Cash for Clunkers in the Data Center

Analysis
Jul 14, 20092 mins

Get paid to consolidate old servers, upgrade your Data Center HVAC system

I have been seeing a fair amount of news coverage about the U.S. government’s “Cash for Clunkers” program. Turn over a functioning automobile that averages less than 19 miles per gallon in gas and is less than 25 years old and you can earn a $3,500 or $4,500 voucher toward the purchase of a new vehicle. Wouldn’t it be great if there was similar program for Data Centers? Turn in an old piece of energy guzzling hardware and get money to buy something new? There is actually, at least in some regions. Several utility companies now offer financial incentives for companies to get rid of older, less efficient hardware, typically replacing them with virtualized servers that have much higher utilization rates. California-based Pacific Gas and Electric Co., for instance, pays 9 cents per kWh plus $100 per kW of demand reduction for consolidating old servers. (PG&E offers other incentives for cooling and lighting upgrades, too.) Many government agencies also have tax breaks for projects that reduce energy consumption. In the United States, you can get a $1.80 per square foot tax deduction for cutting a commercial building’s HVAC, water heating and interior lighting energy costs by 50 percent. So, talk with your local utility company and local government. There might be some rewards available for getting clunkers out of your Data Center as well as your driveway. … I ended my last post with a minor trivia question… how many Data Centers have been formally LEED-certified? The answer: five, according to the U.S. Green Building Council.