Sabey starts HVO backup generator pilot at Austin campus

By Marcus Bennett

Sabey Data Centers is piloting 100% waste-based HVO in backup generators at its SDC Austin campus in Round Rock, Texas, where Sabey expects 84MW of capacity across two buildings.

The US data center operator has begun testing hydrotreated vegetable oil as the primary fuel source for backup generators at its Austin facility. The trial will assess how HVO performs under real-world operating conditions. If the results establish feasibility, Sabey intends to extend its use to additional sites across the company’s data center portfolio.

HVO is a low-carbon fuel derived from 100% waste-based feedstock. It acts as a drop-in substitute for conventional diesel, and many diesel generators can run it without major modifications. The mechanism is direct fuel substitution: Sabey is evaluating HVO in backup-power service, where many diesel generators need no major modification to accept the alternative fuel.

What does the HVO pilot change for Sabey’s backup power?

Operationally, the pilot changes the fuel supplied to the Austin generators. It does not yet change fuel use across Sabey’s portfolio. Because HVO is a drop-in diesel substitute, the immediate test centers on real-world performance in many existing generator applications, rather than a major equipment conversion.

Reliability remains the central operating requirement. Sabey says it needs dependable backup power while seeking to reduce the environmental impact of that power on surrounding communities. The company has set no date for a wider rollout, so expansion remains contingent on the Austin results and a subsequent decision.

“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.”

Casey Mason, Sabey’s director of Energy & Sustainability, made that point as he described the company’s approach to the pilot.

“As technology evolves and the need for digital infrastructure grows, it’s our responsibility to continue finding better ways to operate. We need reliable backup power, but we also want to explore how we can reduce its environmental impact for the surrounding community. This pilot is one step toward understanding how we can do both.”

The campus context gives the trial additional operating significance. Sabey first announced the SDC Austin data center campus in early 2022. It launched the first phase in Round Rock in October 2024. The company broke ground on the second phase in 2025. Sabey expects the completed facility to have 84MW of capacity across two buildings.

The project therefore combines a new fuel test with a campus still moving through development. A successful result could support deployment at further Sabey locations, turning an Austin operating trial into operating evidence for backup-fuel decisions across a wider portfolio. Sabey has not disclosed the number of participating generators, HVO consumption, testing schedule, cost comparison or quantified emissions reduction.

Several data center companies have already deployed or piloted HVO. In the most recent example cited, Bridge DC and renewable fuels firm EcoCeres completed a pilot in May at Bridge’s data center campuses across the Asia-Pacific region.

AWS in Sweden, Vantage in Wales and Stack Infrastructure in Norway have adopted HVO for backup generators in recent years. The geographic spread gives operators a wider set of examples when evaluating the same backup-fuel change, although Sabey’s announcement offers no comparative performance or cost data from those sites.

For Sabey, the immediate market signal will come from the pilot’s operational findings and any decision to expand. The stated next step is clear: assess HVO under live conditions, then determine whether the fuel can move from one Austin pilot to a broader role across Sabey’s backup-generator fleet.