Increasing IT Energy Efficiency

As technology evolves, so does the energy required to support it. From AI workloads to cloud services, business operations are more compute-intensive than ever. Global data centres consume around 415 TWh of electricity each year, equating to 1.5% of global consumption. The demand for energy could more than double by 2030 without major efficiency improvements.

Energy use within a data centre is typically split between computing and support systems:

• IT Equipment (Servers/Storage): Accounts for roughly 45-60% of total electricity demand.
• Cooling Systems: Consumes approximately 30-40% to prevent hardware from overheating.
• Infrastructure & Losses: The remaining 10-20% goes toward power conditioning, lighting, and networking equipment.
  (Source: International Energy Agency, 2025)

Organisations face an interesting challenge: reduce operational costs while lowering carbon impact.

IT is energy-hungry on a global scale; however, there are steps you can take to minimise the impact of your business IT. Practical technology decisions across hardware, software and operations can significantly reduce energy demand.

How Businesses Can Impact IT Energy Efficiency

1. Review IT Energy Use

Energy dashboards and sustainability reporting tools now allow IT managers to link digital operations directly to carbon emissions, making it easier to identify inefficiencies.

2. Modernise Hardware and Extend Device Efficiency

Older equipment often consumes far more energy than modern alternatives. Upgrading to energy-efficient servers, laptops, and networking devices can dramatically reduce electricity use.

Businesses can also implement policies such as:

• Automatic device sleep modes
• Power-managed desktops and monitors
• Responsible recycling

Even small device-level improvements can deliver significant savings when multiplied across hundreds of employees.

3. Optimise Software and Workloads

Efficient software design plays a major role in reducing energy demand. Energy-aware data centre management research shows that intelligent workload scheduling and automation can reduce infrastructure power consumption while maintaining performance. (Source: Cornell University, 2025). This can involve:

• Consolidating servers
• Reducing unnecessary data storage and duplicate systems
• Optimising applications to run more efficiently

4. Choose Sustainable Cloud Providers

Cloud migration can lower IT energy demand when providers use renewable power and operate at hyperscale efficiency. (Hyperscale efficiency involves exceptionally high performance, rapid scalability and cost-effective data centre operations when handling enormous workloads).

When selecting a cloud platform, businesses should evaluate:

• Renewable energy commitments
• Data centre efficiency metrics
• Carbon reporting tools

Major providers increasingly publish sustainability dashboards so organisations can track the carbon impact of their workloads (see point one above).

5. Reduce Data and Network Overhead

Data storage and transfer also consume energy. Companies can lower demand by:

• Archiving or deleting unused data
• Compressing large datasets
• Using edge computing for local processing where appropriate

In addition, processing data closer to where it is generated can reduce transmission energy and improve performance.

A Business Opportunity

‘Energy-efficient computing is more than an environmental initiative,’ says Eric Hughes, founder of EMH Technology in Hitchin. ‘Using less energy also offers operational advantages via lower energy costs and ESG goal support. It also prepares organisations for stricter sustainability reporting in the future.’

Every technology decision, from hardware purchases to cloud storage, impacts energy consumption. With thoughtful planning, you can run powerful digital systems while significantly reducing your carbon footprint.

How will you address your organisation’s IT energy consumption?