This policy brief includes multiple strands of research. The first focuses on the environmental sustainability of data centers, while the second encompasses both empirical and theoretical studies on green public procurement (GPP). 

Data centers are critical to the digital economy but are highly energy-intensive, hence raising environmental concerns. We show using qualitative as well as quantitative methods that operators invest in energy efficiency, renewable energy, and circular economy practices, such as reusing and recycling equipment.

 However, progress is uneven, with challenges in adopting renewable energy due to reliability demands and limited implementation of comprehensive sustainability measures like Life Cycle Assessments (LCAs). Our findings also show that some companies effectively communicate their sustainability efforts, though most provide limited transparency: they prioritize security, energy efficiency, and connectivity in data center design, with sustainability considered secondary but increasingly important. 

Our research suggests that policymakers should collaborate with industry stakeholders to promote transparency, incentivize renewable energy and enforce stricter recycling measures. The effort should be directed toward balancing environmental sustainability with operational reliability. The research on GPP empirically investigates two main strands: the dynamics of procurement scoring mechanisms and the impact of environmental laws on procurement processes and outcomes. 

The University of Padua (UNIPD) focuses on evaluating the balance between price and quality in public procurement tenders using a novel AI-driven methodology. Researchers analyzed an extensive dataset of Italian procurement contracts. 

Initial findings reveal a systemic preference for cost over quality in procurement scoring, with price accounting for 64% of the scoring weight. This bias suggests potential inefficiencies in achieving sustainability goals. By emphasizing quality more in scoring mechanisms, policymakers can incentivize greener and more sustainable procurement practices. 

The introduction of Criteri Ambientali Minimi (CAM), mandatory environmental criteria for certain procurement categories, has raised reserve prices and reduced winning rebates, suggesting increased costs for public buyers. The criteria may also affect competition by slightly decreasing bidder participation, though the impact varies by category. 

Our findings highlight the importance of balancing environmental goals with maintaining competition and cost efficiency in procurement. Complementary research by UNITORV examines the role of SMEs in public procurement, particularly in leveraging the Legality Rating (LR) system to enhance transparency and competitiveness. 

Our results indicate that SMEs with an LR are significantly more likely to win procurement contracts, demonstrating the system's potential to support smaller firms' participation in public tenders. However, barriers such as revenue thresholds may inadvertently disadvantage smaller firms. 

Policy implications include the need for recalibrating procurement-scoring weights to emphasize quality, exploring mechanisms to offset CAM-related cost increases, and supporting SMEs through alternative certification mechanisms. 

The study by Carannante, Pagnozzi, and Sartori (2024) analyze the design of GPP processes when the public authority has private information about one of the bidding firms. The analysis reveals how public authorities can strategically adopt procurement mechanisms to minimize costs, depending on their information about bidders. 

The research also shows that, among all standard auctions, first-price auctions minimize the variability of interim costs, making it the safest option for risk-averse authorities. These insights offer valuable guidance for designing public procurement policies that effectively take into account the authority’s private information, ensuring cost efficiency and reduced financial risk.