Visibility and Maximising the Efficiency of Data Centre Power Consumption
Think of any process or service today, and chances are that it relies on electricity. More critically, electricity powers the data centres that are the backbone of our ever-growing digital footprint. However, escalating energy costs, increased dependency on power, and growing awareness about the need to reduce emissions are forcing a change in power management.
Let’s look at these challenges individually. Data centres consume vast amounts of electricity to power servers, networking equipment, and cooling systems. The International Energy Agency (IEA), for example, estimates that data centre power usage could soar from 460 terawatt-hours (TWh) in 2022 to over 1,000 TWh by 2026.
This is a particularly urgent matter for regions where renewable energy generation is limited. KPMG, for example, finds that Singapore continues to grapple with water scarcity. Meanwhile, a Cushman & Wakefield report finds that land scarcity is also a concern – placing the country as the most expensive for land cost. Taken together with the rapid increase in power consumption from data centres, this can further delay or complicate efforts to transition to sustainable energy sources.
Growing Reliance on Power
With the digital transformation of nearly all businesses, cloud services from multiple vendors are being tapped into by organisations. This shift has led hyperscaler and colocation providers to consume electricity on a large scale to deliver essential digital services. That need to accommodate compute-intensive workloads has contributed to the increase in high-density racks. A survey by the Uptime Institute indicates that nearly a third of respondents are witnessing significant increases in rack power density due to advancements in silicon power and new high-powered server processors.
The Emissions Problem
Globally, according to data from think tank Ember, fossil fuels account for 60% of electricity generation. And the sustainability factor is driving infrastructure and data centre operators to seek out means to improve power consumption. The motivations for this are also broader than the impact it has on the climate, as insights into power consumption can guide future construction and equipment purchases, optimise operations, and implement appropriate billing strategies.
These newfound benefits would allow cloud service providers to offer a wider range of services and pricing options. That enhances market competitiveness. Customers, on the other hand, can opt for low- or zero-emission cloud services that support sustainable business growth.
Enhancing Efficiency
In 2025, it is predicted that data centres will prioritise energy availability challenges as overextended grids and skyrocketing power demands are changing how data centres consume power. Globally, data centres use an average of 1-2% of the world’s power, but AI is driving increases in consumption that are likely to push that to 3-4% by 2030. Visibility is crucial to efficiency. Having visibility of an organisation’s power consumption is essential as data centres look to prioritise energy efficiency and sustainability even more than they have in the past. But that rests on comprehensive energy management, where the necessary data is available and leaders can develop strategies for decarbonisation, comply with regulations, and report to stakeholders. This requires an effective system that offers insights to benchmark performance and track improvements, allowing clients to report on emissions in their sustainability efforts.
Raising Agility via Customisable Solutions
Data centre operators need a flexible energy management system which deliver the infrastructure required for software and digital services. This encompasses operational controls, asset management software, and monitoring tools, all designed to facilitate digital services. Additionally, their teams need the ability to access a range of services, from anomaly detection to remote monitoring and troubleshooting.
Likewise, clients of these data centre operators will want to have the opportunity to customise their power management solutions to meet specific needs. With many organisations accelerating digital transformation, this offers them the option for future expansions.
This level of adaptability and integration between hardware and software from various providers, offers a comprehensive solution for those looking to streamline their operations and achieve cost efficiencies.
As the demand for digital services continues to surge globally and regionally, data centre operators must embrace innovative energy management strategies to address the dual challenges of escalating power consumption and sustainability. By investing in visibility, adaptability, and comprehensive energy solutions, businesses can optimise power usage, minimise emissions, and ensure operational resilience in 2025 and beyond.
