Originally posted on Data Center POST

Power is the most important economic element for data centre operations. Without sufficient power, these facilities cannot grow to support the massive amounts of data processing and storage required in both the enterprise and hyperscale space today. Datalec Precision Installations (DPI), like many companies designing and constructing data centre space, has power availability and efficiency at the forefront of its mind. DPI must cooperate with the operator and other design and build contractors to ensure reliable and efficient power supply and management, which includes evaluating a data centres readiness for power disruptions and providing the best possible solutions for managing operating costs. 

As the cost of power continues to increase throughout Europe and indeed across the world, power management has become even more crucial in data centre operations given that some estimates argue that power costs could as much as double in the coming 18 months, which will require some very careful redesign. In Europe, data centre operations already account for a substantial amount of the total power consumption, which has led policymakers to encourage data centre operators to reduce power consumption and increase procurement of energy from renewable sources. This also brought about the Climate Neutral Data Centre Pact, under which data centre operators agree to become carbon neutral by 2030. 

For nearly 10 years DPI has worked tirelessly to provide customers with the most efficient possible power solutions. This continued focus on power when designing data centres ensures customers have a reliable, efficient and sustainable power supply with a comprehensive approach to power management as the energy market continues to evolve. 

How Do Rising Power Costs Affect Business?

Rising energy costs easily place a significant burden on data centres. Power costs can represent around two-thirds of a data centres cost base. If these operational costs were to increase by 100%, how would the ultimate client absorb the cost? Fundamentally it is the cloud service or MS365 user that needs ultimately to bear the burden of these price hikes.

If companies like Google or Amazon were to increase the cost to customers, is that a price the customers would continue to pay? If so, how would this affect their growth and valuation? These are important questions, yet difficult to answer. Still, as power is an immovable component within the data centre, to prepare for increasing costs they will need to evolve to keep up with the pace of this demanding industry.

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