Data center sustainability is a critical priority right now. As digital infrastructure expands across every industry, the need to power data centers with clean, reliable energy becomes more urgent. While many teams want to go green, moving to renewable energy isn’t always simple. It requires solving real problems involving technology, cost, space, and nonstop operations.

Continue reading to discover the biggest barriers to clean energy adoption and explain how to solve them using proven tools and strategies—all while keeping data center sustainability front and center.

The Growing Pressure to Decarbonize

Data centers use a huge amount of electricity, and that demand is growing as more people rely on digital tools, online services, and cloud storage. Alongside that growth comes pressure from governments, investors, and customers to reduce emissions and source clean power.

The push to decarbonize also comes from within. Many organizations have set strong environmental, social, and governance (ESG) goals. These targets require internal teams to rethink how they purchase, use, and manage energy. In most cases, the challenge is balancing these goals with core operational demands like performance, uptime, security, and cost control.

Today, data center sustainability shows leadership. Businesses and customers want to see measurable progress, not just promises. Those that fail to evolve may lose credibility or miss out on future growth opportunities.

1. Intermittency: Renewable Energy Isn't Always Available

One of the biggest issues with renewable energy is reliability. Solar and wind depend on weather conditions and time of day. They don’t always provide a steady power supply—something data centers absolutely need.

Solution: Hybrid Renewable Systems and Energy Storage

The key to solving intermittency is using hybrid systems that combine solar, wind, and energy storage. Batteries store extra energy during peak generation and deliver it when conditions change.

With advanced grid controls, data centers can automatically shift between sources, maintaining smooth and consistent operations. These smart systems help ensure uptime while using more clean energy. In places with harsh weather or aging grids, battery backups also act as a safety net that keeps critical systems online.

Using a hybrid energy model helps data centers reduce peak demand charges and save on long-term operating costs. This makes the transition to renewable energy more practical and affordable.

2. High Upfront Costs and Long Payback Periods

Investing in renewable energy often requires big upfront spending. Equipment, construction, permitting, and system upgrades all come with a price tag. Even though long-term savings are real, the early costs can scare away decision-makers who need quicker returns.

Solution: Power Purchase Agreements (PPAs) and Incentives

One way to reduce risk is through a Power Purchase Agreement (PPA). This model allows a third-party provider to build, own, and manage the energy system. Your facility simply pays for the electricity it uses at a locked-in rate.

PPAs eliminate the need for upfront capital while still delivering the benefits of clean power. Over time, your operating expenses stay stable, and you avoid the volatility of traditional energy markets.

State and federal incentives can also ease the financial burden. Tax credits, rebates, and depreciation programs can cut your total project cost significantly. Virtual PPAs offer even more flexibility, enabling off-site renewable investments that still count toward your data center sustainability goals.

Start your path to clean, resilient data center power with Pacifico Energy's tailored renewable solutions.

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3. Space Constraints

Not every data center has room for large renewable systems. Urban properties or older facilities often lack the physical space for on-site solar or wind installations.

Solution: Offsite Renewables and Smart System Design

You can still achieve your goals through off-site projects. Utility-scale solar farms and wind parks deliver green energy to the grid and support your sustainability metrics—even if they’re not on your property.

In addition, smaller, smarter systems can make the most of limited space. Rooftop panels, parking lot canopies, and compact battery storage units help integrate renewables where possible. With smart load balancing and energy management software, you can get the most value out of every square foot.

As technology improves, the footprint of renewable systems continues to shrink. This opens new opportunities for facilities that couldn’t participate before.

4. Grid Integration and Utility Coordination

Hooking up a renewable system to the grid isn’t always fast or easy. Each utility has its own

requirements for interconnection, safety, and reporting. These hurdles can delay progress and add costs.

Solution: Work With Experts on Grid Connections

The right energy partner can manage this process smoothly. They handle the technical reviews, gather the needed paperwork, and work directly with your local utility.

Expert teams know how to speed up approval timelines and keep your project compliant. They also identify utility programs—like net metering or demand response—that improve your ROI. In short, they take care of the hard stuff so you can focus on operations.

Strong utility coordination ensures your energy strategy aligns with local grid standards and unlocks valuable benefits, including incentives and long-term rate stability.

5. Regulatory and Permitting Hurdles

Permitting can become a bottleneck, especially in areas with complex regulations. Some cities and counties have outdated rules that weren’t built for renewable systems.

Solution: Expert Project Management and Policy Support

Professional energy developers know how to handle these hurdles. They stay up to date with local, state, and federal policies and ensure that your project meets every requirement.

This includes environmental reviews, zoning changes, and coordination with permitting agencies. For sites near protected areas or infrastructure, they also help manage extra reviews under NEPA, CEQA, or other regulations.

By outsourcing this work to experts, your team can keep the project moving forward without delays or surprises.

Real-World Success: Overcoming Obstacles at LACSD

The Lancaster Water Reclamation Plant, managed by the Los Angeles County Sanitation Districts, offers a clear example of renewable energy success. With Pacifico Energy as its partner, the facility installed a 2.6 MW solar array and a 2.5 MW / 5 MWh battery energy storage system.

The team faced several challenges, including site layout restrictions, permitting requirements, and utility interconnection. Pacifico guided them through each step, from design to installation, and helped the project stay on time and on budget.

Today, the system significantly reduces grid dependence and provides stable, cost-effective energy. It also enhances the plant’s resilience, allowing operations to continue even during grid outages. This project proves that thoughtful planning and expert support make a real difference in achieving data center sustainability.

Building a Practical Roadmap to Sustainability

Meeting your energy goals requires more than ambition. You need a clear roadmap tailored to your facility and operations. Successful projects follow a structured process to avoid risks and maximize results.

• Start with a full energy audit to understand your needs

• Review available incentives and financing models

• Design a system that matches your site and sustainability goals

• Integrate energy management tools to improve performance

• Plan for long-term monitoring, service, and upgrades

When you work with the right team, you gain access to resources and insights that keep your project on track. You also benefit from years of industry experience that can help you avoid costly mistakes.

Get Smarter, Cleaner Power Starts With Pacifico

Pacifico Energy offers full-service renewable energy solutions built for critical infrastructure. We handle every step—from permitting and utility coordination to design, installation, and ongoing maintenance.

Let’s build a smarter, cleaner, and more reliable energy future—together.