Navigating sb 253: What California’s New Law Means for Data Centers 

Steve Lewis, who heads up the EkkoSense operation across the United States, shares guidance for data center operators tasked with addressing the new California sb 253 law and ESG reporting.

California is setting the stage for a global shift in corporate responsibility. The state’s recent approval of Senate Bill 253 (sb 253) showcases its commitment to sustainability and encourages companies globally to reassess their approach to corporate accountability. The regulation also opens the door to a new level of transparency in how businesses disclose their environmental impact. These policies are especially impactful for data centers, whose power consumption in the U.S. is set to reach 35GW by the end of the decade, almost double the amount they use today.  

The Requirements of sb 253 

sb 253, also known as the Climate Corporate Data Accountability Act, mandates that businesses operating in California report their Scope 1, 2, and 3 greenhouse gas emissions. Starting with data collected in 2025, these disclosures will begin in 2026 for Scope 1 and 2 emissions, with Scope 3 emissions due the following year. Scope 1 emissions are direct emissions from a company’s activities, Scope 2 covers indirect emissions from purchased energy, and Scope 3 includes all other indirect emissions across the supply chain.  

Global Implications of sb 253 

Research from data management firm ESG Book shows that ESG regulation has increased by 155% over the past decade. This significant rise reflects the heightened emphasis on sustainability-oriented policies. As the fifth-largest economy in the world, California’s climate policies play a significant role in the global economy, and its laws are expected to influence business strategies locally and nationally. Because of this, companies around the world are encouraged to modify their practices in accordance with these regulations. 

Challenges for Data Centers 

Data centers play a key role in the digital economy, and they face distinct challenges under the new regulations. Many businesses still rely on spreadsheets to manage data, which may not meet the precision and traceability standards demanded by contemporary ESG reporting guidelines. This outdated approach can strain resources and time, particularly when dealing with the intricacies of regulatory structures such as sb 253 and the Corporate Sustainability Reporting Directive (CSRD).  

EkkoSense Can Help Meet sb 253 Standards 

In the face of these difficulties EkkoSense emerges as a frontrunner in improving data center efficiency.  Our AI-powered optimization software, EkkoSoft Critical, offers a robust solution by providing intuitive dashboards that simplify the management of thermal, power, and capacity across entire data center portfolios. This innovative tool streamlines complex tasks, automating the creation of ESG and sustainability reports, which saves both time and resources compared to outdated methods. Video Tech Tip “Simple, easy-to-use ESG data center reporting is just a minute away with EkkoSense” here.

The latest release of EkkoSoft Critical 8.0 goes further by integrating real-time data, empowering data centers to make informed decisions that drive sustainability. This not only ensures compliance with evolving regulations, but also transforms the reporting process into a proactive and engaging aspect of data center operations. 

EkkoSense’s commitment to innovation in the data center industry has not gone unnoticed. EkkoSense is acknowledged as an industry leader with recent award recognitions including:

• Datacloud Global Awards – Sustainable Data Center Project

• DCS Awards 2024 – Data Center Sustainability Project of the Year

• Green Business Awards 2024 – Low Carbon Industrial Project of the Year

• The CLOUD Awards 2024 – Best Environmental or ‘Green’ Use of the Cloud

With the EkkoSoft Critical release, data centers are better equipped than ever to navigate the demands of today’s sustainability landscape while maintaining operational excellence.

Navigating sb 253

As California takes the lead in climate accountability, the ripple effects are felt worldwide. For data centers, adapting to these changes is not just about compliance; it’s about seizing the opportunity to innovate and lead in sustainability. By improving reporting standards and investing in energy efficiency, data centers can play a pivotal role in the global effort to combat climate change. California’s sb 253 is a call to action for the data center industry. Watch the instant free demo to discover how EkkoSense is here to support your sustainability journey or contact me to discuss your personal ESG reporting challenges. [email protected]