The Myth of Data Center Inefficiency

With their constantly whirring server fans and enormous cooling systems in cavernous buildings, data centers seem to be sucking up a lot of energy and contributing more than their fair share to climate change. But are they?

Dr. Eric Masanet and several colleagues decided to put it to the test. What they found is that, while demand for compute instances has gone up sixfold, the energy trend is close to flat.

With servers becoming more efficient and virtualization coming more into vogue, the data center has seen its energy per compute instance plummet.

“That has gone down by about 20 percent every year, and that pace of efficiency improvement is far greater than we can see in any other sector of the energy system,” Masanet said. “We wanted to point out that, even though the data center industry sometimes gets beaten up about its energy use or its contributions to climate change, that is really a remarkable energy improvement and better than nearly any other sector for which we have data.”

While the news is mostly positive for data centers, Masanet and his team also want to push for more data to be made available on data center energy consumption and sound a warning about major challenges on the horizon.

“We think there are three trends that really need to be better understood,” he said. “One is artificial intelligence, which should require a lot of computational intensity. The second is 5G, which could spur lots of new demand for data center services, and the third is edge computing, moving potentially some workloads and compute instances much closer to the end user in smaller data centers. We really don’t know yet how that’s going to play out from an energy perspective.”

The path certainly is not linear, but with progressive solutions, data centers can continue to be mindful about their energy use.

Follow us on social media for the latest updates in B2B!
Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Image

Latest

Denial Data
Turning Denial Data Into Action: How Healthcare Organizations Can Fight Back Against Payer Denials
March 5, 2026

Healthcare providers across the U.S. are facing a growing wave of claim denials that is putting pressure on already strained hospital finances. Industry research from the American Hospital Association shows that nearly 15% of medical claims submitted to private payers are initially denied, forcing hospitals and health systems to spend about $19.7 billion annually attempting…

Read More
Jabra
ISE 2026: Jabra Unveils Scalable Room Solutions for the Hybrid Workplace
March 5, 2026

At ISE 2026, Jabra highlighted how meeting technology is evolving to support the realities of hybrid work, where the experience must be equally effective for people inside and outside the room. In a conversation with Craig Durr, Chief Analyst and Founder of The Collab Collective, Jabra’s VP of Video Product Olly Henderson explained that…

Read More
Marketing AI Pulse
The Marketing AI Pulse Brief for Feb 2026: Trust in the World of LLM Ads, OpenClaw, Reddit & More!
March 3, 2026

Starting in 2026, The Marketing AI SparkCast alternates between the Marketing AI Pulse Monthly Brief and in-depth interviews with leading marketing AI innovators. This episode is the February 2026 edition of the Monthly Brief and focuses on trust and authenticity in an AI-driven world. Aby Varma and Matt Cyr explore the emergence of advertising inside…

Read More
student visibility
Why Student Visibility Matters in Today’s Schools
March 3, 2026

School Safety Today podcast, presented by Raptor Technologies. In this episode of School Safety Today by Raptor Technologies, host Dr. Amy Grosso interviews SRO Todd Brendel of Dayton Independent Schools (KY), who shares frontline insights on the importance of knowing where students and staff are throughout the school day. He explains how they manage…

Read More