Stellium’s approach to renewable energy in data centres

A different approach to energy consumption has enabled the UK-based Stellium Datacenters to reduce its carbon emissions while also lowering pressure on the national electricity grid. The data centre, located near Newcastle and one of the UK’s largest, uses a method that aligns its electricity consumption with renewable energy production on an hourly basis.

This approach moves away from the traditional use of annual power averages, reflecting a response to increased scrutiny of data centres’ energy use and environmental impact. These concerns have grown alongside the expansion of artificial intelligence and cloud computing, which may place additional demand on local power supplies and contribute to rising energy costs. The issue has also been examined by MPs through the Environmental Audit Committee as part of a broader review of the sector’s environmental footprint.

Working with Good Energy, Stellium has adopted a 100% renewable energy policy, with electricity sourced from more than 3,300 independent renewable generators across the UK. Its hourly matching strategy results in 95.4% renewable energy usage, compared with lower average levels across the wider market. The addition of large-scale battery storage is expected to increase this proportion to between 97% and 98%.

Traditionally, the sector has relied on renewable energy certificates that reflect green energy generation over a full year. However, this system can obscure continued use of fossil-fuel-generated electricity during periods of peak demand. Hour-by-hour matching provides a clearer view of when renewable energy is actually being used versus when grid electricity may come from other sources.

Paul Mellon, Operations Director at Stellium, stated: “Data centres often get bad press for their high, inflexible energy use. But this shows that AI and high‑performance computing don’t have to come at the expense of the grid or the climate. By switching to hourly‑matched renewable power, we’ve been able to cut emissions dramatically while giving customers the transparency they increasingly demand.”

Nigel Pocklington, CEO of Good Energy, commented: “By matching electricity use with renewable generation hour-by-hour, Stellium can show when clean power is actually being used - not just claimed on paper. That kind of transparency cuts carbon emissions, reduces reliance on fossil fuels at peak times and proves that digital growth and a resilient energy system can go hand-in-hand.”

This approach has influenced discussions with customers and regulators, particularly those in the global AI and technology sectors that have specific net-zero targets and reporting requirements. Providing visibility into the sources of electricity supports more detailed environmental reporting.

The UK is expected to see continued growth in data centre capacity to support AI and cloud computing. In the context of regulatory and public scrutiny, this model illustrates one way energy sourcing practices can align with both digital expansion and environmental considerations, without relying on annualised reporting alone.

As the sector works to improve environmental accountability, this example highlights how operational changes can support both technological development and energy system resilience.