Unravelling the Financial Implications of Old Data Centres

The global data centre industry is rapidly expanding in the digital age, with nearly 11,000 worldwide, 513 of which are located in the UK1. But as technology advances, the inefficiencies of older data centres become increasingly acute, especially in ecological and financial terms, with outdated facilities being actively targeted by governments for their poor energy consumption.

In this article, we’ll explore the financial implications of old data centres and how, at Rittal, our state-of-the-art cooling solutions can help to reduce costs and enhance sustainability.

The high cost of inefficiency

Old data centres are notorious for their inefficiency, primarily due to their outdated cooling systems. Because they require more electricity to operate, higher operational costs are inevitable. On average, a staggering 43% of the electricity consumed by data centres is utilised for IT cooling equipment.2 In older data centres, the cost of energy is likely to be higher, making them not only environmentally unsustainable but also financially draining.

The inefficiency of outdated data centres is not simply confined to higher electricity bills. Excessive energy consumption also contributes to a worse carbon footprint, making them less appealing in a market that is increasingly focused on environmentally friendly initiatives.

The risk of non-compliance

With new laws being proposed and implemented across many countries to enhance data centre efficiency, businesses who persist with older data centres face the risk of non-compliance. In Germany, for example, newly installed data centres must be operated in a climate-neutral manner by 2027,3 must increase their Power Usage Effectiveness, and reuse a proportion of their waste heat. Many governments, including in the UK, are actively pursuing similar measures to reduce the environmental impact of data centres, so companies that continue to operate outdated facilities risk incurring fines. Furthermore, failure to adhere to these regulations can lead to reputational damage, which can have a long-lasting impact on a business’s performance.

Vulnerabilities

Outdated infrastructure is more susceptible to security vulnerabilities. Older hardware and software may no longer receive security updates, leaving them exposed to cyber threats. The financial repercussions of a data breach can be devastating, including regulatory fines, legal fees, and reputational damage.

Migration to efficiency

Another compelling reason to upgrade old data centres is the significant increase in efficiency offered by newer models. Modern data centres with contained racks and cutting-edge cooling technology often experience a 40-50% increase in workload migration efficiency. This surge in performance not only enhances operational capability but also leads to substantial cost savings in the long term.

Competitive Disadvantage

Innovation Stagnation: Relying on outdated infrastructure can stifle innovation. Modern technologies such as artificial intelligence, big data analytics, and the Internet of Things require robust, scalable, and efficient data centres. Businesses that fail to upgrade their infrastructure risk falling behind competitors who can leverage these technologies to gain a competitive edge.

Customer Expectations: Today's customers expect fast, reliable, and secure services. Old data centre infrastructure may not be able to meet these expectations, leading to customer dissatisfaction and attrition. Investing in modern infrastructure can drive long-term revenue growth.

Rittal: At the forefront of cooling technology

At Rittal, we understand that efficient and cost-effective data centre operations are critical. As specialist providers of advanced cooling technology, we work closely with our clients to design systems that not only meet but exceed your regulatory obligations, efficiency targets, and sustainability goals.

For more information on Unravelling the Financial Implications of Old Data Centres talk to Rittal Ltd