Sabey Data Centers is testing renewable diesel in emergency backup generators at its Austin-area campus in Round Rock, Texas, as the operator looks to reduce direct emissions without sacrificing reliability. The company announced the hydrotreated vegetable oil (HVO) pilot on October 29, 2026.

The fuel is being evaluated as a replacement for petroleum diesel in standby generators, not as the source of electricity used to run servers every day. Sabey said it will measure performance under operating conditions before deciding whether to expand testing to other facilities. Its announcement did not disclose the pilot’s fuel volumes, generator count, supplier or completion date.

Testing an alternative to conventional diesel

HVO is produced by processing oils and fats, including used cooking oil, into a renewable diesel fuel. It can work in compatible existing diesel-generator systems without engine modifications.

Sabey markets its Round Rock campus for up to 84 megawatts of critical IT load across two buildings, with 2.25 MW generator units and 48-hour peak-load backup capability. The 84 MW figure describes marketed campus capacity, not proof that the entire development is currently energized.

Archived 2025 footage from Sabey shows construction of its second Austin data-center building; the video does not depict the HVO pilot.

Climate benefits depend on how the fuel is made

Backup-generator combustion produces direct, or Scope 1, emissions. Sabey cited a 2022 Argonne National Laboratory lifecycle study reporting greenhouse-gas reductions of 79%–86% for waste-derived renewable diesel compared with petroleum diesel, while crop-derived feedstocks produced smaller estimated reductions of 40%–69%. Those figures are lifecycle comparisons, not measurements from Sabey’s Austin pilot.

Feedstock sourcing and processing affect the fuel’s carbon footprint. Sabey says it will track the feedstock behind the HVO purchased for the test. Burning renewable diesel also does not eliminate tailpipe emissions, so local air-pollutant performance requires separate evaluation.

The Electric Power Research Institute has separately conducted a Texas field demonstration comparing HVO and conventional diesel in a 2 MW data-center backup generator. Its findings are not Sabey’s.

A March 2026 IBEW Hour Power report tours Sabey’s Round Rock campus and describes its electrical infrastructure. This is contextual footage, not a recording of the fuel trial.

What happens next

Sabey says broader adoption depends on results from the Austin pilot, suitable operating conditions and reliable access to fuel. Changing the standby fuel would address one portion of its operational emissions, not the electricity supply serving the campus. The company has not announced a portfolio-wide conversion or a quantified emissions reduction from this particular test.

BitcoinVersus.Tech — Independent coverage of data centers, energy, computing infrastructure and Bitcoin mining.

Editor’s Note: We volunteer daily to ensure the credibility of the information on this platform is Verifiably True. If you would like to support our work and help further secure the integrity of our research initiatives, please scan the QR code below to donate 5,000 sats.

On mobile, save or screenshot the QR image, then use your Bitcoin wallet’s scan-from-photo option if available. Otherwise, open the QR on a second screen and scan it with your phone.

BitcoinVersus.tech is not a financial advisor. This media platform reports on financial subjects purely for informational purposes.