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The tech industry is waking up to the need for greener data centers, but how much money can be saved through better energy-saving practices? A report out today from the Environmental Protection Agency says that $4 billion in annual electricity costs could be saved through more […]

The tech industry is waking up to the need for greener data centers, but how much money can be saved through better energy-saving practices? A report out today from the Environmental Protection Agency says that $4 billion in annual electricity costs could be saved through more energy efficiency in U.S. data centers.

This equals a major opportunity for startups that can help make IT equipment and the heating and cooling infrastructure more efficient. Companies like VMware that are focusing on virtualization have been growing rapidly.

The EPA’s 133-page “Report to Congress on Server and Data Center Energy Efficiency” examines trends in data center energy use and suggests ways to improve energy efficiency. It’s chock full of stats pointing out the inefficiencies and power-hogging practices of U.S. data centers.

Here are some key findings:

  • Data centers consumed roughly 60 billion kilowatt-hours (kWh) in 2006, or about 1.5 percent of total U.S. electricity consumption.
  • The energy consumption of servers and data centers has doubled in the past five years and is expected to almost double again in the next five years to more than 100 billion kWh, costing about $7.4 billion annually.
  • Federal servers and data centers by themselves account for about 6 billion kWh (10 percent) of that electricity use, which costs about $450 million per year.
  • There are existing technologies that can reduce server energy use by an estimated 25 percent, and newer technologies will only add to that efficiency.
  1. [...] Data Centers could save $4 billion, says EPA. To us that spells opportunity for start-ups. Continue Reading. Share This | Sphere | Print Posts | Topic: Shorts [...]

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  2. It may be an even bigger opportunity for the datacenter heavyweights – take a look at IBM eating their own dogfood to prove this:

    http://www.eweek.com/article2/0,1895,2164958,00.asp

    Cisco just announced an effort at Networkers the otehr day to get into the game as well.

    r.

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  3. Rob, Thanks, good point.

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  4. What could software companies do as new startups to help lower the energy? I see how some hardware companies could help the planet and make money, but not sure how a software company could help out.

    Share you startup stories
    http://startupflames.com

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  5. [...] center efficiency is a hot topic these days, and for good reason. Last week the EPA released a report that said $4 billion in annual electricity costs could be saved through more energy efficiency in U.S. data centers. The report also noted that data [...]

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  6. [...] new black. InfoWorld reports that tech companies are going green. About time. Also, the EPA report on data centers energy [...]

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  7. [...] by cutting down on data center energy consumption could reach $4 billion annually in the U.S., according to a report out earlier this month from the Environmental Protection Agency. Cisco Systems and Intel Corp., are both investors in VMware, indicating their faith in VMware [...]

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  8. [...] an added incentive. The real savings will come with the reduction of a company’s energy bill. A report from the Environmental Protection Agency says that $4 billion in annual electricity costs could be saved through more energy efficiency in [...]

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