Rolls-Royce, Microsoft Evaluate Hydrotreated Vegetable Oil for Data Center Power

Rolls-Royce Power Systems and Microsoft published a position paper evaluating hydrotreated vegetable oil (HVO) as a sustainable, alternative backup fuel for data centers in Singapore. The paper identifies and outlines several steps to full HVO adoption, in addition to other low-carbon fuels as replacements for fossil diesel in digital infrastructure.

“We believe that Singapore is well-positioned to lead the adoption of HVO with the right policy framework, infrastructure, and support,” said Tobias Ostermaier, President Stationary Power Solutions at Rolls-Royce Power Systems. “HVO is a practical step to decarbonize critical infrastructure and provides an immediately deployable lever to reduce emissions for the potential-rich data center 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.”

The paper identifies priorities like:

• Unification of standards
• Cost competitiveness
• Regulatory approvals
• Market development
• Partnerships across the supply chain
• Continuing research

“This paper underscores our commitment to fostering innovation in low-carbon energy sources,” said Kavickumar Muruganathan, Cloud ESG Planning Director, Microsoft APAC. “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. The collaboration highlights our resolve to lead the charge in decarbonizing at scale and promoting low-carbon fuels across the region.”

mtu Series 4000 genset using HVO | Image Credit: Rolls-Royce

Compared to fossil diesel, HVO can reduce lifecycle CO₂ emissions by up to 90%, adhering to Singapore’s Green Data Center Roadmap and 2050 net-zero targets. It is a high-quality, bio-based paraffinic fuel produced via waste, residual fats, and oils, applicable to current diesel generator infrastructure without technical modifications. HVO-approved systems offer an immediately deployable and decarbonized backup power generator.

“As the regional digital economy accelerates, data centers have become a critical growth driver for both Singapore and Asia,” said Giovanni Spadaro, President of Global Markets, 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 Center Roadmap. It is vital that we continue working with our partners, including Microsoft, to create the necessary conditions that can make this a reality.”

Backup Power in Luxembourg

In March 2025, the European Commission in Luxembourg contracted Rolls-Royce to supply two mtu Series 4000 generator sets (gensets) to provide emergency backup power at the Jean Monnet 2 building complex, which were installed by Energolux in early October 2024. Each DS2750 genset has a maximum output of 2,640 kVA, using diesel fuel to deliver electrical power during grid outage events.

The delivery of mtu-brand emergency gensets contributes to the European Union’s construction project, which is expected to be finalized in 2025. These backup power generators ensure that all essential and safety-related equipment inside the buildings, as well as technical systems, can operate uninterrupted in the event of an outage.