Cutting Data Centre Energy Demand  

The Wall Street Journal has an article on efforts to redcue energy consumption in large data centres, now being actively promoted by hardware companies like IBM and HP - Cutting Tech's Energy Bill.

International Business Machines Corp., Hewlett-Packard Co. and other big computer makers are spotting opportunity in customers' desire to curb electricity usage in large corporate data centers, where energy use has soared in recent years.

Rising electricity prices, coupled with new computer servers that run hotter and require more power, has corporate technology buyers looking for ways to cut back. Power use in data centers -- the large, climate-controlled rooms that house a company's computer servers, storage devices and communications switches -- doubled from 2000 to 2006 and now accounts for about 1.5% of U.S. electricity consumption, according to the Environmental Protection Agency. A recent McKinsey & Co. report says that world-wide, the centers' carbon emissions exceed those of Argentina.

Somewhat ironically, the companies that designed and sold those computers are now able to capitalize on the higher power bills the machines rack up.

IBM surprised Wall Street this year when it said its new "Green Data-Center Services" business -- which redesigns customers' data centers and sells energy-efficient products -- signed $300 million in orders in the 2007 fourth quarter. The company has declined to release figures for 2008.

IBM Chief Executive Samuel Palmisano recently told analysts that IBM expects more than 70% of the world's biggest companies "will modify their data centers significantly in the next five years" to deal with energy shortfalls and rising costs.