A green data center means green savings
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1 A green data center means green savings
2 Greening your data center Most people feel that sustainability is the right thing to do for our environment, but is it the smart thing for designing and operating a productive data center? In a word, yes. Contrary to the belief of some, reduced energy consumption does not equate to reliability. Greening a data center boosts, not sacrifices, mission-critical operational efficiency and stability. At a time when organizations are pressured across the board to lower costs, greening data centers drives huge savings as well. Data centers are energy hogs that typically represent about 25 percent of total fixed corporate assets, and 50 percent of overall IT budgets. 1 The environmental benefits of reducing consumption translate directly to bottom line savings in data center energy costs. Increasingly, C-suites have mandated sustainability as a corporate goal, to the extent of making public commitments for carbon reduction. In this paper, Jones Lang LaSalle makes the case for greening your data center to reduce costs, increase operational security and uptime, and optimally position your company for the implications of government plans for energy and the environment. We also address the challenges to developing an implementation strategy that best suits your IT needs and operating scenario, and describe some proven ways to implement improvements that are green in both sustainability and cost savings. 2 1 Unless otherwise noted, facts in this article are from studies conducted by Jones Lang LaSalle, McKinsey & Company, and Campos Research and Analysis.
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4 Why go green? More sizzle, less spend To many CRE and IT executives, the most compelling reason for sustainability is to save money lots of it. IT represents percent of the average company s energy consumption, and the Environmental Protection Agency projects data center energy consumption, under present practices, to double by Facility costs are growing at 20 percent annually, compared to 6 percent growth in annual IT spend. Concurrently, most experts feel that utility costs will rise over the long term. In many companies, this combination of factors will move the operational needle to critical. Through a combination of sound hardware choices, operational best practices and power and cooling product efficiencies, data-centric companies such as Microsoft, Sun Microsystems, IBM, Hewlett-Packard and Yahoo! have reduced IT energy costs by 50 percent or more. Many of the same sustainable initiatives that reduce costs directly boost data center reliability. Over the years, many systems were developed and expanded with an anything goes attitude toward assuring adequate business support. Obsolete technology was frequently not removed, leading to a present scenario in which server utilization rarely exceeds 6 percent and facility utilization can be as low as 50 percent. The result: a severe drag on both the system and the budget. Consolidating multiple platforms and virtualizing applications on one or two servers reduces data center crowding and amount of energy needed to power and cool the system while increasing availability and user security by off-site data storage, and improving disaster recovery. While virtualization upfront costs can be relatively high, an average three-year ROI makes it a sound long-term investment. Some firms are considering outsourcing many traditional data center functions through a cloud computing model that delivers hosted services as needed over the Internet thus eliminating the need of a hosting server. Cloud computing has been around for a few years, but it is still being tested in the data center realm. Using this model for at least some IT functions can slash costs and maximize flexibility, eliminating the demand peaks and valleys inherent with in-house operations. With capabilities of tens of trillions of computations per second, cloud computing can heighten the effectiveness of IT delivery and reduce costs all the while contributing to corporate sustainability. Many of the same sustainable initiatives that reduce costs directly boost data center reliability Helpful organizations An ever-growing array of expert organizations and evaluations can help data centers through the greening process. They include: The U.S. Green Building Council s Leadership in Energy and Design (LEED), a globally-recognized third-party measurement and certification program for sustainable design and construction Green Globes, an easy-to-use self-administered environmental assessment, education and rating system widely used in Canada and gaining popularity in the U.S. The Green Grid, a nonprofit professional consortium dedicated to improving data center efficiency Energy Star, an energy standard established by the EPA to measure energy efficiency of hundreds of products including lighting, heating and cooling systems These and other energy-conscious support groups use verified standards and procedures to help data centers determine where they stand and opportunities for improvement. 4
5 Abundance of incentives and options President Obama s aggressive goals for reducing global warming and dependence on imported oil suggest that future trends will include increased legislation to reduce energy consumption now is the time to be thinking about your data center. While it is premature to forecast exactly how anticipated legislation will affect corporate data centers, CRE and IT decision makers should proactively address their energy and sustainability performance now, instead of trying to catch up to new regulations later. There is a silver lining to government-enforced sustainability: through clean energy legislation and the federal stimulus package in general, tax breaks, grants, low-cost loans and other incentives already offered for sustainable corporate initiatives should multiply in coming years. For example, the Federal Energy Policy Act provides a tax deduction of up to $1.80 per square foot for commercial buildings that reduce energy consumption in heating and cooling by at least 50 percent. In addition, 32 states already offer some type of statewide, local or utility sponsored rebate program for renewable energy use. For data centers, this means that green capital improvements once considered too large an investment or too slow in ROI may well be more