Could Vegetable Oil Power a Cleaner Digital Future? Sabey Data Centers is Finding Out.

(Sabey Data Centers) Pilot at Sabey Data Center Austin tests renewable diesel as a drop-in replacement for conventional diesel in backup power targeting one of the hardest-to-reduce sources of Scope 1 emissions in data center operations.

Sabey Data Centers is piloting hydrotreated vegetable oil (HVO) use in backup generators at its Sabey Data Center Austin (SDC Austin) campus to explore how renewable diesel alternatives could reduce the environmental impact of data center operations while maintaining mission-critical infrastructure reliability. HVO is being tested as the primary fuel source in data center backup generators to determine feasibility for broader use across Sabey Data Centers.

The importance of finding multiple new pathways to operate data centers more sustainability grows as the need for digital infrastructure expands. For the communities surrounding these facilities, the question is not simply how to power the technology of tomorrow, but how to do so responsibly today.

Backup generators play an important role in maintaining data center reliability, serving as a safeguard during power outages and emergencies. While their overall fuel consumption is limited, backup generation remains one of the more challenging sources of Scope 1 emissions, or greenhouse gases released directly from sources a company owns or controls, including fuel burned in backup generators.

Data centers support the digital services that people and businesses rely on, but they also have an environmental footprint. By exploring alternatives to conventional diesel, Sabey is looking for practical ways to reduce that footprint without compromising the reliability of its operations. HVO is a renewable diesel made by hydrotreating vegetable oils and waste fats, including used cooking oil, and can be used in existing diesel generators without engine modifications.

A 2022 peer-reviewed study by the U.S. Department of Energy's Argonne National Laboratory found that renewable diesel made from waste-based feedstocks cuts lifecycle greenhouse gas emissions by 79% to 86% compared with petroleum diesel, with crop-based feedstocks delivering reductions of 40% to 69%. Sabey's pilot will track the feedstock behind the HVO it burns, since fuel origin determines the climate benefit.

The significance of the Sabey HVO initiative extends beyond the generators currently being tested in Austin. By evaluating how HVO performs under real-world operating conditions, Sabey is exploring the potential for lower-carbon backup generation fuels across its broader data center portfolio where fuel availability and operating conditions allow. If the pilot proves successful, Sabey intends to expand testing at additional data center sites.

"For more than 50 years, Sabey has been building and operating infrastructure with the understanding that being a good neighbor is one of our most important responsibilities," said Casey Mason, Director of Energy & Sustainability at Sabey Data Centers. "As technology evolves and the need for digital infrastructure grows, it's our responsibility to continue finding better ways to operate. We need reliable backup power, but we also want to explore how we can reduce its environmental impact for the surrounding community. This pilot is one step toward understanding how we can do both."

About Sabey Data Centers
Sabey Data Centers is one of the largest privately owned data center developers and operators in the United States, providing reliable, energy-efficient infrastructure for leading technology, financial, and healthcare organizations. Building on Sabey Corporation's more than 50-year legacy, the company combines operational excellence with a commitment to environmental responsibility and the communities it serves. Through sustainable innovation, responsible resource management, and long-term community engagement, Sabey strives to support the growing digital economy while remaining a good neighbor in every community where it operates. For more information, visit www.sabeydatacenters.com. READ MORE

Excerpt from Baxtel: Sabey first announced the Austin campus in early 2022. The company redeveloped the former Sears call center at 1300 Louis Henna Boulevard. Sabey completed the first 213,000-square-foot building in fall 2024, according to the City of Round Rock.

The second building broke ground in 2025, and the campus is planned for 84MW and 430,000 square feet. The site hosts Horizon, the National Science Foundation's largest academic supercomputer for open-science research, deployed by the Texas Advanced Computing Center. Design firm Corgan says the buildings support liquid cooling at up to 200 kilowatts per cabinet.

Other operators have moved on HVO as well. Bridge DC and renewable fuels firm EcoCeres completed an HVO pilot across Bridge's Asia-Pacific campuses in May. AWS in Sweden, Vantage Data Centers in Wales, and Stack Infrastructure in Norway have also adopted the fuel for backup generators, Data Center Dynamics reported.

Baxtel lists 100 data center facilities across 37 providers in the Austin market, where 28 sites are under construction. If the pilot results support a transition to HVO, Sabey intends to expand testing at additional data center sites. READ MORE