According to the U.S. Dept. of Energy, data centers consume around 2% of the total U.S. electricity and use 10 to 50 times more energy per square foot than typical commercial buildings.
This power consumption, and its projected growth, have triggered responses from governments across the world with regulations to curtail energy use. Data center operators, recognizing the importance of sustainability, should move quickly to comply with these rules and even stay ahead of them by taking the big step of self-regulating their energy consumption.
That’s the argument we take in an article published in 7×24 Fall Magazine that we’re summarizing in this blog post (7×24 members can click here for article access; non-members can email Albireo Energy for a copy).
Why Self-Regulation Makes Sense
Energy self-regulation is a proactive approach that helps operators avoid penalties and leverage financial incentives, with a number of intangible benefits including positioning themselves as sustainability leaders in the industry.
There are numerous reasons data centers should embrace self-regulation:
- First and foremost, it helps maintain regulatory compliance avoiding stiff financial penalties that states and the federal government are enacting for non-compliance to carbon reduction goals.
- Second, financial incentives are available for data centers that meet energy efficiency standards early. For instance, the New York State Energy Research and Development Authority (NYSEDA) offers millions in funding for applicants with clear energy management plans. These incentives can help offset the costs of upgrading equipment and technologies.
- Third, self-regulation also can provide a significant competitive advantage. By improving energy efficiency, data centers not only reduce operating costs but can also be more likely to attract tenants who value environmentally friendly operations and are willing to pay a premium for it.
Best Practices for Energy Self-Regulation
To successfully self-regulate, data centers must adopt key best practices to enhance energy efficiency and stay ahead of environmental compliance regulations:
- Energy Benchmarking: Monitoring energy consumption is essential for meeting efficiency targets. Tools like the ENERGY STAR® Score for Data Centers can help owners track and benchmark their energy use, setting the foundation for improvements.
- Stay Informed: Organizations like ISO 50001 provide frameworks for energy management, helping data center operators develop energy-efficient policies, set goals, and make data-driven decisions to optimize energy usage.
- Conduct Energy Audits: Regular energy audits reveal opportunities for improving efficiency and reducing consumption. By proactively performing these audits, data centers can identify where to upgrade systems or introduce new technologies.
- Adopt Renewable Energy: Transitioning to renewable energy sources such as solar and wind power is critical. Companies can also purchase Renewable Energy Credits (RECs) to support their sustainability goals.
- Embrace Innovation: From thermal optimization strategies to efficient IT equipment and building automation systems (BAS), investing in technology to improve energy use is a strategic imperative. For instance, optimizing airflows and IT loads can significantly reduce energy costs, while BAS and programmable logic controllers (PLCs) help automate energy management, reducing failures and ensuring efficient operations
By implementing these best practices, data centers can turn regulatory challenges into business opportunities. Energy-efficient practices not only drive cost savings and operational improvements but also provide a competitive edge as data center operators prepare for future regulations.
Energy Self-regulation Offers a Sustainable Future for Data Centers
As energy costs continue to rise and regulations become more stringent, data centers must take a proactive approach to energy management.
Self-regulating by adopting best practices not only ensures compliance with current and future regulations but also drives significant cost savings, enhances competitiveness, and positions data centers as leaders in sustainability.
By embracing renewable energy, optimizing operations, and leveraging advanced technologies, data centers can transform environmental challenges into business opportunities.
For those looking to dive deeper into the strategies and technologies available for staying ahead of environmental compliance, the full article provides more detailed insights. Contact Albireo Energy to get access to the complete article and learn more about how your data center can implement sustainable energy practices to stay ahead of the compliance curve.
