6 data center regulations

Our lives are becoming increasingly online. From e-commerce through to social media and telemedicine, we’re taking advantage of the convenience and easy access that these services offer. Unfortunately, this also means huge increases in the demand for data transmission and processing. That, in turn, means that we need more data centers. And with more data centers comes more compliance obligations to mandate the security of sensitive data, operational excellence, and sustainable practices.

Data centers are accelerating growing tensions surrounding data protection, personal information, and security, as well as a number of environmental risks from energy consumption, greenhouse gas (GHG) emissions, water use, hazardous electrical and electronic waste (e-waste), and health and safety. And while data centers are a critical infrastructure for digital technology, they consume considerable amounts of energy and resources, significantly impacting reliant communities. 

Governments have responded with compliance requirements designed to mitigate data centers’ adverse environmental impact and address health and safety issues.

In this article, Senior Expert Support Manager, Elaine Ye, details six trending EHS regulations that data center developers, owners, and operations should consider as they evolve the design, siting, construction, and daily operation of their data centers. 

1. Regulation around energy consumption

There have been several energy management regulatory changes related to the rise of carbon neutrality and zero emission goals. For instance, the European Commission has amended energy statistics regulations to include energy data reporting requirements for data centers.

Some compliance requirements demand data centers to change their operating model. Regulators are encouraging data centers to look into the sources of their energy, energy use efficiency, and conservation.

In many countries, data centers must be able to operate on renewable energy. For instance in Europe, the EU Renewable Energy Directive was amended to promote the use of energy from renewable sources and contribute to the EU’s 55% emissions reduction objective.

In China, the design of new data centers must factor in energy management regulations to comply with the “green energy” policies and standards. This is set out in the Three Year Plan on New Data Centers Development (2021–2023). New data centers must meet the 4A level under the Data Center Low-Carbon Rating.

2. Regulation restricting GHG emissions

Data center operations, particularly the server operation and cooling processes, generate considerable amounts of GHGs. This is both direct (e.g. emissions from equipment and power generators onsite) and indirect emissions (e.g. emissions from electricity suppliers).

Regulatory compliance changes mean that these emissions must now be reported under country-specific or sustainability and climate disclosure obligations (e.g. national emission trading schemes, EU Corporate Sustainability Reporting Directive (CSRD), and US Greenhouse Gas Reporting Program (GHGRP)).

Several regions have also banned or started to phase out certain greenhouse gases. Hydrofluorocarbons (HFCs), for example, are commonly used as refrigerants for cooling systems. They’ve now been banned under the Kigali Amendment to the Montreal Protocol. Consequently, many countries have accelerated compliance efforts and introduced regulatory requirements to prohibit the production, consumption and release of HFCs. Data centers using refrigerants containing HFCs must find alternative products.

3. Regulation on electric and electronic waste

Data centers are one of the largest e-waste generators, giving rise to regulatory challenges to ensure compliance in electrical and electronic waste.

Data centers typically generate waste such as racks, computing equipment, monitors, circuits, and other electrical components. They also frequently need to upgrade, replace or maintain this equipment to keep up with technological demands and standards.

There’s growing regulation affecting data centers on disposal and recycling of e-waste to avoid any toxic substances being released into the environment.

4. Regulation on water consumption

Water consumption is also the subject of regulatory compliance developments. Data center operations rely on cooling systems, which are water-intensive processes.

In January 2023, US legislators in Virginia introduced a new bill about the siting of data centers to prevent water pollution. New data centers are likely to be subject to site assessment to examine their sustainable practices and the effect on the environment, which will include scrutiny on water usage. Data center developers and owners must develop strategies to limit their adverse impact on the environment as part of their design and development plan.

Many data center developers and owners have already used climate-conscious approaches to build water stewardship programs, allowing them to monitor water consumption and reduce water usage in cooling processes. However, there’s no single one-size-fits-all solution. Different designs and operating models of data centers may require different water conservation strategies to meet regulatory requirements.

5. Regulation on noise

Noise emissions may also affect new data center development. Several sites have recently had issues with community concerns about the likely health and safety impact on the surrounding neighborhood. States and municipalities may introduce regulations to place stricter noise emission limits on data centers in areas close to residential districts.

High noise levels are an even bigger issue for employees within data centers. The equipment onsite usually generates sufficient noise to have a negative impact on hearing, especially for those working long hours. Data centers need to comply with safe standards on noise limits. For example, the US Occupational Safety and Health Administration (OSHA) imposes a permissible exposure limit (PEL) of 90dB(A) for employees working for eight hours per day.

A compliant data center therefore needs to provide adequate equipment and preventative measures against noise emissions, which might include limiting working hours.

6. Regulation on electrical safety

High-voltage panels, circuits and arc flash are common hazards at data centers. There’s a considerable amount of electrical and electronic equipment on site, such as power generators and storage.

These electrical products could cause hazards like burns, flying objects, and fire. Regulations are therefore designed to ensure that data centers eliminate, or at least minimize, the hazards. These include:

• Specific work procedures so that employees avoid working in close proximity to electrical hazard areas
• Placing warning signs to alert workers

Data center owners and operators should check the relevant health and safety regulatory agencies’ guidelines or industry best practices, such as the National Fire Prevention Standard 70 and 70E, to manage electrical hazards appropriately.

Keeping your data center on top of regulatory obligations

The amplification of technology use is forcing global regulators to enhance compliance standards and encourage more sustainable practices in moderating data security, infrastructure, security measures, and power usage. 

The transference of sensitive information and sensitive data demands new and evolving compliance requirements to protect both companies and individuals from the exposure of personal information. 

Outside of the risks of technology usage lies the environmental and environmental, health, and safety (EHS) consequences of data centers. Data center siting, construction, and operation are subject to a growing range of EHS regulations and guidelines, demanding that data center owners and developers comply with evolving best practices in energy efficiency, e-waste management, water conservation, and noise and electrical safety protection. This will ensure that data centers can continue to provide critical infrastructure services while minimizing their carbon footprint and environmental impact.