The U.S. economy may be in its worst financial slump since the 1930s but consult any CIO and s/he will tell you that the data center industry is experiencing its greatest growth period ever. According to the Environmental Protection Agency (EPA), demand for data storage and processing has become so popular that it has more than doubled the amount of energy used nationally for this purpose over the past five years.
As a matter of fact, data centers alone account for 1.5% of our total energy usage. With this growth trend set to continue, the EPA estimates that the country’s electricity bill could reach $7.4 billion by 2011. What does this mean for most businesses? Increased energy and capital costs for a start. According to a recent study by Stanford professor Jonathan Koomey, computer servers already account for between 25 and 45 percent of most data centers’ budgets. However, as energy costs begin to play a larger role on companies’ profit and loss sheets, smart businesses are preparing for the future increase by improving operational efficiencies, adopting best practices and employing state-of-the-art technologies.
The Real Cost of Innovation
There is no doubt that the digital age has brought with it benefits that have proven irresistible to the business world: paperless offices, telecommuting, reduced staffing, greater security and accuracy and more visibility to name a few. However, while the rise in the use of electronic transactions and the internet is great news for enterprise, the downside of this technological boom is a staggering increase in energy costs, greenhouse emissions, capital expenses and strain on the nation’s existing power grid. And with a gloomy economic crisis looming and the federal government demanding that organizations be more accountable for their impact on the environment, a proactive approach to the energy crisis has become all the more imperative.
Strategies that Guard Against Price Hikes
Unless your company has the resources available for major facility renovations, your first step for reducing energy costs will be improving operational efficiency. While this is the most basic strategy for reducing energy costs, the results are nothing to sneeze at. Most businesses can shave up to 20% off their electricity bills by implementing simple management practices. By enabling power management tools, developing a comprehensive air management system and following the industry trend towards consolidation and virtualization, data centers can save huge amounts of money without sacrificing performance. The benefit of this plan of action is that it requires little or no capital investment. However, it is wise to prepare for more involved strategies in the future. The way to incur real savings is through a more widespread use of technologies and best practices.
IT departments that are in a position to take a more aggressive approach to energy-efficiency can reduce energy cost by up to 45%. Through the implementation of industry best practices such as the installation of improved transformers, uninterruptible power supplies, energy–efficient servers, chillers, fans, and pumps, they can address a multitude of challenges while still saving the company money. The added benefit of this approach is that it greatly improves performance and availability, while reducing costs. Cooling systems, for instance, account for 50% of data center use and yet their enhancement can eliminate hotspots and prevent equipment faults.
By far, the companies that will receive the most substantial energy cost savings are those in the position to employ the most efficient, state-of-the-art technologies. The uncompromising consolidation of servers and storage, direct liquid cooling and the combination of heat and power, along with other good management practices, can result in as much as 55% reduction in energy consumption. Besides the obvious cost benefits, data centers who take this approach have the added security of knowing that their investments will yield high results in other areas. This commitment to sound practices can not only boost operational efficiency and trim energy consumption, it can improve the center’s reliability and longevity in the long run.
Data Centers of the Future
Legislators are becoming increasingly interested in the effect that data centers will have on the environment and are considering enacting mandatory reporting of electricity usage and carbon footprints. In order to help organizations make informed decisions when purchasing data center equipment, the EPA is developing an Energy Star specification for this category. Many companies will continue to turn to outsourcing as a solution, trusting in their expertise and ability to consolidate resources effectively.
The time has come when considering the options available for data center optimization is necessary - not only for the sake of the environment but for the sake of the bottom line. Ultimately, businesses will be able to reduce their overhead in direct proportion to the time and money they invest in energy-efficiency. No matter what choice your company decides to make, whether to concentrate on operational efficiency, the use of best practices or cutting-edge technologies, both the planet and your business will be a better place for it.
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