attractive in regulatory and incentive scenarios of the future. Energy sources themselves offer increasing green opportunities as non-traditional renewable sources of power nuclear, wind, hydro, solar, geothermal provide attractive alternatives to coal- or oil-based energy. For example: Microsoft s Quincy, Washington data center uses 100 percent renewable hydropower from the Columbia Basin River; and a sister facility in San Antonio, Texas uses about eight million gallons of recycled water a month from the city s waste water system during peak cooling months. Yahoo! is about to build a data center in Lockport, New York that will use 100 percent hydropower from Niagara Falls, and server cooling completely from outside air. An American College Testing (ACT) data center in Iowa City, Iowa, which features an entirely geothermal cooling system, recently became the first data center in the U.S. to receive LEED Platinum certification. Such energy options may be even more attractive over time. The American Clean Energy and Security Act of 2009 (ACES) currently in Congress will likely result in higher prices for energy from non-renewable sources such as coal and natural gas. The final legislation could create a carbon tax on non-renewables that, passed on through rate increases, could mean that today s lowest cost utilities might not be tomorrow s, depending on their source mix. Building a new data center as a greenfield facility on an acreage is another option gaining traction. By selfgenerating power from a green source such as windmills, the facility can not only meet most or all of its energy needs. Google s Mountain View, California campus is topped by the largest U.S. corporate office installation of solar panels, which satisfy about one-third of the complex s energy requirements. It also generates part of its power for a Netherlands data center from an onsite windmill farm, and filed a patent application for a water-based floating data center including an energy supply fed by a wave-powered generator system, and a wind-powered cooling system using sea water. 5
6 Where to begin? Establish a collaborative process Chances are you ve already considered energy efficiency measures without labeling them as sustainable; many companies have done this for years. However, rolling out an comprehensive strategy focused on green data center performance may present challenges if some key stakeholders don t understand its benefits, or hold different views. Establish a collaborative, clear process for all parties to work together on new green initiatives from the start. Include representatives from CRE, IT, finance (if large capital expenditures are involved), and corporate leadership. C-suite support is critical, but usually available if you can present a compelling case for up to 50 percent in data center and IT cost savings. Remember, most large corporations have made at least a broad commitment to carbon reduction and other sustainable practices. Establish a collaborative, clear process for all parties to work together on new green initiatives from the start. Create a sustainable data center steering committee from representatives of these groups, and make sure they are given the work time and educational resources necessary for the task. The core decision-making group should develop an all-encompassing plan that addresses all aspects of data center physical design, systems configuration and operation. It should address not just environmental friendliness but IT and overall corporate business goals. Make sure everyone is on the same page by defining levels of data center capability and other important considerations in precise measurements, not vague terms like seamless operation. What s the best bang for the buck? Small steps: maximize your current setup If a virtual platform or other large capital investment isn t an option at this time, there are still several low- or no-cost steps that can make a major difference. Start by making any minor repairs necessary to return power-hungry infrastructure components such as cooling, heating and lighting equipment to maximum efficiency. Then, establish a rigorous preventive maintenance program to assure continuous top performance. Replace a piece of equipment if necessary, using guidelines such as Energy Star ratings to select the greenest products. Analyze your current data center footprint for opportunities for more cost-saving, sustainable operation. Uptime found that poorly designed layout and airflow wasted more than 60 percent of energy from cooling. Making small adjustments to existing layout and rack and server arrangements can yield major savings. Effective strategies include: Raised floors to concentrate cold air Alternating hot and cool server aisles to improve air flow Water-based air conditioning systems Such improvements often enable reduction of the data center s physical size, enabling not just energy, but real estate savings. From super-efficient bulbs to advanced HVAC systems, every day there are new low-cost hardware choices to improve the performance of data centers. Some of the greatest ROI can be found in automated cooling controls that can minimize inside humidity, use outside air for cooling when practicable, and assure that computers aren t being overcooled with an accompanying energy cost. Another quick fix can be lighting controls that can illuminate different areas of the building only when occupied. When employees go home, your data center isn t afraid of the dark. In combination, an upgrade to sustainable, relatively low-cost operational controls 6
