Data center modernization is a coordinated update to the IT equipment and the facility systems that power, cool, and support it. It can involve compute, storage, and networking alongside airflow, cooling, electrical capacity, measurement, and operations. The right plan depends on the workloads, site, climate, water conditions, resilience needs, and existing infrastructure—not on a single universally best design.
What data center modernization includes
Modernization is a whole-system effort. New or reconfigured IT equipment changes electrical demand and heat output; those changes can affect power distribution, cooling capacity, airflow, and operating procedures. In turn, facility constraints may limit which IT changes are practical.
The U.S. Department of Energy’s Federal Energy Management Program (DOE/FEMP) says its 2024 Best Practices Guide for Energy-Efficient Data Center Design cannot prescribe one most-efficient design for every facility. Its guidance is intended to help across different scenarios. A modernization plan therefore needs to start with the facility’s workload and constraints rather than a generic equipment checklist.
What each part of the data center needs to address
| Area | Modernization question | Facility connection |
|---|---|---|
| Compute | Does the equipment fit the workload and deliver the needed capacity and utilization? | IT efficiency and environmental conditions can affect mechanical and electrical systems, not just server performance. |
| Storage | What capacity, access performance, and data-management methods does the application require? | Storage uses power and produces heat; reducing unnecessary storage demand can also reduce power-infrastructure losses and cooling load. |
| Networking | Can the network support the facility’s workload and operational requirements? | Network equipment is part of the IT electrical load and heat picture, so its needs must fit power and cooling capacity. |
| Power and cooling | Can the site reliably deliver power and remove heat under the intended operating conditions? | Capacity, airflow, climate, water conditions, and resilience requirements shape the available choices. |
| Operations | Can staff commission, monitor, maintain, and safely operate the changed systems? | Commissioning, procedures, maintenance, and workforce readiness are part of the modernization work. |
How to modernize compute, storage, and networking
Compute: begin with workload fit
Assess the work the servers must perform, their utilization, required capacity, and IT efficiency before selecting replacements or changing configurations. DOE/FEMP notes that IT-system efficiency and environmental conditions matter early because they can have cascading effects on electrical and mechanical systems. A server refresh may improve IT efficiency, but it does not automatically guarantee lower total facility energy use: the outcome depends on the equipment, workload, utilization, and facility response.
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Storage: match the application and manage capacity
DOE/FEMP’s storage acquisition guidance, updated in December 2024, recommends considering ENERGY STAR-certified data-center storage and selecting systems to fit the application. It identifies thin provisioning, data deduplication, compression, and delta snapshots as ways to optimize capacity. Less storage demand can mean less storage energy, power-infrastructure loss, and heat to remove.
Storage media involve tradeoffs rather than a universal winner. The guidance notes that solid-state drives (SSDs) offer faster read and access speeds than conventional hard disk drives (HDDs), but cost more. Choose against the application’s performance and capacity requirements, rather than treating either medium as the right choice for every use.
One DOE/FEMP calculation illustrates why assumptions matter: its 2024 guidance estimates that a specific 1,500 TB ENERGY STAR-certified data-center storage system could justify a premium of up to $525 in 2023 dollars over a less-efficient model and still save money. The calculation uses U.S. federal electricity prices as of July 2024, a five-year product life, and December 2024 efficiency data. It is an illustrative purchase-cost threshold for that scenario—not a current market price or a general estimate of storage-project savings.
Networking: include it in the facility load plan
Account for network equipment when estimating IT load, heat, electrical headroom, and cooling requirements. The DOE/FEMP material cited here does not establish a preferred network topology, switch, or model-level upgrade; those choices need to be evaluated against the facility’s network requirements and design.
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- PCI & HIPPA and EIA/ECA-310-E compliant
How cooling and heat management affect the plan
Start with airflow
Before adding cooling equipment, check whether air is reaching the IT equipment as intended. DOE/FEMP recommends arranging racks to create distinct hot and cool zones and preventing warm exhaust from mixing with cool supply air. Rack layout and containment should support that separation; a rack cabinet is only an example of how equipment may be arranged, not a prescribed solution.
Use economizing only when site conditions support it
Air-side economizing uses suitable outdoor air to reduce reliance on mechanical cooling. Whether it works depends on local climate, outdoor-air quality, humidity tolerance, and controls. Water-side economizing can bypass or reduce chiller load when the system is appropriately configured. Both approaches are conditional: their suitability depends on the site and system, not simply on a desire to reduce cooling energy.
Consider liquid cooling for high-density retrofits on their own merits
ASHRAE’s Retrofit & Modernization Strategies | AI Data Center Energy Performance Framework describes hybrid arrangements that use direct-to-chip liquid cooling for processors while existing computer room air conditioning (CRAC) or computer room air handler (CRAH) systems remove residual heat. A retrofit may also need review of power transients, structural capacity, commissioning, and workforce readiness.
ASHRAE’s rack-density, power-spike, and equipment-weight figures describe scenarios in that framework; they are not universal thresholds or specifications. Whether liquid cooling is needed depends on the equipment, density, cooling design, and site constraints.
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How to compare modernization options
Compare complete configurations against the facility’s objectives, rather than judging one component in isolation. Useful criteria include:
- Workload, utilization, and required compute, storage, and network capacity.
- IT efficiency and the expected electrical and heat loads.
- Resilience requirements and available electrical headroom.
- Rack density, airflow, and the cooling approach.
- Local climate, air quality, and water availability.
- Lifecycle cost and the ability to commission, maintain, and operate the proposed systems.
DOE/FEMP’s design guidance emphasizes that efficiency measures need to suit the data center’s scenario. Local codes, utility conditions, and facility requirements also govern design; the U.S. federal guidance is not a substitute for project-specific engineering.
How to measure energy and water performance
Power usage effectiveness (PUE) is total facility energy divided by IT equipment energy. Water usage effectiveness (WUE), as defined in DOE/FEMP guidance, is site water use divided by IT equipment energy and is expressed in liters per kilowatt-hour. These metrics can help track facility energy and water performance, but neither alone describes the value delivered by the workload, resilience, or every environmental impact. Interpret them alongside workload, climate, water availability, and operating requirements.
Why commissioning and operations belong in the project
New power and cooling arrangements need commissioning to confirm that systems operate as designed and interact correctly with the IT load. The project also needs suitable monitoring and maintenance procedures, plus operator readiness for the changed equipment and operating conditions. ASHRAE’s AI retrofit framework explicitly includes commissioning and workforce readiness among modernization considerations; they are not merely post-installation details.
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