CFOtech Australia - Technology news for CFOs & financial decision-makers
Story image

Stepping into the future of Australia’s IT infrastructure with confidence

Mon, 6th Jan 2025

Data centres form the backbone of our digital world and have recently been making headlines. They are evolving as we approach 2025, driven by advancements in AI and the increasing demand for computational power. Soaring demand for AI-ready data centres offers many opportunities for companies and data centre providers, but how quickly they grasp them could determine the pace at which AI is deployed. This is according to McKinsey

Data centres are also significant energy consumers, and are the drivers of growth in electricity demand in many regions, according to the International Energy Agency (IEA). A major part of this energy is dedicated to cooling the hardware to prevent overheating and ensure stability.  Australia's high density data centre operations have increased over the last year, with Australia's Data Centre Market size expected to reach 3.18 thousand MW by 2029, growing at a rate of 3.60%. Whether run by a service provider or as a private environment, the demand for faster, more efficient infrastructure has surged. 

As developments in cloud services and AI continue to proliferate rapidly, industry leaders are expected to satisfy current demand for adoption while equally delivering on energy efficiency and cost effectiveness. Business leaders can dramatically strengthen their sustainability and energy efficiency without compromising on the use of exciting new tech by implementing some key strategies. 

Investing in Energy-Efficient Infrastructure
The demand for infrastructure is skyrocketing, with AI driving the largest growth curve in history. Compute needs are predicted to increase by 35% within the next two years, according to ADAPT's study of Australian infrastructure leaders. At the same time, organisations are challenged by increasing data demands and energy efficiency. These efficiencies can be made in the hardware itself, such as variable speed drives (VSDs) or economisers. While traditional air-cooling solutions struggle with heat loads from high-performance computing, the developments in both immersion cooling and direct-liquid-to-chip (DL2C) offer significant improvements for more efficient cooling and overall performance.

With that said, we don't need to completely transform our facilities with new equipment to find efficiencies. Simple changes made by IT administrators can lower energy consumption costs through throttling fan speeds of ICT equipment during periods of lower processing demand without sacrificing performance or stability.  Deploy software to dynamically throttle fan speeds or adjust cooling settings based on environmental factors and server activity. This small adjustment can lead to substantial energy savings over time.

There is also the matter of wasted heat – in many cases, a critically underrated source of energy. Waste heat can be used directly or to supply cooling via absorption chillers, reducing costs by more than 50%. This is according to The Department of Climate Change, Energy, the Environment and Water. 

Adopting energy-efficient hardware and infrastructure is an important consideration. Modern servers and storage devices are designed to operate efficiently with less heat generation. They require less cooling, directly reducing energy demands. By making these investments in energy-efficient hardware and pairing this with advanced cooling systems, like liquid cooling, heat is transferred more efficiently than traditional air-based systems.

Leverage the Power of Renewable Energy Sources
Implementing lower-carbon sources of energy is another way to increase our operational efficiency while reducing their environmental impact. Installing solar panel arrays and smaller wind turbines are also effective ways to reduce energy costs and greenhouse gas emissions. 

Of course, it's not practical for every business to take advantage of an onsite solution. Regardless of your level of readiness, there are incremental steps that can be taken toward a renewables transition. 

Community solar programs allow even the smallest businesses to purchase a share of a large-scale solar installation. Should a power purchase agreement be less than immediately feasible, there are many providers offering financing solutions to help businesses overcome these barriers. 

Offset Your Carbon Footprint with Carbon Credits
Engaging in decarbonisation through the purchase of carbon credits is another option. Ostensibly, these systems allow one company to finance another's efforts to offset emissions. These credits are tightly controlled in accordance with internationally recognised standards, and they allow businesses to effectively compensate for their emissions. There are many carbon creditor systems and organisations to partner with. Choose one that aligns closely with your financial and business needs. 

The Business Case for Sustainable Cooling
Beyond the environmental benefits, sustainable cooling practices deliver measurable advantages for businesses. Lower energy consumption reduces operational costs, providing significant financial savings. 

The journey toward more sustainable data centres hinges on innovation and commitment. From adopting energy-efficient hardware to utilising renewable energy and optimising cooling technologies, every step counts. Adjustments as straightforward as throttling fan speeds during low workloads can make a meaningful impact on energy savings without compromising performance.

The viability of Australia's current rate of data centre development and energy efficiency does not have to be contentious if businesses implement solutions like these. The advancement of Australia's data centre sector is one to be excited by, get involved in, and take advantage of for the enhancement of businesses holistically. 

To learn more, visit:  High-Density Data Centre Services - Purpose-Built Solutions

Follow us on:
Follow us on LinkedIn Follow us on X
Share on:
Share on LinkedIn Share on X