You know the scene in countless movies: a hacker wandering down rows of important-looking computer equipment plugs a flash drive into a server. Those rows of important-looking computer equipment are the building’s data center, the physical facility that houses and operates servers, storage systems, networking equipment, cooling systems, power generators, security measures, and more.
These data centers are necessary for a commercial facility's day-to-day operations and have seen exponential growth in the last twenty years due to rapid technological advancements.
With cloud computing, AI, and Internet-of-Things (IoT) devices fueling demand for bigger and more sophisticated data management, the growing need for data center energy efficiency to manage costs and meet sustainability goals is higher.
Behind fancy technological advancements are electrical workhorses, busy managing the data centers’ electricity. They’ve been working behind the scenes for many years and will continue to do so. You need dependable current sensors, relays, and transformers to power your data center, and which devices you choose can make a big difference in energy efficiency. Our engineers at Functional Devices would be happy to talk with you about our energy-saving designs.
The Acceleration of Data Center Growth
Let’s explore why data centers have seen such accelerated growth since the early 2000s. Remember that the more sophisticated the technology relying on the data center, the more servers and auxiliary equipment it will need.
The Cloud
Although the cloud has existed since the 1960s, it didn’t start revolutionizing computing until the 2000s, when Amazon developed a rentable cloud infrastructure. The 2010s saw rapid development as all the leading players (Microsoft, IBM, Google, etc.) launched their cloud computing capabilities.
Although the cloud might be an amorphous online concept to the end user, it must still operate out of a physical facility. Here’s why the cloud needs larger data centers:
- More users have fluctuating computing needs.
- Data sets are large and ever-expanding.
- Data sets are distributed across different geographic locations.
- Complex applications demand high processing power.
IoT Devices
An IoT device is any physical object with embedded software that can connect to the internet to collect and exchange data. For example, think of all the connected components in a smart home. IoT devices started to gain popularity in the late 2000s, especially in 2008, when the number of connected devices surpassed the number of people on Earth.
Here’s why IoT devices need larger data centers:
- A massive volume of data from connected devices increases storage needs.
- A continuous stream of data that requires real-time analysis necessitates more processing power.
- Additional capacity is required to accommodate a growing number of IoT devices.
AI and Machine Learning
Lastly, artificial intelligence (AI) and machine learning demand a lot from a data center. We’re still new to the AI revolution, and its momentum will drive much of the changes we see with data center expansion over the next decade and beyond.
Here’s why AI needs larger data centers:
- Massive computing power needs for training AI
- Continuous, large data flows and storage needs
- High-speed network demands
- Future scalability
The Critical Role of Data Center Energy Efficiency
Now that you know some of the main technological advancements driving the accelerated growth of data centers, let’s talk about why energy efficiency is so important.
Data centers use a lot of power, not only to power components but also to cool them down. The International Energy Agency reported that 2022 data center energy usage accounted for 2 percent of the world’s electricity. They estimate that number will double by 2026. As quick growth puts pressure on energy infrastructure, efficiency is a top priority.
Let’s spell it out a bit more. Here are three reasons why data center energy efficiency is so critical:
- Rising energy consumption and operational costs
- Environmental impact and corporate sustainability commitments
- Stricter regulations and green energy mandates
It’s clear why we need to examine data center energy consumption critically.
Key Trends in Data Center Energy Efficiency
So, how are data center operators meeting the demand for better energy efficiency? Here are the top ways:
- More renewable energy. The growing use of solar, wind, and hydropower reduces the strain on limited resources.
- Advanced cooling technologies. Liquid cooling and immersion systems reduce power consumption.
- AI-powered energy optimization. Smart automation improves efficiency.
- Sustainable hardware innovation. Low-power processors, efficient server designs, and energy storage advancements optimize consumption.
- Computing with lower energy demand. Data transmission loads and latency are reduced by adjusting how data is processed.
- Optimization of hardware use. Shutting down ghost servers or unused equipment saves energy.
- Onsite power generation. Transmission loss from the power grid is reduced, allowing for more direct power.
Data center operators will continue to evaluate energy demands and implement new equipment and processes as cloud computing, IoT devices, and AI continue to develop.
Support Your Data Center With Efficient Current Sensors, Relays, & Transformer
As technology evolves, accelerated data center expansion and the growing need for better energy efficiency are inevitable. As they expand in size and capability, data centers will rely on creative solutions to reduce energy consumption and environmental impact.
When thinking about efficiency, each part of the data center comes into play, even behind-the-scenes but essential devices like current sensors, relays, and transformers. Selecting energy-efficient electrical components will go a long way toward data center energy efficiency.
At Functional Devices, we design our state-of-the-art products with efficiency as a top priority. In fact, we estimate that with us as your building automation partner, our designs could save you up to 29 percent in energy consumption! Reach out to learn more about our commitment to sustainability and discuss options for your data center.
About Functional Devices, Inc.

Leaders in the Industry
The world was a very different place in 1969, when Functional Devices, Inc. was founded by engineer and electronics enthusiast Albert Rittmann, but our commitment to evolution and versatility has allowed us to remain a key player in the building automation and lighting controls industry for over 55 years.
Today, as we embrace emerging technology and lean into the future of building automation, our products are still manufactured in the USA with global materials, and we are still committed to our mission of enhancing lives in buildings and beyond. Back in 1969, Albert could never have predicted the technological advances we live with today, but with the groundwork he laid and the vision of his successors, Functional Devices has adapted and grown into a company that can handle anything.