FEATURE
Previously unseen levels of volatility in the energy market has created immense pressure on businesses , with European governments earmarking as much as € 500 billion last year to shield both citizens and companies from soaring gas and power prices . The urgency for change has escalated . IT decision-makers must pivot their sustainability and business strategies to accommodate spending , reduce the risk of downtime and meet net zero targets .
In fact , Telehouse ’ s Climate Crunch report discovered that almost four-in-five IT decision-makers ( 79 %) are worried about the impact of the current energy crisis on the future of their sustainability strategies . Considering more than twothirds ( 69 %) say that sustainability is at the heart of their business culture , it ’ s perhaps unsurprising that rising costs have induced fear . In a time of difficulty for businesses to know what ’ s coming next , more are looking towards solutions such as colocation as a remedy to this dual challenge .
Navigating the energy crisis
Colocation not only provides an opportunity for businesses to safeguard mission critical infrastructure under the roof of a trusted data centre provider , but it helps solve one of their biggest challenges – saving on costs . Almost seven-in-10 ( 69 %) organisations have increased IT spending during the crisis as energy providers pass on increased prices from escalating wholesale costs . Some have even absorbed these rises to enable customer retention , but this strategy risks turning customers away .
Instead , shifting environments off-premise can be beneficial . The forward-thinking data centre operators will likely have secured competitive forward hedged rates and are already utilising renewable energy . This makes it an attractive proposition for enterprises looking to keep expenditure to a minimum while ensuring customer relationships are maintained . Telehouse research shows that almost nine-in-10 ( 89 %) organisations with outsourced infrastructure or plans to outsource are confident in controlling costs during the energy crisis , with over a quarter ( 27 %) exuding high levels of confidence .
Energy is a crucial element of Business Continuity plans . Loss of network access can be detrimental financially and lead to tarnished reputations and lost business opportunities . Today ’ s IT systems can be impacted by external temperatures , and escalating climate change is likely to make extreme weather incidents more frequent . In Europe , the EU stated in October that it was actively preparing for power cuts and other emergencies over the course of the winter due to energy shortages .
With the possible scenario of power cuts taking place , more organisations are looking towards colocation facilities . These have stringent continuity arrangements in place , such as backup generators and emergency fuel supplies to ensure uninterrupted power in case of disaster . Data centre operators are also bound by stringent SLAs and therefore undertake proactive measures to ensure operational stability .
Supporting sustainability strategies
As well as the cost and peace of mind benefits , outsourcing IT infrastructure with a specialist provider can also enable secure and sustainable operations at scale . Colocation can be key in meeting Environmental , Social and Governance ( ESG ) goals , such as leveraging renewable energy and making use of power-saving technologies such as cooling and monitoring systems .
Currently , over a third ( 34 %) of organisations haven ’ t made any progress on their sustainability goals or haven ’ t yet defined them . In addition , over half of businesses aren ’ t yet fully optimised to contribute to net zero targets ( 57 %), are not using renewable energy sources ( 52 %) and don ’ t closely monitor their footprint ( 52 %). Despite this , 59 % of organisations believe that they ’ re ahead of competitors in adoption of sustainable practices .
This highlights an emerging disparity between the perception of organisational decision-making to be driven by sustainability and the lack of practical steps taken to enable it . It ’ s likely that this stunted progress is due to a shortfall of in-house expertise to drive green initiatives . Data from a 2022
THE FORWARD- THINKING DATA CENTRE OPERATORS WILL LIKELY HAVE SECURED COMPETITIVE FORWARD HEDGED RATES AND ARE ALREADY UTILISING RENEWABLE ENERGY .
Digital Economy and Society Index report revealed that only just over half ( 54 %) of Europeans aged between 16 – 74 have at least basic digital skills .
Colocation services also provide a detailed level of reporting into areas such as energy efficiency and water usage . As per the leading GHG Protocol , the greenhouse gas emissions of businesses are classified into three different scopes : Mandatory Scopes 1 and 2 , and voluntary Scope 3 emissions . Scope 3 emissions , while usually making up around 70 % of an organisation ’ s carbon footprint , are only a key focus for 20 % of businesses in Telehouse ’ s
Mark Pestridge , Senior Customer Experience Director at Telehouse www . intelligentdatacentres . com
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