Dept of Energy Invests $47 Million to Make IT and Communications More Energy Efficient

The Department of Energy is awarding $47 million for 14 projects across the country to support the development of new technologies that can improve energy efficiency in the information technology (IT) and communication technology sectors. The data processing, data storage, and telecommunications industries are a crucial part of the American information economy. The rapid growth of these industries has led to an increase in electricity use, but improvements in the sector's energy efficiency can provide significant energy and cost savings. The energy efficiency projects announced today will reduce energy use and carbon pollution, while helping to develop a strong, competitive domestic industry. The $47 million in federal funds for these projects will be matched by more than $70 million in private industry funding, for a total project value of more than $115 million. Information technology and telecommunications facilities account for approximately 120 billion kilowatt hours of electricity annually—or 3% of all U.S. electricity use. Moreover, rapid growth in the U.S. data center industry is projected to require two new large power plants per year just to keep pace with the expected demand growth. Without gains in efficiency, the industry would face increasing costs and greenhouse gas emissions, along with challenges to the reliability of the electricity service.