Can hydrogen fuel cells power data centres?
Data centres are the backbone of our digital world, supporting everything from cloud computing and data storage to AI processing. Yet, they demand vast amounts of electricity and often depend on diesel generators for backup power to maintain uptime during grid disruptions. As the urgency to cut carbon emissions grows, companies are under increasing pressure to adopt cleaner, more reliable energy alternatives.
Hydrogen fuel cells could provide the answer and are gaining traction as a promising solution for data centres. By offering reliable zero-emission power, they are emerging as a viable alternative for data centre energy needs, for both primary and backup power systems.
As the industry shifts toward sustainable, high-resilience infrastructure, the scalability, integration complexity, and lifecycle performance of hydrogen technologies are becoming critical areas of focus. So, can they scale up to meet the industry’s demands? In this article, we will explore the benefits, challenges, and long-term potential to reshape the sector’s energy landscape.
Why data centres need cleaner power
Data centres consume enormous amounts of electricity to power servers, cooling systems, data storage and network infrastructure – some facilities use tens to hundreds of megawatts, and this number is growing exponentially. Relying on fossil fuels to meet this demand, data centres are generating significant carbon emissions.
In 2022, global data centre electricity use was estimated at about 1% of total electricity demand (IEA) and is expected to grow as AI and cloud computing expand.
Despite advancements in infrastructure, data centres still depend on diesel generators for backup power – systems that contribute significantly to carbon emissions, local air pollution, and operational inefficiencies due to frequent maintenance needs. Their limited reliability under sustained loads raises concerns about resilience in the face of growing demand. So, what are the viable alternatives? How can the data centre industry continue to scale without exacerbating its environmental impact?
This is where fuel cells and renewable energy enter the equation. In line with global decarbonisation efforts, the UK government has established ambitious climate targets, including the production of 10 GW of low-carbon hydrogen by 2030 – at least 5 GW of which is expected to come from green hydrogen, produced via electrolysis using renewable energy. These developments position hydrogen as a key enabler of cleaner, more resilient power solutions for critical infrastructure like data centres.
How hydrogen fuel cells would work in data centres
Unlike traditional diesel generators, hydrogen fuel cells generate electricity through a chemical reaction between hydrogen and oxygen. This process produces only water vapour as a by-product, making it a zero-emission power source (read about the process in detail here).
Here’s why hydrogen fuel cells are well-suited for data centres:
- Continuous power – As long as hydrogen is supplied, fuel cells generate power without needing to recharge (unlike batteries), improving uptime and reliability.
- Low noise & vibration – Unlike diesel generators, fuel cells operate quietly, reducing noise pollution.
- Scalability – They can be used for small, edge data centres or scaled up for large facilities.
The key benefits of hydrogen fuel cells for data centres
1. Environmental benefits
Hydrogen fuel cells produce zero CO₂ emissions, making them a cleaner alternative to diesel generators. As data centres look to reduce their carbon footprint, hydrogen can help meet sustainability targets and support corporate ESG (Environmental, Social, and Governance) commitments.
2. Reliability & energy security
Data centres demand uninterrupted, 24/7 power availability, as even brief outages can lead to significant financial losses and operational disruptions. Fuel cells offer a stable and continuous power supply, provided that a consistent flow of hydrogen is maintained. When integrated with renewable sources like solar and wind, excess energy can be converted into hydrogen via electrolysis and stored for later use—creating a flexible, low-carbon energy system capable of meeting peak demand and enhancing grid resilience.
3. Futureproofing against regulations
Governments worldwide are tightening regulations on carbon emissions and pollution from diesel generators. Transitioning to hydrogen-powered backup systems can help data centres comply with future emissions laws and avoid potential penalties.
4. Scalability & flexibility
Hydrogen fuel cells can be used in a variety of setups:
- Edge data centres – Small, localised data hubs that need independent power sources.
- Hyperscale data centres – Large-scale facilities that require megawatts of power.
As hydrogen infrastructure improves, fuel cells will become even more practical for large-scale deployment.
Challenges & considerations
While hydrogen fuel cells have significant potential, some challenges need to be addressed for widescale roll out:
1. Hydrogen production & supply
For hydrogen to be truly sustainable, it must be produced using renewable energy and the process of electrolysis. While green hydrogen production is growing, it remains significantly more expensive than hydrogen derived from fossil fuels (such as grey or blue hydrogen). As a result, many users continue to rely on less sustainable hydrogen sources, limiting the environmental benefits of hydrogen-based systems.
2. Infrastructure development
A widespread hydrogen refuelling and distribution network is essential for large-scale adoption. While the UK government is starting to invest in hydrogen infrastructure, more work is needed to make it widely available and with greater availability comes lower costs.
3. Cost & investment
The initial cost of hydrogen fuel cell systems is still higher than traditional diesel generators, partially due to volume and materials and partly to do with the cost of hydrogen required to operate them. As the technology advances however, and production scales up, costs are expected to decrease.
The future of hydrogen-powered data centres
The use of hydrogen fuel cells in data centres is not a distant possibility, it’s already happening. Companies like Microsoft have successfully tested hydrogen fuel cells as a backup power source for data centres, proving their feasibility for long-term deployment.
As hydrogen production becomes more efficient and infrastructure is invested in and put in place, the cost gap between hydrogen and diesel will shrink, making fuel cells a more competitive option.
For data centre operators looking to future-proof their energy strategy, hydrogen presents a scalable, reliable, and environmentally friendly alternative to traditional backup power solutions.
Interested to learn how hydrogen fuel cells can work for your data centre? Get in touch with Intelligent Energy to learn more.