The rapid rise of generative AI has contributed to a surge in data centers around the world. According to the International Energy Agency (IEA), data centers currently account for only one percent of global electricity use, which is less than half that consumed by household IT appliances like computers and TVs. However, the IEA predicts that the situation is likely to change, with global electricity consumption by data centers potentially doubling to more than 1,000 TWh by 2026. That’s equal to what Japan consumes in a year. Sustainable solutions must be found.

At the start of 2024, Tencent installed an innovative microgrid — dubbed the “green heart” — at our Tianjin data center. This cutting-edge system combined solar power with small-scale battery storage, setting a new benchmark for green energy in data centers.

Less than a year later, we have achieved another milestone at our Huailai Dongyuan data center. In officially connecting to the grid, it’s become China’s first data center microgrid to adopt an intelligent management model that integrates wind power, solar power, battery storage and load, overcoming a significant challenge in bridging renewable energy with expanding demand for electricity.

A Coordinated Approach to Green Energy

The Huailai Dongyuan microgrid maximizes the use and benefits of green energy through three operation modes:

1. Solar power: generation for self-consumption     

During the day, solar panels generate power to meet the data center’s real-time energy needs. As the solar installation is sized to match the data center load, 95 percent of the energy produced is directly consumed, minimizing energy curtailment.

2. Solar + storage: optimizing costs through peak shaving

The addition of battery allows for the storage of excess solar energy and low-cost electricity from non-peak hours, which can then be released during high-demand peak hours. Together, by maximizing the use of solar energy and leveraging the grid’s Time of Use tariff, an electricity bill can be further reduced by five percent per day.

3. Intelligent coordination: wind, solar, storage, and load

Wind turbines generate energy day and night, complementing solar power for continuous energy generation. The energy storage system ensures that excess wind energy can be stored for later use, while the intelligent load management platform shifts non-critical load  to match supply fluctuations to maximize renewable energy use. This allows the data center to operate efficiently, no matter the time of day or variations in demand.

Adaptability Across Applications

The microgrid has achieved outstanding adaptability, meeting diverse power needs with precision. Advanced multi-energy coordination ensures stable, efficient power supply across a variety of scenarios.

Data centers

Data centers, which require uninterrupted and highly stable power, benefit from the microgrid’s reliable energy delivery. Even slight disruption can affect computing performance, but the system ensures seamless operations for these critical high-load facilities.

Office buildings

The microgrid efficiently matches renewable energy generation with fluctuating energy needs in office environments, such as lighting, air conditioning, and heating. Such flexible management ensures optimal energy usage while maintaining comfort and productivity.

Charging stations

Electric vehicle charging stations experience irregular power demand as usage fluctuates. The microgrid delivers consistent power when it’s needed.

Reduced Emissions and Cost Savings

At the heart of the project is Tencent’s intelligent microgrid Energy Management System (EMS), which ensures efficient, cost-effective and stable renewable energy management.

The system enables: real-time monitoring of the operational data of solar panels, wind turbines, and energy storage; power forecasting by combining weather data and historical energy trends to predict energy generation and consumption; and strategy optimization that adjusts energy allocation and storage based on electricity prices and renewable energy generation minimizing costs and emissions.

Numbers are encouraging, with the system:

• generating 14 million kWh of electricity annually;
• reducing emissions by 7,984 tons; and

To date, green energy accounts for more than 70 percent of annual electricity consumption at our self-built large-scale data centers.

Beyond these metrics, the project successfully pilots a synergistic green energy model, demonstrating its technical feasibility and paving the way for broader adoption.

Building a Carbon-Neutral Future

Tencent’s data centers now have the capacity to store over 66 MW of renewable energy, generating 70 million kWh of electricity annually, enough to power 25,000 households for a year.

With several data-center-based green power stations already built in the south, east, and north of China, and more on the way, we’re transforming our operations and contributing to global efforts to achieve carbon neutrality.

Through continuous innovation, we aim to provide sustainable services to our users and customers while driving the industry’s green transformation.

So, which city will host Tencent’s next green data center? What technological advancements are you most excited to see?

We’d love to hear your thoughts as we continue building a cleaner, greener future together.