Rolls-Royce & Microsoft: HVO for Sustainable Data Centres
Rolls-Royce’s Power Systems division, in partnership with Microsoft, has published a comprehensive position paper that discusses the potential of Hydrotreated Vegetable Oil (HVO) as a low-carbon alternative for backup power in Singapore's data center sector.
The paper emphasises the role of HVO as an intermediary solution, aiming to reduce dependence on fossil diesel while more sustainable long-term alternatives are still being developed.
What is HVO?
Derived from waste and residual fats and oils, HVO offers up to a 90% reduction in lifecycle CO₂ emissions when compared to standard diesel fuels. Its compatibility with existing diesel generators - which requires only that systems be HVO-approved - eliminates the need for extensive infrastructure modifications. This makes it a practical choice for data centers seeking immediate emissions reductions.
The adoption of HVO aligns closely with Singapore’s Green Data Centre Roadmap (GDCR), guiding sustainable advancement in one of the world’s most energy-hungry digital environments.
For operators, HVO represents a solution readily implementable to lessen emissions from standby power sources.
Fostering an ecosystem for sustainable growth
The position paper articulates several key priorities necessary for broader acceptance, such as standard harmonization, regulatory simplification, cost feasibility, fortified supply chain partnerships, along with ongoing research and innovation. These elements are deemed crucial for unlocking HVO's market potential in Singapore.
“We believe that Singapore is well-positioned to lead the adoption of HVO with the right policy framework, infrastructure and support,” says Tobias Ostermaier, President Stationary Power Solutions at Rolls-Royce Power Systems.
“HVO is a practical step to decarbonise critical infrastructure and provides an immediately deployable lever to reduce emissions for the potential-rich data centre sector. What’s needed now is a clear regulatory framework to support the use of sustainable fuels like HVO, which will enable planning certainty and investment confidence.”
Transforming Asia’s data center landscape
Singapore’s burgeoning role as a hub for data center development and its position as a digital economy leader in Asia make it an ideal testing ground for sustainable innovations like HVO.
However, the sector’s considerable energy demand has placed pressure on operators and policymakers to identify viable sustainability pathways.
“As the regional digital economy accelerates, data centres have become a critical growth driver for both Singapore and Asia,” says Giovanni Spadaro, President, Global Markets at Rolls-Royce Power Systems.
“Rolls-Royce Power Systems is committed to unlocking its potential via carbon-efficient fuel solutions. This can serve as a sustainable source of power that provides growth and is aligned with key national goals such as the Green Data Centre Roadmap.
“It is vital that we continue working with our partners, including Microsoft, to create the necessary conditions that can make this a reality.”
Microsoft's role in low-carbon initiatives
Microsoft's pledge to become carbon-negative by 2030 dovetails with its support of the Rolls-Royce collaboration within its broader cloud sustainability strategy.
Data centers, which form the backbone of Microsoft’s global cloud services, are integral to its emissions-reduction efforts.
Kavickumar Muruganathan, Cloud ESG Planning Director at Microsoft APAC, says: “This paper underscores our commitment to fostering innovation in low-carbon energy sources. By aligning with Microsoft’s global 2030 sustainability ambitions, we are dedicated to driving solutions that not only meet our current energy needs but also pave the way for a carbon-negative future.
“Our collaboration in this highlights our resolve to lead the charge in decarbonising at scale and promoting low-carbon fuels across the region.”
Collaboration for a sustainable future
The position paper makes it clear that while the world continues to pursue renewable power and longer-term solutions like hydrogen, transitional fuels like HVO offer a critical bridge.
Singapore’s commitment to sustainable energy strategies is acknowledged, and Rolls-Royce’s collaboration with Microsoft constitutes a call for regulatory frameworks to support HVO’s broader adoption.
For operators who need to reconcile burgeoning demand with sustainability imperatives, embracing low-carbon fuels emerges as a necessary and feasible path to marry growth with environmental stewardship.
