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World desk5 min

Why Data Centers Use So Much Energy—and How Operators Can Reduce It

Servers, cooling and reliable power all contribute to data-center electricity use. Here are practical ways operators can identify and reduce avoidable consumption.
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Data centers use electricity not only to run servers, storage and networking, but also to cool that equipment and deliver power reliably. Operators can often cut avoidable consumption by measuring loads, reducing idle IT demand, improving airflow and tuning cooling and electrical systems—but the right changes depend on site conditions and reliability needs.

How much electricity do data centers use?

The International Energy Agency estimated that data centers consumed about 415 terawatt-hours (TWh) of electricity worldwide in 2024, roughly 1.5% of global electricity use. These are global estimates, not a measure of any individual facility. Although the worldwide share is relatively small, demand is concentrated in particular regions, where large facilities and clusters can have a more noticeable effect on local power systems. IEA, Energy and AI: Executive summary (2025)

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Facility types and efficiency vary, so there is no single energy-use profile that applies everywhere. In the United States, the Department of Energy’s 2025 report modeled infrastructure—including cooling and power systems—as 31% of data-center electricity use in 2024, and estimated a national average PUE of 1.45 for 2024. Those are modeled U.S. figures, not global averages or targets for every data center. U.S. Department of Energy, United States Data Center Energy Usage Report: 2025 Update

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What uses the electricity?

Servers, storage and networking

IT equipment is the core load: servers perform computation, while storage and networking systems hold and move data. Electricity demand rises when operators add more workloads or equipment, deploy denser systems, or run power-hungry accelerated computing hardware. AI is one source of growth, but it is not the only reason data centers consume electricity.

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Cooling and heat removal

Nearly all electricity used by IT equipment ultimately becomes heat. Fans, pumps, chillers, cooling towers and heat exchangers move that heat out of the building so equipment can operate within its environmental limits. Cooling’s share of electricity varies widely: the IEA reports about 7% at efficient hyperscale data centers and more than 30% at less-efficient enterprise data centers. These are examples at different ends of a range, not a universal percentage. IEA, Energy demand from AI (2025)

Power conversion, distribution and resilience

Electricity passes through equipment such as transformers, uninterruptible power supplies (UPSs), switchgear and power distribution units (PDUs) before reaching IT equipment. Conversion and distribution incur losses. Facilities may also install or energize capacity beyond their average IT load to meet redundancy and availability requirements. That overhead is a consequence of the facility’s design and service needs, not necessarily waste that can safely be removed.

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Continuous operation and growing demand

Many data centers run around the clock. They need stable power and environmental control while workloads change, and backup and redundant systems help protect service availability. The result is a continuous electricity demand that can grow with digital services, denser hardware and new computing workloads.

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How can operators find and reduce avoidable consumption?

1. Establish a useful baseline

Track total facility energy and the energy delivered to IT equipment. Where practical, add subsystem and rack-level measurements to show where electricity goes. A metered or intelligent rack PDU can report real-time rack and outlet power, helping operators spot underused equipment, plan capacity and calculate PUE; it is a monitoring tool, not an energy-saving device by itself. Compare measurements taken consistently before and after any change.

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2. Find idle or underused IT equipment

Identify servers that are underused or no longer needed, then consider consolidating workloads or applying power-management and shutdown policies to equipment that is genuinely idle. Validate each change against performance, resilience and recovery requirements. Consolidation can reduce the number of active systems, but it should not leave the remaining equipment unable to handle demand or a failure.

3. Improve airflow before adding cooling capacity

Keep cold air moving to equipment and hot air moving away from it. Depending on the layout, operators can separate hot and cold air paths, seal gaps that let air bypass racks, prevent hot-air recirculation and evaluate aisle containment. Better air management can reduce fan and cooling energy, but the available savings depend on the starting conditions. ENERGY STAR, 16 More Ways to Cut Energy Waste in the Data Center

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4. Tune cooling controls and equipment

Review temperature set points and control sequences, as well as fan and pump operation. Assess economization or “free cooling” where outdoor conditions and the system design make it practical. Evaluate cooling performance under actual weather and IT loads rather than assuming one setting suits every season or facility. Account for hardware temperature limits, local water availability, maintenance costs and uptime requirements when comparing options.

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5. Check power-distribution losses and loading

Measure conversion losses and loading across UPS and PDU systems. If modules are lightly loaded or equipment is unused, assess whether loads can be consolidated or equipment shut down—but only where the facility’s redundancy and risk policies allow it. Maintaining required backup capacity and service resilience takes priority over reducing overhead.

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6. Evaluate whole-system improvements

Efficiency work can span IT equipment and environmental conditions, airflow, cooling, electrical systems and heat recovery. Reusing waste heat may be worthwhile if a nearby demand can use it at a compatible temperature and when it is available; technical and financial feasibility depend on the site. The Department of Energy’s design guidance covers these parts of an energy-efficient data center. U.S. Department of Energy, Best Practices Guide for Energy-Efficient Data Center Design (2024)

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How should operators use PUE?

Power usage effectiveness (PUE) is total data-center facility energy divided by the energy delivered to IT equipment. A lower PUE can indicate less facility overhead for each unit of IT energy, but it does not show whether the computing itself is efficient or whether total electricity consumption has fallen. If an IT workload grows, total facility use could rise even as PUE improves.

Use PUE alongside total kilowatt-hours, IT energy, utilization, workload served and service reliability. Consistent measurement helps distinguish a real reduction in electricity from a change in the ratio caused by a different IT load. ENERGY STAR guidance; U.S. Department of Energy report

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How to choose between efficiency measures

There is no universally best intervention or guaranteed site-level saving. Compare candidate changes against the conditions they affect, and measure the result after implementation.

  • Cooling and airflow: weigh expected measured energy reduction against climate, water use, rack density, space, capital and maintenance costs, and uptime risk.
  • Electrical distribution: consider conversion efficiency, actual load profile, redundancy, metering visibility, equipment compatibility and maintainability.
  • IT consolidation or power management: assess energy per useful workload, utilization, service quality and recovery requirements.

ENERGY STAR describes one illustrative case in which Target powered down two unloaded 300 kVA PDUs at one certified data center, reporting an annual saving of 261,000 kWh. That is a reported result from one site, not a typical or guaranteed saving elsewhere. ENERGY STAR, 16 More Ways to Cut Energy Waste in the Data Center

Quick Recap

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