May 8, 2021

Volume XI, Number 128

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May 07, 2021

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May 06, 2021

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New Energy Act Pushes for Greater Energy Efficiency in the Data Center Industry

The recently enacted Energy Act of 2020 (the Act) covers a broad range of energy efficiency and research and development initiatives, including a few specifically targeting the data center industry.  The portion of the Act addressing the data center industry outlines the following initiatives and next steps:

  • Collaboration between the Department of Energy and the Environmental Protection Agency and key industry stakeholders, including data center operators and facility managers, to assess “specifications, measurements, best practices, and benchmarks” for increased energy efficiency.

  • Publication of an in-depth report on data centers analyzing historical energy and water usage and efficiency, and suggesting best practices.

  • Creation of an information-sharing initiative relating to energy usage at federally owned data centers to encourage further data center “innovation, optimization, and consolidation.”

  • Establishment of a program to certify energy practitioners qualified to evaluate the energy usage and efficiency opportunities in federally owned and operated data centers.

This portion of the Act was advanced, in large part, by Congress’s desire to save costs and achieve greater efficiency for federal government data centers, but it also codifies a broader trend in the industry toward energy efficiency and “green” power. For years, hyperscalers and many data center providers have been working toward more energy efficient and sustainable practices, including commitments to carbon neutrality and the use of renewable energy sources, among other measures. Now, with the federal government moving more swiftly in the same direction, this trend could soon be the norm.

Data center operators and customers should continue to monitor implementation of the Act for opportunities to collaborate on best practices and participate in certification and incentive programs that may result from these new energy efficiency initiatives.

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©2021 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume XI, Number 39
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About this Author

Kemal Hawa, Greenberg Traurig Law Firm, Northern Virginia and Washington DC, Corporate and Intellectual Property Attorney
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Kemal Hawa focuses his practice on corporate and securities law, with an emphasis on the telecommunications, media and technology industries, domestically and internationally. Kemal regularly advises public and private companies, private equity firms, investment banks, and creditors’ committees on a variety of matters, including mergers and acquisitions, bankruptcies and restructurings, investments, financing arrangements, licensing agreements and commercial transactions.

Kemal specializes in the negotiation of transactions in the cloud...

703-749-1379
Emily Naughton Communications Lawyer Greenberg Traurig Law Firm
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Emily Naughton focuses her practice on transactions in the telecommunications, media and technology space, with an emphasis on cloud computing. Emily has represented clients in connection with real estate acquisitions, development projects and leases, mergers and acquisitions involving cloud service providers, and telecommunications network infrastructure deals. Emily has represented some of the world’s largest content providers globally in connection with network procurement and colocation and data center leases involving providers ranging from multinational companies to single facility...

703.749.1390
Associate

Whitney L. Smith is a member of Greenberg Traurig’s Real Estate Practice. Her practice is concentrated on telecommunications, media, and technology, with an emphasis on cloud computing.

Whitney has also represented developers, purchasers, sellers, tenants, and borrowers in a broad range of commercial real estate transactions and disputes. Whitney has represented landlords and tenants in retail, commercial, and industrial leasing transactions; assisted in developing reciprocal easement agreements, covenants, and conditions and restrictions (CCRs) for shopping centers and mixed-use...

703-903-7502
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