New York State Commits $100 Million to Improve Data Center Energy Efficiency

March 18, 2010

New York State will provide more than $100 million to help data centers and manufacturers control their energy costs and improve their competitiveness, the New York State Energy Research and Development Authority (NYSERDA) announced on March 16. Funding over the next two years will support energy studies and capital improvements that will increase energy efficiency and productivity while reducing waste. NYSERDA also awarded three efficiency consultants approximately $2 million apiece to help manufacturers and data centers find ways to cut usage and learn about available energy efficiency resources.

In 2009, NYSERDA invested about $4 million to improve the energy efficiency of the manufacturing and data center industries, reducing their energy consumption by nearly 41 million kilowatt hours of electricity, which is the equivalent of supplying nearly 6,300 single family homes with electricity for a year. New York has the second largest concentration of data centers in the country, and these centers are required for virtually every aspect of the economy. Recent studies by DOE's Lawrence Berkley National Laboratory and the U.S. Environmental Protection Agency found that New York data centers spend nearly $600 million per year on energy costs. The studies projected that their energy consumption could double in three to five years. Funding for this new initiative is provided through the System Benefits Charge and is part of New York's Energy Efficiency Portfolio Standard. See the NYSERDA press release.