Wales & West Utilities launches first-of-its-kind study to explore hydrogen use in UK data centres

With growth in demand for data centres predicted to drive a sixfold increase in power use by the industry over the next decade, Wales & West Utilities will lead the study which will develop a strategic and technical evidence base for the potential role of natural gas, a hydrogen blend or 100% hydrogen, in the data centre sector and wider supply chain.

Data centres are considered essential to the growth of the UK economy, but with developments facing long delays in connecting to the electricity grid, and with the drive towards net zero energy by 2030, there is growing demand for clean energy solutions. 

Wales & West Utilities and SGN have appointed engineering consultancy, Apollo, and integrated engineering design firm, Hydrock, now Stantec, in the study.

By using a homegrown and renewable energy source like low-carbon hydrogen, data centres could meet their energy needs while unlocking sites faster, managing energy-related costs and reducing emissions. 

Apollo and Hydrock, now Stantec, will provide an analysis to understand current ambitions, possible applications across a site, barriers to deployment, and the geographical implications of using the existing gas network infrastructure to supply hydrogen to data centres.  

The study will assess how the sector is meeting its current energy demands, and how these may expand in the future. With the growing demands of AI, data centre storage capacity is expected to more than double from 2023 to 2027. 

The project will produce case studies, comparing how different technology and energy vectors could help meet the needs of the sector, including providing much-needed energy resilience and security.  

The study will also explore how data centres could become central in distributing green gas across Wales, and Scotland, as well as the south and south west of England, with the potential to feed into other industries and domestic customers.

Speaking on behalf of the project partners, Head of Net Zero & Sustainability at Wales & West Utilities, Matt Hindle said:

As increased digitalisation drives demand for data centres across the UK, we see there’s a role for low-carbon hydrogen as an enabling energy source. 

This green gas could not only offer the data centres a way to power, and to decarbonise their own operations, as well as providing essential energy security for the sector, but also stimulate the hydrogen economy in the surrounding areas – benefiting both industry and domestic consumers who currently rely on natural gas.

We’re delighted to partner with SGN, Apollo and Hydrock, now Stantec, as a first step in exploring the possibilities for hydrogen in this expanding sector and the opportunities for cross-collaboration.

The project will run until April 2025.