Why Sustainability Still Isn’t Driving Data Center Deals

Despite widespread environmental concerns, data center customers and operators fail to prioritize sustainability in purchasing decisions. A Seagate survey reveals that while 95% of data center stakeholders worry about environmental impact, only 3% make it a top priority when making procurement choices.

The disconnect stems from cost-focused purchasing practices, with acquisition costs and performance requirements dominating decision-making. Even though 92% recognize the importance of extending storage equipment lifecycle, just 16% consider it a major purchasing factor. AI workloads are intensifying this challenge, with energy demand from data centers projected to double by 2030.

“Customers have a very large voice. Don’t underestimate how powerful that CIO feedback loop is. The large cloud accounts are customer-obsessed organizations, so they listen, and they react.”
— Jason Feist, SVP of Cloud Marketing at Seagate

DataBank’s sustainability director Jenny Gerson notes increasing contractual requirements for renewable energy,[https://www.databank.com/resources/blogs/reducing-the-impact-of-data-centers-on-the-environment-and-communities-a-net-positive-approach/] particularly from large enterprise customers with stringent environmental goals. However, many CIOs struggle with calculating carbon footprints across multiple regions and providers.

Industry experts emphasize that CIOs possess significant influence during procurement negotiations and should demand transparency about energy consumption and carbon footprints before signing long-term contracts. The key is applying pressure at the point of procurement rather than after deals are finalized.