7 can pay for themselves in a few years or less, then generate hundreds of thousands of dollars in energy savings each year. Big steps: virtualization, relocation Pare your system down to servers and other technology that is making an active contribution to business needs, not just draining energy. Investigate virtualization, even cloud computing options that might work for your information needs. Depending on where your data center is located, one of the best strategies might be to move it completely. Among important considerations: If your facility is in a hot area of the country, consider a region with a cooler climate. Beware, though, coldest does not always mean best. The optimum weather for data centers is an even climate with the least amount of temperature variation throughout the year. and seek a lower-cost location. Again, a caution: When investigating prospects determine the percentage of electricity of local power generated by renewable energy sources now and in the future. This is not only the most sustainable energy route, but increasing governmental mandates on energy sources will ramp up the cost of non-renewables in the years ahead. Not all local welcome mats are equally inviting. Local incentives loom large in any relocation decision, and some states and communities pursue sustainable operations much more aggressively than others. At present, 32 states offer rebates at the state, local or utility level for implementing renewable technologies. This and other varying incentives are good reason to seek the best green data center relocation package each prospect will offer. Compare your utility rates to those elsewhere in the U.S., Rationalize and benchmark To determine the best particular green course for your data center portfolio, first rationalize what is now in place. Among the important questions to address: Does the current systems architecture contain comatose servers or other dead weight that sucks energy needlessly? What is the age and operating efficiency of your cooling system? Is the data center located in a region with temperature extremes? What is the rate structure of the local utility, and how is their power generated? How might your company s information needs change in the foreseeable future? Next create a measureable baseline of current data center performance to use as a benchmark for improvement. One of the most widely accepted measuring metrics is Power Usage Effectiveness (PUE) created by the Green Grid. PUE is determined by dividing the amount of power entering a data center by the power used to run the computer infrastructure within it, with a perfect score expressed as 1. According to the Uptime Institute the average data center has a PUE of 2.5, meaning that for every 2.5 watts of energy entering the meter, only 1 watt is actually being used to meet real corporate computing needs. Uptime estimates that most facilities could achieve 1.6 PUE or lower, which makes this metric a worthy target. If you re not experienced in such technical processes, engaging sustainability real estate expert advisors that understand the challenges working with data centers will look out for your best interest and help you determine your data center portfolio benchmarks. 7
8 Whatever you do, do it now Time to act is now The timing for greening your data center has never been better. The price of sustainable technology has dropped and the cost of energy from non-renewable sources will continue to rise. System improvements range from simply eliminating non-productive platforms to outsourcing a large part of the traditional IT function. Governmental friendliness toward sustainable retrofits and new development is at an all time high. Compelling as the benefits are for greening your data center, there are complex decisions to be made. Jones Lang LaSalle, the international leader in helping commercial real estate owners and occupiers of all types create successful long-term environmental solutions, has experts on every aspect of data center sustainability discussed in this paper. Our team stands ready to help you determine the best ways to help your IT function become more green and productive while generating bottom-line savings. Efficient Sustainability: One Company s LEED-ing Efforts In pursuit of LEED Gold certification, energy-saving and other green initiatives recently taken by one large corporate data center include: System enhancements such as a heat exchanger for free-cooling water, side economizer, variable speed drives on pumps and fans, elevated operating temperatures and enclosed hot aisles to increase free-cooling hours, upgraded building insulation and minimal windows. The result: 17% energy savings over new building standards required by the U.S. Department of Energy. Lighting and temperature that improve individual control and comfort, and adjust when a specifi c space is not in use An energy measurement and verifi cation plan including sensors and programming to monitor and document actual building energy use Purchasing contracts for green power Low fl ow fi xtures and motion detection sensors to reduce potable water use by more than 30% A refrigerant management plan to reduce and eliminate greenhouse gas emissions and ozone depletion Ventilation system that supply up to 30% more outside air, and reduce pollutants to indoor spaces 8 Outdoor lighting to reduce light pollutionminimal fi xtures, cut off heads to reduce night sky illumination
9 Jones Lang LaSalle s Mission Critical Solutions Practice Jones Lang LaSalle s Mission Critical Solutions team has the expertise to merge commercial real estate needs and information technology requirements for a successful data center strategy that efficiently delivers maximum value to your organization. We understand the technical elements that go into decisions regarding data center power, cooling, fiber, latency, utilities, redundancy, taxes, construction, public incentives and security. We maintain global data center inventories and have developed some of the industry s best data center analytics. Having served many of the world s largest data center users, we collaborate closely with our clients to develop and implement a successful data center strategy which aligns with their overall business objectives. Jones Lang LaSalle s Energy and Sustainability Services Jones Lang LaSalle offers a range of services to help you maximize your return for implementing green initiatives. Our services include: Consulting services Energy services: - Energy audits - Energy baselining - Portfolio energy management services Retrocomissioning Strategic program development and management LEED services: - LEED gap assessments - LEED design charrette - LEED certification management Sustainability training Sustainability property and portfolio baselining.
10 For more information about greening your data center and how Jones Lang LaSalle can help you, please contact: Peter T. Belisle II Spencer Jurman Dana Schneider President Mission Critical Managing Director Senior Project Manager Project and Development Services Project and Development Services Project and Development Services Los Angeles Office New York Office New Jersey Office peter.belisle@am.jll.com spencer.jurman@am.jll.com dana.schneider@am.jll.com Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
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