Sabey Data Centers is running a pilot at its Sabey Data Center Austin campus (SDC Austin) that uses hydrotreated vegetable oil, or HVO, as the primary fuel in its backup generators. The company announced the pilot on Oct. 30, 2026.
The aim is to find out whether HVO is workable for broader use across Sabey's portfolio. If the results support a move to the fuel, Sabey intends to expand testing at additional data center sites.
Why backup generators
Backup generators keep a data center running during power outages and emergencies. Sabey says their overall fuel consumption is limited, but they remain one of the harder sources of Scope 1 emissions to reduce. Scope 1 emissions are greenhouse gases released directly from sources a company owns or controls, including fuel burned in its generators.
What HVO is
HVO is a renewable diesel made by hydrotreating vegetable oils and waste fats, including used cooking oil. Sabey says it can run in existing diesel generators without engine modifications.
The climate benefit depends on what the fuel is made from. A 2022 peer-reviewed study by the U.S. Department of Energy's Argonne National Laboratory found that renewable diesel from waste-based feedstocks cuts lifecycle greenhouse gas emissions by 79% to 86% compared with petroleum diesel. Crop-based feedstocks delivered reductions of 40% to 69%. Because of that spread, Sabey's pilot will track the feedstock behind the HVO it burns.
What Sabey says
Casey Mason, Director of Energy & Sustainability at Sabey Data Centers, said the company has long held that "being a good neighbor is one of our most important responsibilities." He said Sabey needs reliable backup power but wants to explore how to reduce its environmental impact for the surrounding community, and called the pilot "one step" toward doing both.
Sabey describes itself as one of the largest privately owned data center developers and operators in the United States.
