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?