This isn’t a future fuel for some distant tomorrow. Green ammonia is a real, available solution for today’s data centre challenges.” � Hassan Modarresi, Senior Technical Director – Energy, USA “
From farms to the clouds: Can green ammonia solve the data centre energy dilemma? Artificial intelligence and digital infrastructure are
Carbon-free operations Unlike diesel generators or carbon-intensive hydrogen production methods, ammonia fuel solutions eliminate carbon emissions completely. Leveraging these systems represents a step toward achieving net-zero goals in the operations of data centres while setting new standards for environmental responsibility. Scalability and economic efficiency Ammonia’s ability to integrate into existing industrial systems and infrastructure makes it highly scalable. Additionally, lower production costs due to advancements in renewable energy technologies make ammonia a cost-efficient solution for high-demand sectors like data centres. Storage versatility Renewable ammonia can be deployed both as a direct fuel source and as a storage medium for hydrogen. This dual-use capability translates into flexibility for data centre operators who require systems that adapt to fluctuating energy demands. A real-world proof of concept A techno-economic analysis conducted in a GHD West Texas case study evaluated an integrated system comprising 250 MW of on-site solar and wind generation and 140 MW of electrolysis capacity, designed to produce green ammonia to power an 80 MW behind-the-meter data centre². The system demonstrated strong performance, delivering an annual energy surplus of 278 GWh and a shortfall of just 88 GWh. After factoring in conversion losses, the model shows that it can meet total site continuous energy demands over 99.999 percent availability Importantly, the estimated levelised cost of electricity (LCOE) is $128/MWh today, with projections suggesting it could fall to $60/MWh as technologies mature, deployment scales and supply chains become more efficient. The key benefits of renewable ammonia systems include:
accelerating faster than the systems built to power them. Data centres - already among the most energy-hungry facilities on the planet - are scaling rapidly, yet many remain tied to outdated, emissions-heavy energy models.
Hassan Modarresi,
Senior Technical Director – Energy, USA
Consider the projections: in the US alone, data centre electricity use is forecast to surge by 160 percent by 2030 - adding approximately 650 TWh of demand and accounting for 8 percent of total national electricity consumption. Meeting this load will require an estimated USD 50 billion in new power generation, with 60 percent expected from natural gas and 40 percent from renewables¹. So, how do we power the future of AI? A new solution is emerging - powering data centres with on-site renewables and future fuels, including green ammonia. By integrating solar and wind generation with hydrogen electrolysis and ammonia storage, operators can create fully off-grid, low-carbon Ammonia and its derivatives have historically been used in agriculture and industry, but its role in energy is evolving quickly. When produced from green hydrogen and nitrogen via renewables-powered electrolysis, it becomes a carbon-free, storable fuel that can be cracked back into hydrogen or combusted directly in turbines or engines. Among the three main “future fuels” being explored for clean power - hydrogen, methanol and ammonia - ammonia offers a uniquely strong fit for data centres. Hydrogen delivers the highest efficiencies and near-zero emissions, particularly in fuel cells, but presents significant storage and handling challenges. Methanol, while offering slightly better combustion efficiency than ammonia, depends on access to biogenic carbon dioxide (CO₂) for synthesis, complicating its scalability. Ammonia strikes a powerful middle ground: moderate efficiency, near-zero CO₂ emissions and compatibility with existing infrastructure and technology pathways. It’s also scalable and transportable, with a far higher energy density than hydrogen alone which makes it ideal for distributed, high-demand facilities like data centres. systems which are resilient by design and ready for the AI era. Beyond the hype: why ammonia? 1. Goldman Sachs. Generational Growth in AI: Data Centers and the Coming US Power Surge, Generational Growth AI, data centers and the coming US power demand surge. 2023. 2. GHD. Ammonia as a renewable fuel solution for data centers, Ammonia as a renewable fuel solution for sustainable behind-the-meter data centers. 2025.
Tej Gidda, Global Leader, Future Energy
Ron Heffron, Vice President – US Hydrogen
Download Further explore the potential of ammonia as a renewable fuel for data centres in this whitepaper.
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