Storage Informer
Storage Informer

What is the significance of 11.4 cents??

by on Jun.26, 2009, under Storage

What is the significance of 11.4 cents??

Did you know that using an electricity rate of 11.4 cents per kWh provides a simple method of calculating annual electricity cost of any device? 

1 watt of power consumption, with an electricity rate of 11.4 cents per kWh, cost $1 per year, assuming power usage remains constant.  Also, as a general rule of thumb, every 1W of device power consumption in a data center requires an additional 1 watt for overhead power (Source: Intel IT). So a device that consumes 1W actually consumes 2W of power at a data center level. 

Here&aposs the math:  1 Watt power * 8760 hours per year / 1000 * $0.114 electricity rate per kWh = $1 per year.  This math holds the same for any currency, Euro, Yuan, etc.  11.4 cents per kWh is the crossover point…and as electricity rates increase over 11.4 cents, 1 watt will cost more than a $1 per year. 

The datacenter overhead power, often referred to as Power Usage Effectiveness (PUE) is a number which has emerged as the leading metric for data center energy efficiency.

You might say that 1W = $2 annually doesn&apost sound like much, but start doing the math for 1000 servers that consume 200W in a data center with a PUE of 2.0 which works out to annual electricity cost of ~$400,000 per year.  Now, for every 1 watt the server power consumption is reduced, this would translate into $2000 annual savings.  Note, this is a very rudimentary example, but it is useful to illustrate why customers are really starting to focus on power as one of their key purchase decisions.    

If you need energy efficient servers, there are multiple server vendors currently have some exceptional energy efficient products based on Intel(R) Xeon(R) 5500 processors.  And looking forward, we are also actively working on how to reduce power of the processor and at the system level for the upcoming generations of products. 

Here’s some good reference on electricity rates:

For United States, state by state electricity rate comparison

For Europe, 1st half of 2008 rate comparison by country.

Remember, power is one purchase decision, but it is not the only one.  A rack of servers that consumes less power that does less work isn&apost an efficient way of deploying servers either.  Ensure that the performance vector is considered.  Intel® Xeon® 5500 processor based servers provid exceptional performance and perf/watt leadership over the competition.

Quick question for you:  How does electricity rate of 11.4 cents per kWh and a data center PUE of 2.0 compare to your data center? 


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