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The IT Pro Podcast: How the energy crisis will impact data centres

With wholesale power costs skyrocketing, IT budgets may be in for a rough year

The IT Pro Podcast - How the energy crisis will impact data centres

The global energy market is currently experiencing some extreme turmoil, with low availability resulting in steep price increases. The turbulence is particularly pronounced in the UK, where spiralling power bills are raising concerns for both consumers and businesses alike over whether or not they’ll be able to afford them. 

The IT industry isn’t exempt from these challenges; in fact, thanks to the extreme power usage that data centre infrastructure requires, the risk of further price rises should be extremely worrying for cloud service providers, as well as the end customers that rely on those services. This week, we talk to Tiny Haynes, Senior Director of Research at Gartner, about what the current energy crisis could mean for the UK’s data centre ecosystem, the risk of potential outages, and how organisations can insulate themselves from some of the potential damage.

Highlights

“As far as price rises go, I can only see them going up. I would not be surprised if they are looking to double in the same way that the consumer prices are doubling. In fact, I've seen non-datacenter operators, but other organisations, seeing their prices go up by a factor of three, which possibly could happen in the datacenter market over the next six to 12 months.”

“Ireland has currently got a moratorium on new data centre build, because they just can't provide the power required for these DCs. I mean, some of these DCs, you're talking tens of megawatts of power requirements. So it might be worth some of these guys to say, Okay, what we'll do is we'll buy your datacenter for our own services, but we'll just trash all your systems and services, because we won't making any money out of that, or it might cost us too much to go and reengineer it for our own platform.”

“I've been talking to customers this week, more and more about data centre consolidation, seeing where the opportunities are going to be to the quick wins. The reality is a DC migration is a six to nine month process. So even if you start today, you're not necessarily going to see a way around the pain in the short term.”

Read the full transcript here.

Footnotes

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