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Elizabeth Cutright Elizabeth Cutright Distributed Energy Editor

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DE Editor's Blog

April 6th, 2009 1:10pm PST

Behavior Modification

Posted By Elizabeth Cutright Comments

We all know data centers are energy-intensive enterprises, comprising almost 2% of all US energy consumption. According to a 2006 report by the EPA, data centers use approximately 61 billion kWh. That translates into a total consumption cost of $4.5 billion. As we continue to transform ourselves from a paper-based to digital society, data centers—which are the backbone of our information infrastructure—will continue to grow in size and importance; and with that growth comes a responsibility to develop and maintain energy-efficient protocols whenever possible. 

And for data centers, energy efficiency may be the most economical way to thrive—and perhaps even just survive—as we shift towards a new national energy policy. It’s still unclear what changes will be wrought by this new presidential administration, but right out the gate data centers have found themselves in the cross-hairs of President Obama’s cap-and-trade energy plan. The cap-and-trade program has the potential to up the ante for data centers, as their operators find themselves paying cold hard cash to mitigate greenhouse gas emissions.

The basics behind the cap-and-trade scheme involve increased costs for power generators that do not utilize clean energy sources. Overall carbon dioxide emission will be “capped,” and any company exceeding those emission limits will have to bid on permits to allow them to continue to operate, thus paying an indirect tax on their inefficient energy systems. The idea is that eventually the pool of available permits will begin to decrease, triggering higher bids and, thereby, increasing energy costs. Ultimately, the hope is that rising expenses will prod under-performing utilities to decrease emissions by switching to renewable sources and increasing the efficiency of their power systems. Because it appears likely that utilities will pass along their operating costs to customers, data centers—with their high-energy demand—will bear the brunt of higher energy bills. 

Data center operators are already looking for ways to mitigate the impact of the cap-and-trade program by comparing operating costs by state. For example, Chicago, IL—which relies heavily on coal—could find itself at a disadvantage when compared to New York City, NY, where nuclear power is readily available. Virginia, another coal-dependent state, may have to contemplate a switch in allegiance if it finds itself competing with states like Nebraska, where the Omaha Public Power recently announced plans to generate 10% of its electricity from renewable sources by 2020, including wind power. Cloud-computing vendors—like Google Inc. and Microsoft—are already contemplating facilities in areas with local clean energy power sources like the Tennessee Valley Authority, which uses hydropower.

So far, the focus has been on the indirect effect of cap-and-trade regulations, but there is some anticipation that regulations could be developed to specifically target data centers’ energy usage. There is some question as to whether any new rules would apply only to commercial data centers (which generally offer hosting, collocation, and disaster recovery) or would extend to corporate data centers as well. What do you think? Is this sort of indirect energy-use tax the best way to influence behavior and encourage efficient energy use? Or is there a better way?

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