Data centre power: Using the gas network and hydrogen to power data centres
July 29, 2025
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Groundbreaking new study reveals gas network could be repurposed to power data centres using green hydrogen
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In 2024 we were asked, alongside Apollo, by Wales & West Utilities and SGN to undertake a first-of-its kind study into data centre power. The focus? To determine the feasibility of using the UK’s gas network to power the growing data centre market.
The study examined the use of fuel cells and internal combustion engines powered by natural gas, a hydrogen–natural gas blend, and 100 percent hydrogen. The findings were very encouraging.
We conducted national and global research, undertook cost analyses, and completed technical appraisals for real sites. We interviewed data centre operators, real estate developers, and utilities companies. This helped us to determine what could work best for the industry. For me, it’s been a uniquely collaborative and proactive project with input from so many corners of the sector. We are all eager to see where this study could lead.
After all, data centre developers are prepared to spend on average 50 percent more on power if it means they can get to market more quickly—especially while the electrical grid is so constrained. And thanks to electrification and green fuel adoption, the UK has an extensive gas network that’s capable of transporting an increasing volume of clean energy over the coming years. For example, introducing a 20 percent hydrogen blend initially would reduce carbon emissions by 7 percent. And then if we move towards a 100 percent hydrogen gas grid, the market will already be familiar with this new way of operating.
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Data centre developers are prepared to spend on average 50 percent more on power if it means they can get to market more quickly.
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The final report details our findings and outlines four archetypes where this data centre power arrangement could be possible. Let’s look at the highlights.
Global trends, UK drivers
I was interested, though not surprised, to hear that data centre developers are reluctant to be a ‘first mover’ when it comes to generating power in this way, on-site. Data centre customers prioritise reliability and security of continuous supply of power. Because of this we see gas and hydrogen as primary sources of data centre power across Europe and North America.
At Datacloud Global Congress in June, CyrusOne presented a model of its FRA7 data centre in Frankfurt, Germany. It has partnered with E.ON to develop an energy centre to supplement its grid connection and support a larger IT load. This will include multiple 4.5-megawatt (MW) gas engine modules. Initially, they will be powered by natural gas but can run on a 25 percent hydrogen blend. They also have the potential for full hydrogen conversion through future upgrades without having to fully replace the system. This is crucial for operational up-time.
" }The study indicates that it is technically and systematically possible to supply data centre power from the gas network.
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Nevertheless, all the developers we spoke to were interested in our study. Key drivers included:
- The opportunity to reduce data centre power emissions
- Commitments under the Climate Neutral Data Centre Pact: carbon neutral by 2030
- Grid capacity constraints delaying new sites and expansion plans. For example, I just received a connection date as far out as 2039.
- The opportunity to co-locate a scalable peaking power plant on-site for demand flexibility or frequency response grid services as an alternative source of revenue
Fuel cells vs internal combustion engines
The study focuses on the use of gas-fuelled internal combustion engines and fuel cells. We looked at two cost models: the leasing of fuel cells and the purchase of internal combustion engines. We found that internal combustion engines are currently more cost-effective. They’re also well-established. However, fuel cells are more efficient. If the price of gas and market confidence in fuel cell technology increase, this cost analysis could change.
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Introducing a 20 percent hydrogen blend to gas initially would reduce carbon emissions by 7 percent.
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The report also reveals cost breakdowns for different data centre power demands. And it considers the land required. While suitable modular solutions can be scaled up, the land area required for these options can become significant for high power demands without the well-designed coordination and stacking of equipment.
Data centre archetypes
The study identifies four example archetypes that might be suitable for gas power:
- Edge (1 to 2 MW)
- Campus (30 to 50 MW)
- Hyperscale support (30 to 50 MW)
- Future hyperscale (100+ MW)
We examined the opportunity for gas-supported data centre power on sites in Reading, Surrey, Cardiff, and a future hyperscale data centre with no available grid connection. The latter begs the question: Does this open up new geographical regions for data centre development in areas where electricity connections are unfeasible? Would a developer co-locate a data centre with other infrastructure or industries if it meant they could access 100 percent hydrogen?
Conclusion
The study indicates that it is technically and systematically possible to supply data centre power from the gas network. It has determined economic estimates to do so for different scales and forms of data centre. Global precedent, industry appetite and growth, gas infrastructure suitability, and initial cost analysis all show positive indications for such a solution.
However, there are significant questions on customer requirements, regulatory constraints, and engineering details. To explore this issue in more detail, we recommend:
- A detailed feasibility study: Gas networks and data centre developers should work together on a detailed feasibility study. This should include network modelling, resilience requirements, connection design, and co-location of relevant technologies such as waste-heat recovery and district heat networks.
- More data sharing: Gas networks should share data on historic demand, regional capacity, and feasible pipeline sections for connection. This would make it easier to identify prime opportunities for data centre power.
- Carbon capture and storage and waste-heat recovery: Data centre developers should consider co-locating these technologies alongside any future on-site power generation plant to reduce emissions and increase energy efficiencies for the wider area.