What to know about data center energy consumption

This guide breaks down what's driving data center energy usage, practical solutions that work, and innovations making a real difference. You'll get actionable insights, benchmarks, and guidance to help control costs while meeting sustainability goals.

What is data center energy consumption?

Simply put, data center energy consumption is all the electricity flowing through your facility to keep digital operations running. This includes power for your servers, storage arrays, network gear, cooling equipment, power distribution systems, and everything else needed for continuous operation.

Your energy profile depends on several factors: facility size, infrastructure design, computing workload types, and efficiency measures. An AI-focused hyperscale facility might consume 10-20 times more power than a general-purpose enterprise data center of similar square footage.

While reliable power keeps your business running, poor energy management creates multiple problems: skyrocketing utility bills, unnecessary carbon emissions, and potential compliance issues as regulations tighten. This makes strategic energy planning a fundamental business priority, not just an IT concern.

The importance of energy management in data centers

Managing power effectively impacts everything from your budget to your brand reputation. As your digital footprint grows, so do the stakes associated with energy decisions.

Cost implications

Energy represents one of your largest ongoing expenses. Rising electricity rates, combined with high-density computing needs and 24/7 uptime requirements, can significantly impact your bottom line. Implementing effective strategies, such as workload optimization, virtualization, and equipment upgrades, leads to major cost savings over time.

Environmental impact

Data centers now account for a growing portion of global electricity use, putting them front and center in corporate sustainability efforts. By reducing your energy consumption, you limit carbon emissions and support broader ESG goals. Many IT teams are adopting cleaner energy sources, improving cooling efficiency, and right-sizing infrastructure to reduce their environmental footprint.

Regulatory compliance

Energy efficiency ties directly to compliance requirements. Governments and industry groups continue introducing stricter regulations and reporting standards aimed at reducing emissions and improving transparency. Staying ahead of these standards isn't just about avoiding penalties; it's about maintaining business continuity and public trust. Learn more about data center compliance and how it affects your energy strategy.

Components contributing to energy consumption

Understanding exactly where your power goes helps identify the most effective efficiency improvements. Four main categories account for nearly all data center energy use:

Servers and IT equipment

The heart of your data center (servers, storage, and networking gear) draws a significant portion of total electricity. These systems must operate continuously to handle everything from basic web hosting to AI workloads, contributing heavily to overall consumption. More powerful hardware also generates greater heat, which increases cooling demands.

Cooling systems

Cooling represents the second-largest source of energy use after computing equipment. Maintaining server temperatures within acceptable limits is essential for performance and uptime. Traditional methods rely on air conditioning and airflow management, but newer technologies offer improved efficiency. For example, data center cooling techniques are evolving to include options like data center liquid cooling, which can significantly lower energy use in high-density environments.

Power supply and distribution

From uninterruptible power supplies (UPS) to power distribution units (PDUs), energy is also consumed in converting and delivering electricity throughout your facility. Losses during transmission, inefficiencies in conversion, and redundancy requirements all add to the total power draw.

Lighting and miscellaneous factors

Although lighting makes up a smaller fraction of energy use, it remains a contributing factor, especially in larger facilities. Motion-sensing LEDs and automated lighting controls help reduce waste. Other contributors include security systems, monitoring equipment, and on-site office functions.

How to measure data center energy consumption

Measuring energy use is essential to improving efficiency and managing operating costs in any data center. The most commonly used metric is Power Usage Effectiveness (PUE), developed by The Green Grid and widely adopted across the industry.

PUE is calculated by dividing the total facility energy by the energy consumed by IT equipment:

PUE = Total Facility Power ÷ IT Equipment Power

A perfect score of 1.0 would mean every watt goes directly to computing, with no energy lost to cooling, lighting, or power delivery.

In reality, most data centers operate above that baseline. According to the U.S. Department of Energy, the average PUE in 2022 was approximately 1.58, though high-efficiency facilities can reach 1.2 or better with optimized infrastructure and operations.

Another useful benchmark is Data Center Infrastructure Efficiency (DCiE), which is the inverse of PUE and expressed as a percentage. DCiE shows how much of a facility’s total power is used for IT equipment. For example, a PUE of 1.25 equals a DCiE of 80%.

Other metrics that support a more complete view of energy performance include:

• Carbon Usage Effectiveness (CUE): Measures greenhouse gas emissions related to data center operations.
• Water Usage Effectiveness (WUE): Tracks water consumption, especially relevant for cooling systems.
• Energy Star and ISO 50001: Provide structured guidelines for continuous improvement in energy management.

Using these standards together enables better benchmarking, smarter decision-making, and more transparent reporting.

Strategies for reducing energy consumption

Implementing effective strategies to reduce energy consumption is crucial for enhancing data center efficiency and sustainability. The Flexential 2024 Momentum Report highlights several key approaches that have been instrumental in achieving these goals.

AI-driven infrastructure optimization

Leveraging artificial intelligence for infrastructure management enables predictive analytics and automation, leading to optimized energy use. Flexential has integrated AI solutions to monitor and manage workloads efficiently, resulting in reduced power consumption and improved operational efficiency.

High-density colocation

Adopting high-density colocation allows for more computing power within a smaller footprint, reducing the energy required for both operation and cooling. Flexential high-density data centers support power densities ranging from 40 kW to 125 kW per cabinet, accommodating modern workloads while maintaining energy efficiency.

Advanced cooling technologies

Implementing innovative cooling solutions is essential to manage the heat generated by high-performance computing environments. Flexential has adopted advanced cooling strategies, such as hybrid air/liquid cooling systems, to enhance energy efficiency and support the demands of AI-driven workloads.

