Data Center Efficiency and ROI: Why invest in efficient cooling?

WiredRE research shows that the big six public data centers (EQIX, DLR, DFT, COR, CONE, QTS) are spending an average of $7 million per MW, excluding real estate on constructing new wholesale data centers. With expenditures of that size going into a new data center, what is the value of spending additional money for higher efficiency cooling for a wholesale data center?

This is exactly the question that CMS Cooling sought to answer in a recent piece titled Investing in Wholesale Data Center Cooling Efficiency.

Everett Thompson, WiredRE CEO, explained that “data centers are mostly a fixed-cost business, so any additional saleable capacity goes directly to the bottom line.”

CMS found that, based on the efficiency of their cooling units, spending 50% more on cooling equipment could reduce cooling power by 20% and result in benefits that included a 4% reduction in total dollars / MW build cost, a 5-20% increase in operating income, and a 10-30% increase in property valuation investing.

By increasing the efficiency of your cooling design and power consumption, you are able to increase your capacity and sellable space, ultimately adding value to your bottom line.