Averting the IT Energy Crunch

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On May 10, IBM (IBM) grabbed headlines with plans to invest $1 billion a year in products and services that will help reduce IT power consumption in data centers. By using new techniques, within the next three years IBM plans to double the computing capacity of its data centers—more than 8 million square feet worldwide—without increasing power consumption.

The Virtual Solution

Software company VMware, a subsidiary of EMC (EMC), has created software that lets companies reliably run multiple software programs on a single server through a process known as virtualization (see BusinessWeek.com, 2/9/07, "EMC's Billion-Dollar IPO").

By using one server in that manner, companies can significantly reduce the hardware in data centers. PG&E's Bramfitt says that just taking one server out of operation can save a company $600 to $1,200 per year in power and cooling costs. PG&E gives customers a rebate of $150 to $300 for every server they virtualize. It's working with the U.S. Postal Service. "We think they might go from 6,000 servers to 500," says Bramfitt. By using VMware software to consolidate servers, Solvay Pharmaceuticals has been able to save roughly $67,000 a year in heating and cooling costs.

Some companies such as Sun and HP are also consolidating data centers. Sun has been replacing older equipment with smaller, newer gear, so the company can fit more hardware into the same space. By upgrading some older systems in its Colorado data center with more energy-efficient equipment, Sun will save about $100,000 in energy costs per year, Douglas says.

HP has chosen to completely overhaul its data centers by taking 86 data centers and consolidating them into 6. The idea is to take the design used in that first center, with PG&E's advice, and apply it to the remaining five, the last of which will be built in 2008. HP has not only devised efficient cooling systems, but has paid close attention to other details such as room layout, more efficient power supplies, and power management software. With all this newfound knowledge, HP is helping other firms create energy-efficient data centers.

Alternative Energy to the Rescue?

Down the road, companies may even opt for alternative sources of energy to keep data centers cool. One small data center in Romoland, Calif., has figured out how to run on only alternative energy. "We use no electricity from the power grid," says Phil Nail, chief technology officer of Web hosting company AISO.net. The company operates its 2,000-square-foot data center with solar energy captured via ground-mounted solar panels. But right now alternative energy is not a viable option in most cases. "The day is not upon us when you'll see windmills on mission-critical facilities," says Energy Star's Fanara.

The folks at HP look forward to when that and any number of other methods for saving power do become realistic possibilities. In its bid to cut consumption by 2010—a drive that includes reducing product energy consumption 20%—HP is leaving no stone unturned. "This is going to be pretty darn aggressive," says John Frey, manager of corporate environmental strategies for HP. "A lot of this involves HP innovation that doesn't exist yet."

King is a writer for BusinessWeek.com in San Francisco .