Monday, 12 April 2010

Hot as Hell Data-Centers Impact Business Values

With energy consumption from ICT systems now accounting for over 40% of average office energy bills it is essential for business to consolidate their computing requirements through virtualisation of resources onto fewer more powerful systems.

The UK’s new Carbon Reduction Commitment (CRC) Energy Efficiency Scheme came on line on the 1st of April - but according to consultancy Pricewaterhouse Coopers (PwC) this is no joke.

As energy costs for business already set to soar over the next 5 years PwC suggest that the CRC could act as a costs multiplier - with poorly managed energy systems adding up to 20% to those increased energy costs.

As part of the governments scheme, participants will have to purchase allowances to emit CO2 and report their emissions. On the back of this reporting scheme, results will be published in a league table with bonuses paid to the best performing companies, and fines for the profligate.

PwC estimates that 5,000 businesses with energy bills in excess of £500,000 p.a will be affected with a typical company with a £1m p.a. energy bill seeing an additional £500,000 added to the already increasing energy bills over the next 5 years.

Bottom line for investors is that with CRC adding 2-6% to the annual operating costs, a large power hungry data-centers directly impact the companies value.