IT environments are the backbone of business operations, but as demand for computing power accelerates, driven by cloud adoption, AI workloads, and edge computing, the energy footprint of digital infrastructure has become a critical concern. Energy efficiency is no longer a “nice to have”; it’s a strategic imperative.
The Rising Energy Challenge
Data Centres consume vast amounts of electricity, and global energy costs continue to rise. According to the International Energy Agency (iea.org), Data Centres on their own, account for nearly 1.5% of global electricity use, burning 415TWh, and this figure is climbing. We expect this to climb to 3% of global electricity use by 2030.
For businesses, this translates into higher operational expenses and increased exposure to energy market volatility. Beyond cost, there’s mounting pressure from regulators and stakeholders to reduce carbon emissions and meet sustainability targets.
Why Does Efficiency Matter Now?
Energy efficiency delivers a dual benefit, it reduces operating costs and supports environmental responsibility. Enterprises that optimise their infrastructure can achieve significant savings while aligning with their ESG commitments. This is especially relevant in Australia, where energy prices are among the highest in the OECD and sustainability regulations are tightening.
What are the Drivers of Change
- Regulatory Compliance – Governments are introducing stricter energy and emissions standards for Data Centres. With the European Union revising its Energy Efficiency Directive (EED) for all DCs with a power demand >500kW to report on its energy consumption, PUE, water usage, renewable energy and heat reuse. In Australia, Federal policy mandates that all Data Centres hosting government workloads, public or private, achieve a minimum 5-star NABERS Energy rating. When will this be mandated for all Data Centres?
- Corporate Sustainability Goals – Many global businesses are setting ambitious net-zero targets, making energy efficiency a board-level priority. Many align their Sustainability Plans based on Carbon Credits. Major Banks in Australia, such as Commonwealth Bank, NAB, ANZ, and Westpac, have climate commitments, typically aligned to the Paris Agreement.
- Technology Evolution – Modern hardware and cooling solutions offer unprecedented efficiency gains but require strategic planning and investment. We have all seen the evolution of traditional Servers being transformed into Servers that can now be cooled by fluids rather than air, increasing the cooling temperatures used.
How to Respond
Energy efficiency starts with an holistic approach –
- Audit and Benchmark your current infrastructure. At BARMDC we provide a Due Diligence Service that is tailored to your needs https://barmdc.com/services/due-diligence/
- Leverage Modern Cooling technologies like liquid cooling and AI-driven airflow management. Selecting the right Data Centre that provide access to modern cooling technologies will be important as clients switch to more efficient platforms.
- Adopt Virtualization and Cloud to reduce physical hardware footprint. Moving to Cloud Services would always appear the best way forward, but as many client have found costs are not always lower and in many cases we have seen clients back track and re-install their own platforms in Data Centres to exit their Cloud Agreements. Moving to Cloud Services should not be taken lightly, undertaking an analysis of the Pros and Cons, alignment to your IT Strategies and a detailed costs analysis should be undertaken.
- Monitor and Optimise continuously using intelligent energy management tools. There is a plethora of tools out there from open source to complex AI driven Data Centre Infrastructure Management Tools. At BARMDC we have helped organisations identify, select and implement tooling including DCIM for their environments.
Optimising the configuration and operation of your Data Centre infrastructure is one of the most effective ways to reduce your costs and improve the performance of your platforms. Poorly tuned systems often lead to unnecessary energy consumption, excessive cooling requirements, and underutilised hardware, all of which inflate operational expenses.
By fine-tuning elements such as server workloads, cooling strategies, and power distribution, enterprises can achieve significant efficiency gains. Techniques like dynamic load balancing, airflow optimisation, and intelligent monitoring ensure that resources are used only when needed, reducing waste and extending equipment lifespan. This proactive approach not only lowers energy bills but also supports sustainability goals, making infrastructure tuning a critical component of modern data centre management.
This BARMDC thought leadership piece explores how energy efficiency has become a strategic priority for digital infrastructure because optimising Data Centres reduces operational costs, meets sustainability goals, and ensures compliance with tightening global regulations whilst supporting the growing demand for high-performance computing. It’s designed to guide decision-makers navigating today’s challenges of reducing current Data Centre costs. (www.barmdc.com)
At BARM DC, we specialise in designing, optimising, and migrating Data Centre environments that deliver maximum efficiency and resilience. From energy-conscious fit-outs to advanced cooling strategies and performance tuning, our team ensures your infrastructure is ready for the future, reducing costs, improving sustainability, and supporting business growth. Whether you’re planning a new build, upgrading existing systems, or you need to review your current environment, we provide end-to-end expertise to help you achieve your goals with confidence.