Sabey Data Centers Pilots Renewable Diesel in Austin Backup Generators to Cut Scope 1 Emissions

Sabey Data Centers is testing hydrotreated vegetable oil as the primary fuel in backup generators at its Austin campus, the company said on October 30, 2026, in a pilot aimed at one of the harder-to-reduce sources of Scope 1 emissions in data center operations. PR Newswire carried the announcement.

Inside the Austin HVO Pilot

Sabey is a privately held multi-tenant data center operator offering colocation, build-to-suit and liquid-cooled AI-ready infrastructure across U.S. campuses. The pilot at Sabey Data Center Austin tests HVO, a renewable diesel made by hydrotreating vegetable oils and waste fats including used cooking oil, as a drop-in replacement that runs in existing diesel generators without engine modifications.

Backup generators serve as a safeguard during outages and emergencies, and while their fuel consumption is limited, the company describes backup generation as one of the more challenging sources of Scope 1 emissions, meaning greenhouse gases released directly from sources a company owns or controls. Sabey's pilot will track the feedstock behind the HVO it burns, since fuel origin determines the climate benefit. 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, while crop-based feedstocks deliver reductions of 40% to 69%.

"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. "This pilot is one step toward understanding how we can do both." If results support a transition to HVO, Sabey intends to expand testing at additional data center sites where fuel availability and operating conditions allow.

Sabey's Capacity Behind the Test

According to akta.pro company records, Sabey operates 380 megawatts of critical capacity across six campuses, with Austin accounting for 84 MW. The company launched SDC Austin Building B in July 2025, expanding the Round Rock campus by 603,300 square feet and 84 MW targeting hyperscale and enterprise tenants in the central U.S. The same records list a January 2025 partnership with TerraPower to develop plans for deploying advanced nuclear power at Sabey facilities.

How Other Operators Are Adding Power

Nebius Group received its first activated fuel cell power block from Bloom Energy at its 300 MW New Jersey data center, Yahoo reported on October 25, 2026. Heatmap News reported on October 22, 2026, that Net Power abandoned its zero-emission oxy-combustion technology and acquired 123 MW of Wärtsilä reciprocating engines to co-locate with a data center. Hart Energy reported on October 21, 2026, that NextEra Energy plans to add new natural gas-fired generation to meet data center demand.

What Comes After the Austin Test

Sabey said it intends to expand HVO testing at additional data center sites if the Austin pilot results support a transition, subject to fuel availability and operating conditions. The company's own announcement describes the pilot as a step toward determining feasibility for broader use across Sabey Data Centers.