By Matthew Margetts, Director of Sales and Marketing, Smarter Technologies
The total installed base of Internet of Things (IoT) connected devices worldwide is projected to amount to 30.9 billion units by 2025. Data centres already use massive amounts of energy, and with more and more devices coming online, they’ll need to find ways to scale capacity and consumption. Data centres are estimated to be responsible for as much as 3% of global electricity consumption today, projected to increase to 4% by 2030. The average hyperscale facility consumes 20-50MW annually, which is theoretically enough electricity to power up to 37,000 homes.
Why do data centres consume so much energy?
Increased regulation is inevitable
Data centres will almost certainly experience increased regulations in 2023 as the world continues to grapple with mounting pressures to meet consumer demand for energy and water against the backdrop of ongoing climate change. Data centres are outsized consumers of these resources, forcing governments at all levels to take a harder look at data centre regulation. In response, the industry understands that pursuing energy and water efficiency and focusing on overall environmental and community impact are crucial to its future success and survival.
For example, as part of its goal to become carbon negative by 2030, Microsoft is building three of the world’s most energy-efficient data centres in Denmark. Microsoft aims to complete the data centres by 2024. Innovations in these data centres include:
The impact of energy price hikes
Another challenge which has hit the data centre industry hard is the increase in energy prices around the world—an increase of 600% since January 2021 in the UK market. And prices could still get higher. The UK government’s Energy Bill Relief Scheme for businesses will help, but it won’t solve the problem altogether.
A renewed focus on sustainability and leaving a greener footprint
Data centres are looking at ways of becoming more sustainable in terms of energy efficiency and carbon emissions. The good news is that new technology is well-placed to make a difference. While there is a lot of talk about carbon neutrality and getting to net zero in the data centre sector, the first step is looking at energy efficiency – from procuring energy-efficient equipment, sourcing renewable energy, having the most energy-efficient data centre design and implementing a smart building energy monitoring system. Reducing demand is also possible through server consolidation, storage and network consolidation, hybrid cloud, telecommunications, and RAN optimisation. Every year technology developments drive further efficiency in the data centre space to drive efficiency. It’s crazy to think that many data centres didn’t even contain containment just a few years ago.
The (somewhat ironic) role of IoT technology
While the energy impact of data centres is undeniable, what can’t be ignored is the energy efficiency trends that have developed in parallel. So, although the rise in IoT technology is increasing data centre demand, it’s also providing better energy management.
Here’s how:
Data centre operations require a safe, efficient, dependable and sustainable power supply. Fortunately, the same smart technology that is necessitating the growth of data centres is also helping to make them more energy efficient and future-fit.
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© 2025 All Things Media Ltd.
© 2025 All Things Media Ltd.