Sustainable energy practices

Integrating renewable energy sources and pursuing energy-efficient initiatives are vital for reducing the environmental impact of your data center. Flexential is committed to sustainability by incorporating renewable energy solutions and implementing energy-efficient practices across its facilities.

Innovations in energy management

The future of data center energy management integrates technologies that provide greater visibility and control:

Artificial intelligence and machine learning

AI tools now predict cooling needs, optimize workload scheduling, and identify efficiency opportunities across your infrastructure. These systems learn from operational patterns to make increasingly accurate adjustments without human intervention. Flexential uses machine learning to optimize environmental controls based on workload patterns, reducing energy waste without compromising reliability.

For more on these approaches, see our guides on AI and data centers and sustainable AI strategies.

Internet of Things (IoT) in energy monitoring

Modern data centers deploy hundreds of sensors measuring temperature, humidity, airflow, and power at extremely granular levels. This visibility helps you identify hot spots, airflow problems, and equipment issues before they affect performance or waste energy. The most advanced systems adjust automatically to changing conditions.

Dynamic load management

Intelligent workload distribution tools balance computing tasks to maximize efficiency. These systems shift resources based on energy costs, computing demands, and thermal conditions. For example, non-urgent tasks can be scheduled during periods of renewable energy abundance or lower utility rates, reducing both costs and emissions.

AI and data center energy consumption

AI represents both a challenge and an opportunity for data center energy management. While AI workloads demand unprecedented power density, they also enable smarter facility operation.

Flexential research shows that AI infrastructure requires purpose-built facilities designed for extreme thermal and electrical demands. In Navigating AI data center trends, we highlight critical upgrades needed for AI readiness, including liquid cooling integration, higher power capacity, and advanced monitoring.

AI also transforms how we manage energy itself. Machine learning systems now:

• Predict cooling needs based on workload forecasts
• Automatically adjust environmental controls in microsecond increments
• Identify efficiency opportunities human operators might miss

For organizations expanding their AI capabilities, Scaling AI Infrastructure provides practical guidance on aligning power, cooling, and workload placement with computing demands. This resource explains how hybrid models and specialized colocation can support growth while controlling energy use.

The relationship between AI and sustainability is explored further in How data centers can enable AI growth and ESG progress, showing how thoughtful design choices make AI growth compatible with environmental goals.

Sustainability in data centers

Energy efficiency forms the foundation of data center sustainability. At Flexential, environmental responsibility guides every aspect of facility design and operation.

Our approach focuses on measurable impact, transparent reporting, and continuous improvement. We've implemented:

• High-efficiency infrastructure across all 19 U.S. markets
• Advanced environmental monitoring systems that optimize resource use
• Density-optimized designs that reduce physical and energy footprints
• Cooling technologies that minimize both electricity and water consumption

As detailed on our Sustainability at Flexential page, these initiatives support both our environmental goals and our customers' sustainability requirements. Many organizations now factor a provider’s environmental practices into their IT sourcing decisions.

Our comprehensive Environmental Social Governance report further details key milestones and targets, including emissions tracking, energy intensity improvements, and sustainability performance indicators. Additional information about governance, workforce diversity, and ethical operations is also available on the ESG page.

Sustainability isn't a separate initiative at Flexential; it's built into our core operations and future planning.

Ready to make your data center more efficient and sustainable?

Discover how Flexential energy-efficient data center solutions and sustainability programs can help you meet both performance and environmental goals. Questions or ready to discuss your specific needs? Contact our team today.

FAQs

What factors contribute to the energy consumption of data centers?

The energy consumption of data centers is influenced by a variety of factors, with the most significant being servers and IT equipment, which handle the bulk of data processing. Cooling systems, essential for maintaining optimal operating temperatures and preventing overheating, are another major energy draw. Power supply and distribution infrastructure efficiency is also critical; losses in this area translate to wasted energy. Beyond these, factors like lighting, network infrastructure, and storage systems also contribute, albeit to a lesser extent.

How can data centers improve their energy efficiency?
Common strategies include using virtualization, deploying energy-efficient hardware, improving airflow and cooling systems, and adopting metrics like PUE to track performance. Learn more about data center best practices.

How much energy will data centers consume in 2030?
Forecasts from the International Energy Agency suggest total data center electricity demand could double by 2030, driven largely by AI and digital infrastructure expansion. This makes efficiency and sustainability more important than ever.

Why is monitoring energy consumption in data centers important?

Monitoring energy consumption in data centers is important for several reasons. First, it provides valuable insights into where energy is being used, allowing operators to identify inefficiencies and areas for improvement. Second, it enables data-driven decision-making regarding upgrades, optimizations, and resource allocation. Third, continuous monitoring allows for tracking progress toward energy efficiency goals and demonstrating compliance with sustainability regulations. Finally, monitoring energy consumption helps reduce costs, as reducing energy waste directly lowers operational expenses. Understanding what PUE is and tracking that metric consistently is a key part of the monitoring process.

How do data centers impact the environment?

Data centers have a significant impact on the environment due to their high energy consumption. The electricity used to power and cool data centers often come from fossil fuels, contributing to greenhouse gas emissions and climate change. In addition, the manufacturing and disposal of electronic equipment associated with data centers can generate waste and pollution. However, data centers are increasingly adopting sustainable practices, such as using renewable energy, implementing energy-efficient cooling technologies, and participating in e-waste recycling programs, to mitigate their environmental impact. At Flexential, we are committed to minimizing our environmental footprint and promoting a more sustainable future for data centers.