Biomethane offtake contracts for data centres

Europe’s data-centre sector is expanding rapidly, supporting the growth in by cloud computing and AI.

While consistent public data on the number of operating centres is limited, the power-demand trend is clear: the IEA estimates that EU data centres consumed an estimated 70 TWh of electricity in 2024 and could reach 115 TWh by 2030, equivalent to 49% of Spain’s total electricity consumption in 2024.

This makes sustainability an important item on any data centre’s plan.

Why data centres need biomethane

Enquiries from data centres contacting Cycle0 show a combination of factors contribute to operational success; a secure and reliable power supply being at the top. But getting access to electricity grid connections can be a long and expensive process, and supply contracts are often subject to fluctuations in energy markets affected by geopolitical tensions.  

Data centre operators know that renewable energy can help to meet some of these challenges, but is often intermittent, as in the case of solar and wind power.

Biomethane is a secure and dispatchable low-carbon gas for data centres

Other renewables can supply large volumes of low-carbon electricity, but data centres need reliable renewable sources that can support resilience when the grid is constrained or intermittent generation is unavailable.

Biomethane is not challenged by intermittency or grid access constraints. It produces constant renewable gas from locally sourced feedstock, providing an energy source with a low or negative carbon intensity (CI) score dependent on the feedstock.

Other renewables can supply large volumes of low-carbon electricity, but data centres need reliable renewable sources that can support resilience when the grid is constrained or intermittent generation is unavailable.

Biomethane can be used to power on-site gas CHP engines, to provide dispatchable energy for backup power or contracted low-carbon energy supply or injected into existing gas networks or liquefied for road and maritime transport dispatch. This helps data centres combine sustainability with the certainty of supply they need to operate 24/7.

Biomethane, a renewable natural gas, is produced by converting naturally occurring emissions through anaerobic digestion (AD) to create biogas from local organic waste streams such as manure, slurry, agricultural residues, food waste and industrial by-products.

The AD process also produces digestate, a nutrient-rich organic fertiliser that helps to reduce dependency on imported fossil-based fertilisers.

In summary, biomethane can support the successful operation of data centres because it allows operators to meet rising power demand by reducing fossil-fuel emissions, and exposure to price volatility and electricity grid constraints.

Why biomethane is needed to support data centre growth

AI adoption by European businesses is expected to accelerate strongly over the next five years. Eurostat data shows that the share of EU enterprises using AI rose from 8.0% in 2023 to 13.5% in 2024, while 2024 analysis from AWS and Strand Partners found that around one third of European businesses had adopted AI, with adoption growing by 32% since 2022.

With this momentum, AI will move quickly from pilot projects to mainstream business infrastructure, increasing demand for data-centre capacity and reliable, low-carbon energy.

Read the latest blog from Gran Potter, Chief Corporate Development Officer at Cycle0 as he considers the unique role that biomethane can play in supporting data centre growth. Cycle0 has a significant and growing portfolio of data centres in Europe, with plants operating or planned in Spain, Italy, Ireland, Portugal and Denmark.

We offer biomethane offtake agreements. If you’re looking for low carbon biomethane offtake contract, get in touch with our expert team to discuss your requirements.