Renewable energy offsets. Net zero by 2050 targets. For many operators, these vague nods towards reducing their emissions are enough to claim they’re ‘sustainable’. This buzzword is thrown around so often that it’s lost all meaning.

When almost every data centre the world over is describing itself as ‘sustainable’, how can we evaluate if they are truly helping the planet? Beyond environmental considerations, what does ‘sustainable’ mean for the people living near a data centre in the UK? We need a new way to prove that data centres aren’t damaging the local environment or community. As well as transparent, thorough reporting of their operations, data centres must also earn their ‘social license to operate’.

What does ‘social license to operate’ mean?

Social license to operate, or SLTO, refers to whether a company has earned its right to operate by contributing to society. For data centres, this means ensuring they have as positive an impact as possible on the local environment and community. Facilities should be highly efficient and run on renewable energy to reduce emissions. Water usage should be kept to a minimum (it’s possible to run a data centre using only as much water as a domestic house per year) so as not to drain local supplies. Operations should be reported transparently so everyone from the public to compute buyers to policymakers can evaluate a data centre’s environmental impact, and judge whether they have earned their social license to operate.

Beyond minimising emissions and water use, the SLTO data centre model also involves contributing to the community. Data centre servers produce heat, which the majority of facilities discard. By donating this heat to communities via district heating systems, data centres can help local buildings such as leisure centres, universities, greenhouses, or residential homes reduce their emissions and heating bills.

As well as donating heat, data centres can also earn their social license to operate by funding community programmes that help local people and the environment. These could include planting trees to bring more green space to the local area, or funding swimming lessons for people who wouldn’t otherwise have a chance to learn this life-saving skill.

“Committing resources — including time and money — to communities isn’t tokenism, or even a requirement for permission to build and operate,” says Matt Bagwell, Deep Green’s Chief Sustainability Officer. “It’s the right thing to do.”

Evaluating data centres on their social license to operate is more crucial than ever

Let’s be honest: data centre operators don’t have the best reputation. The general public believes that data centres take over green space, drain water resources and energy supplies, and emit carbon into the atmosphere. 

Are they right to distrust data centres? Yes, when it comes to legacy operators that claim to be ‘sustainable’ because of their net zero by 2050 targets or renewable energy offsets. However, not all data centres are built the same. Modular, high-density data centres that are built into existing urban infrastructure, donate heat to communities, and run efficiently with almost zero water use can be positive community assets. With nine in 10 Brits admitting that they know little to nothing about data centres in the UK, we must differentiate between data centres that positively impact communities and those that harm them. The crucial question to ask: has a data centre earned its social license to operate?

For Deep Green, social license to operate is “a principle that drives our behaviour: building community and environment assets that are beneficial for everyone,” Matt says. “We accept our responsibilities to generate direct and indirect inbound value for local communities.”

What this means for enterprises when buying AI-ready compute

Data centre operators are currently bearing the brunt of public scrutiny, whereas enterprises or organisations aren’t being criticised for buying compute in AI-ready data centres. However, as the general public becomes more conversant in how AI usage is driving data centre demand, their scrutiny may well switch focus. Enterprises and organisations that use AI must be prepared to justify their compute purchases. How? By choosing to host their compute in data centres that have earned their social license to operate.

It’s not just public distrust that enterprises will need to overcome. Increasing regulatory pressure means enterprises will be required to share transparent reporting that proves their compute’s social license to operate. Vague claims like ‘sustainable’ will no longer cut it. Audit-grade reporting will be especially crucial as EU taxonomy requirements become mandatory for even more enterprises as of 2028.

What this means for governments when creating policy for data centres in the UK

For governments and policymakers, it’s time to distinguish between so-called ‘sustainable’ legacy data centres and AI-ready data centres that earn their social license to operate. Policy must prioritise granting grid access to data centres that donate heat to communities, so the UK can meet net zero targets and continue to pioneer in AI.

What this means for the people who live near data centres in the UK

The general public’s response to proposed data centre builds is often ‘not in my backyard’. Public distrust of data centres has led to a misconception that living near a data centre facility is always bad. This is why you must ask data centres if they have earned their social license to operate in your area. A data centre that contributes to your community is a positive asset and a great neighbour to have.

Wondering whether a data centre has earned its social license to operate?

Consider the following metrics:

A new way of evaluating data centres

‘Sustainable’ claims are no longer enough. It’s time to move beyond vague buzzwords and towards transparent, audit-grade reporting that proves a data centre has earned its social license to operate. Want to see a blueprint of an SLTO data centre? Check out our Urmston facility.