Visibility and Maximizing the Efficiency of Data Center Power Consumption
- By Arunangshu Chattopadhyay, Vertiv Asia
- January 14, 2025

Think of any process or service today, and chances are that it relies on electricity. More critically, electricity powers the data centers 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 centers consume vast amounts of electricity to power servers, networking equipment, and cooling systems. For example, the International Energy Agency (IEA) estimates that data center power usage could soar from 460 terawatt-hours (TWh) in 2022 to over 1,000 TWh by 2026.
This is particularly urgent for regions with limited renewable energy generation. 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, ranking the country as the most expensive for land. Taken together with the rapid increase in power consumption from data centers, 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, organizations are tapping into cloud services from multiple vendors. 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
According to data from think tank Ember, fossil fuels account for 60% of electricity generation globally. The sustainability factor is driving infrastructure and data center operators to seek ways to improve power consumption. The motivations for this are also broader than the impact on the climate, as insights into power consumption can guide future construction and equipment purchases, optimize operations, and implement appropriate billing strategies.
These newfound benefits would allow cloud service providers to offer a broader range of services and pricing options. That enhances market competitiveness. On the other hand, customers can opt for low- or zero-emission cloud services that support sustainable business growth.
Enhancing efficiency
In 2025, it is predicted that data centers will prioritize energy availability challenges as overextended grids and skyrocketing power demands are changing how data centers consume power. Globally, data centers 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 organization’s power consumption is essential as data centers look to prioritize energy efficiency and sustainability even more than they have in the past. However, that rests on comprehensive energy management, where the necessary data is available, and leaders can develop strategies for decarbonization, 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 customizable solutions
Data center operators need a flexible energy management system that delivers the infrastructure required for software and digital services. This encompasses operational controls, asset management software, and monitoring tools designed to facilitate digital services. Additionally, their teams need access to a range of services, from anomaly detection to remote monitoring and troubleshooting.
Likewise, clients of these data center operators will want to have the opportunity to customize their power management solutions to meet specific needs. With many organizations 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 center 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 optimize power usage, minimize emissions, and ensure operational resilience in 2025 and beyond.
The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CDOTrends. Image credit: iStockphoto/standret
Arunangshu Chattopadhyay, Vertiv Asia
Arunangshu Chattopadhyay is the director of AC power and power distribution at Vertiv Asia.