How biomethane powers data centres while hitting net zero targets
In his latest blog, Gran Potter, Chief Corporate Development Officer at Cycle0, considers the role biomethane can play in supporting the sustainable growth of European data centres.
Meeting the power demands of modern data centres with biomethane
The global digital ecosystem is expanding at extraordinary speed. Every click, stream and artificial intelligence query depends on instantaneous processing power, and that requires a significant and growing amount of electricity. For data centre operators, the challenge is clear: how to power rapid expansion while meeting corporate and community sustainability goals, respecting national carbon reduction targets and securing a reliable, continuous energy supply.
Artificial intelligence (AI) is powered by data centres: purpose-built facilities that house servers, storage systems, networking equipment and associated components in temperature-controlled environments. According to the IEA, global data centre electricity consumption is expected to grow by around 15% per year from 2024 to 2030, more than four times faster than electricity consumption from all other sectors.
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 around 70 TWh of electricity in 2024 and could reach 115 TWh by 2030, equivalent to 49% of Spain’s total electricity consumption in 2024. Local utility networks are already struggling to keep pace with this growth.
Traditional renewable energy options also face constraints. Connecting new wind and solar generation often depends on grid upgrades and expansion, which can take time and may encounter social or planning resistance.
A practical solution is emerging from the circular economy. Renewable gas can help bridge the gap between immediate power availability and deep decarbonisation, allowing the digital economy to scale without compromising sustainability commitments.
Why data centres need biomethane
Securing a high-voltage grid connection used to be a routine administrative step. Today, data centre developers can face waiting times that stretch over several years, threatening project timelines and delaying commercial expansion.
Data centres need certainty of supply. On-site secondary generation can support resilience, but it must also align with sustainability commitments. Wind and solar power are essential to decarbonisation, but their output varies with weather conditions, while data centres operate 24/7.
Large-scale battery storage is still too limited and expensive to bridge every gap. During dark, calm periods, relying solely on the grid can mean consuming fossil-fuelled power. Operators therefore need a renewable fuel that matches their constant load profile and can provide reliable, dispatchable energy.
As highlighted in a recent blog by Cycle0 CEO Laurence Molke, biomethane’s story is shifting from renewable energy policy to reliable low-carbon energy with strategic implications. Its role as a resilient, dispatchable energy source, produced from domestically controlled feedstocks and supporting energy independence, has never been more attractive for Europe.
How biomethane supports AI data centres
Biomethane is chemically identical to conventional natural gas, which means it can be used directly in proven, highly efficient on-site gas CHP turbines to provide dispatchable energy. These systems can respond quickly to sudden spikes in computing workloads, offering operational resilience with a much lower carbon footprint than fossil gas.
This is where biomethane can play an important role. As a locally produced renewable gas, it can support on-site generation, backup power or contracted low-carbon energy supply, helping data centres combine sustainability with the certainty of supply they need to operate around the clock.
Operators can also scale their energy procurement in line with server growth. Biomethane provides a secure, predictable route to clean energy availability, regardless of local weather conditions or grid constraints.
Biomethane offtake contracts for data centres
Cycle0 has a significant and growing portfolio of biomethane projects in Europe, with 8 operational plants in Spain, a private central grid injection point and a significant development pipeline there and in Italy, Ireland, Portugal and Denmark.
Data centre operators are already contacting Cycle0 about biomethane offtake contracts. They are looking for energy that is available on demand, locally sourced and less exposed to system constraints. Biomethane can meet this need by providing reliable, consistent renewable energy for critical infrastructure.
Traceable biomethane certificates provide a transparent route to sustainability
As corporate environmental claims face increasing regulatory scrutiny, transparency is essential. Tech companies must be able to prove that their energy procurement reduces emissions. Renewable gas can support this through robust, independent certification frameworks, with every megawatt-hour of biomethane injected into the grid tracked using official Guarantees of Origin.
These certificates verify the source, feedstock and lifecycle emissions of the fuel, creating an audit trail from production to use. This helps ensure emissions reductions are additional, traceable and aligned with net-zero reporting standards.
Biomethane can support the growth of AI data centres because it helps operators meet rising electricity demand while reducing exposure to fossil-fuel emissions, price volatility and grid constraints. Wind and solar power can supply large volumes of low-carbon electricity, but AI servers require constant, reliable power. Data centres therefore need renewable sources that can support resilience when the grid is constrained or intermittent generation is low.
Biomethane suppliers for data centres in Spain, Ireland and Italy
As an investor, developer and operator of biomethane plants in Europe, Cycle0 is well positioned to support data centres looking to source biomethane offtake contracts.
Our 8 operational plants are producing renewable natural gas in Spain, and our current pipeline includes around 30 plants at various stages of permitting or construction across Europe.
We are actively seeking opportunities to acquire greenfield and brownfield plants in Italy, Spain, Ireland and Denmark. Cycle0 also has biomethane project development expertise, including our Green Park 5 plant in Pontinia, Italy, which is being built by our own teams. This means we are well placed to support agricultural, industrial, municipal and data centre clients looking to invest in their own biomethane production facilities.
Get in touch today and our team will be happy to discuss options for biomethane offtake contracts or project development.
