PPAs, Batteries and Sensible Sustainability: What Matters for Practical Colocation Buyers

Sustainability has moved beyond marketing language. It now defines the credibility of a datacentre operator. Yet the focus has shifted. It is no longer enough to talk about carbon reduction or renewable certificates. Customers want evidence of real action. They want to understand how operators plan for long term power availability, not just how they report energy use.

The Salute State of the Industry 2025 report indicates that renewable adoption has become mainstream. 46% of respondents now use power purchase agreements for renewable supply, 45% use battery storage, and 44% use green tariffs or renewable certificates. 39% have on site generation. These numbers show that sustainability is maturing from ambition to infrastructure.

This creates a far more practical conversation for buyers. Sustainability must be provable, stable and visible. It must integrate with operational resilience. This matters particularly for organisations deploying traditional compute, where predictable power and long term site viability are more important than scale.

Why Renewable Strategy Is Becoming a Board Level Decision

Customers, regulators and investors now expect a clear renewable energy strategy. This is driven by more than environmental pressure. It is also about financial predictability and risk management.

Organisations want to know:

• How dependent is the datacentre on volatile wholesale markets

• How the operator has insulated itself from peak pricing

• Whether renewable usage is guaranteed or variable

• Whether storage provides support during renewables intermittency

• How regulators may evaluate power sourcing in the future

• Whether the provider can prove claims beyond literature

These questions show a clear shift towards transparency. Reporting must be demonstrable and auditable, not a narrative.

The Isle of Man Datacentre supports this through stable, controlled operations, ISO 14001 environmental management, and clear governance around energy usage.

PPAs Are Moving From Differentiator to Requirement

Power purchase agreements were once a sign of sustainability leadership. Today they are expected. The report reflects this clearly with nearly half of respondents actively using PPAs. This trend will continue. Rising density and increasing power consumption mean operators must secure predictable, renewable supply long before future capacity is needed.

For enterprise customers, the presence of PPAs indicates:

• Long term thinking

• Protection from wholesale price volatility

• More accurate budgeting

• A commitment to responsible energy sourcing

• Greater alignment with internal ESG criteria

PPAs do not eliminate risk, but they reduce uncertainty. This aligns closely with the stability expectations of organisations running traditional 4kW to 8kW racks.

Why Battery Storage Is Entering the Mainstream

The report shows that 45% of respondents already use battery storage for renewable balancing. This signals a step change in energy strategy. Battery storage smooths output from renewables and helps operators maintain stable power quality. This protects both the grid and customer workloads.

Battery storage strengthens:

• Grid independence during short term disruption

• Power quality and consistency

• Protection against renewables intermittency

• Overall sustainability reporting

• Resilience during peak load

• Confidence in future expansion

For traditional compute, steady power delivery is essential. Battery storage supports this without exposing customers to the complexity of dynamic energy markets.

Why Some Markets Struggle With Sustainable Growth

The report highlights a gap between the US and UK. 51% of US organisations use PPAs compared to 41% in the UK. This does not reflect a lack of intent. It reflects the reality of grid congestion, planning constraints, and inconsistent energy policy across parts of the UK.

This landscape benefits regions like the Isle of Man. A smaller, well governed jurisdiction can deliver more predictable long term planning. It is easier to align energy sourcing, facility design, and operational strategy.

This predictability is valuable for organisations that need stable power for the next decade, not just the next quarter.

The Value of Sensible Sustainability Over Hype

The datacentre industry is experiencing rapid change, accelerated by trends around AI. Many operators are reacting by pursuing aggressive density-focused retrofits and large scale sustainability statements. This sometimes results in optimistic claims that are difficult to prove.

Sensible sustainability offers more value for traditional enterprise buyers. It focuses on:

• Efficiency rather than experimentation

• Measurable performance rather than aspiration

• Responsible sourcing rather than headline claims

• Governance and ISO frameworks

• Low risk operational environments

• Predictable power usage

• Long term reporting transparency

This is where traditional environments, like those in the Isle of Man, offer a dependable alternative to high density hyperscale regions.

How the Manx Telecom Group Datacentre Supports Sustainable Growth

Environmental responsibility is built into the operating model, not added as an afterthought. The datacentre delivers:

• Stable power delivery

• Predictable energy usage for traditional compute

• ISO 14001 aligned environmental practice

• Mature cooling architecture

• Controlled energy governance

• A clear sustainability narrative that avoids exaggeration

This creates a realistic and dependable platform for enterprise workloads.

Sustainability is no longer a competitive badge. It is an operational requirement and a test of a datacentre provider’s maturity. The industry is moving towards practical, demonstrable and responsible energy management. PPAs and storage will soon be expected by default.

For organisations running traditional compute, the priority is a stable, predictable and well governed environment. The Manx Telecom Group Datacentre provides this foundation through responsible energy usage, environmental control and consistent engineering.

This is sustainability that supports resilience, rather than sustainability that relies on aspiration.

If you want to explore responsible, long-term colocation for traditional compute, the Manx Telecom Group Datacentre team is ready to help.

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