Using DCIM to Drive Down Data Center Energy Costs

Data centers are energy-intensive, and with the surge in AI-driven workloads, their global energy consumption is projected to more than double by 2030, potentially surpassing the current electricity consumption of Japan.

For most data center operators, energy is one of their largest recurring expenses. As demand for data center capacity continues to grow and energy prices fluctuate, energy efficiency is no longer just a sustainability goal, it's a core business concern.

This is where Data Center Infrastructure Management (DCIM) software comes in.

DCIM software provides the information and visibility needed to uncover inefficiencies, optimize resource usage, and reduce operating costs.

In this blog post, we’ll break down how DCIM software can help organizations make smarter decisions that drive down energy consumption and deliver real savings.

Why Energy Efficiency Matters in the Data Center

Powering and cooling IT equipment is expensive — and those costs are rising.

As energy prices fluctuate and workloads intensify, inefficient facilities can dramatically increase operating costs.

For many data centers, even single-digit percentage improvements in energy usage can translate into six- or seven-figure savings annually.

Consider the following:

• A 2% improvement in server power supply efficiency can reduce overall electricity usage by about 1.6%.
• For a data center with a 600 kW load, each 1% increase in energy efficiency can save around $6,000 annually.
• Cooling systems can account for up to 40% of a data center’s total energy consumption, making cooling efficiency a key area for savings.
• Raising server inlet temperatures from 64.4°F to 75.2°F can reduce cooling costs by up to 43%.

But cost isn’t the only driver.

Energy efficiency also affects long-term scalability and resilience. When power and cooling are constrained, so is growth — even if there’s still rack space available.

Also, from a sustainability perspective, both customers and regulators are paying closer attention to the environmental impact of data centers. Increasingly, energy efficiency is tied to reputation, compliance, and competitive advantage.

Where Energy Waste Hides and Why It Can Be Easy to Miss

Energy waste is common in data centers—not due to carelessness, but because it’s genuinely hard to detect without the right tools. Without full visibility into what’s happening in the data center, even well-run facilities can consume more energy than necessary.

Here are a few common causes of inefficiency in data centers:

• Overprovisioning. Many facilities err on the side of caution, allocating more cooling or electrical capacity than necessary “just in case.” While overcooling may feel safer, it often results in consistently running systems harder than needed, driving up energy usage without added benefit.
• Underutilized assets. Data centers commonly have servers that are powered on but doing very little or no work. These “ghost servers” often fly under the radar, quietly consuming energy and space while adding no value.
• Airflow inefficiencies. Without clear insight into temperature and airflow patterns, data centers can end up overcooling certain areas while others run too hot, creating hot spots that can cause equipment to fail.
• Lack of visibility. Without accurate, real-time information about data center energy consumption and environmental conditions, energy waste is hard to pinpoint and address.

How DCIM Uncovers and Addresses Energy Waste

DCIM software gives data center teams the visibility, insight, and automation needed to stop wasting energy and start running more efficiently.

Here are some of the most impactful ways it helps reduce unnecessary energy usage:

• Stop overcooling your equipment. Many data centers run colder than necessary to avoid the risk of hot spots, but this caution comes at a higher energy cost. DCIM software helps you pinpoint where cooling can be safely reduced without compromising uptime. It continuously collects data from temperature sensors and presents it in easy-to-understand views such as ASHRAE psychrometric cooling charts and 3D thermal maps, making it easy to identify opportunities to raise set points. Even modest adjustments can lead to meaningful savings: you can reduce cooling energy consumption by 4–5% for every 1°F you raise the temperature within the recommended range.
• Identify and decommission ghost servers. Idle, forgotten, or underutilized servers—often called “ghost servers”—can consume power, generate heat, and take up space without delivering any business value. In some data centers, they make up as much as 30% of the server population. DCIM helps you identify these non-performing assets by monitoring and reporting on their power usage data from intelligent rack PDUs. DCIM software with a built-in ghost server report lists your devices drawing consistently low power (e.g., under 50W). Once identified, these servers can be investigated further and potentially decommissioned, freeing up power and cooling capacity while cutting energy costs.
• Improve energy efficiency in virtual environments. Not all physical servers are equal when it comes to energy efficiency, and that matters in virtualized environments. Some virtual machines may be hosted on aging or underperforming hardware that draws more power per workload. With DCIM software that integrates with platforms like VMware, you can monitor where your virtual machines reside and make smarter decisions about workload placement. Migrating virtual machines to more efficient hosts helps reduce overall power draw, optimize resource use, and accelerate sustainability efforts.
• Track and improve key sustainability metrics like PUE. Power Usage Effectiveness (PUE) remains one of the most widely used metrics for gauging data center energy efficiency. While industry averages hover around 1.58, efficient facilities aim for a PUE of 1.4 or lower. DCIM software automates the calculation and tracking of PUE and other important metrics, eliminating the need for manual data collection and math. Dashboard charts let you monitor trends, spot seasonal patterns, and measure the impact of efficiency initiatives. Beyond PUE, DCIM software can also track compliance with ASHRAE standards, temperature delta per rack, stranded power capacity, and more.
• Encourage more efficient behavior through bill-back reporting. Holding teams accountable for their energy usage can drive better practices. DCIM software—when paired with the proper metering—enables accurate energy reporting by data center, business unit, or application. With detailed bill-back reports, you can compare efficiencies and stakeholders can see exactly how much energy they’re consuming and what it’s costing. That transparency often leads to smarter provisioning decisions and a stronger commitment to sustainability.

Real-World Results: How Companies Are Reducing Energy Costs with DCIM

Implementing DCIM software has enabled organizations to optimize their data center operations, leading to substantial energy savings and improved sustainability.

Here are some notable examples:

Vodafone

Vodafone, one of the world’s largest telecom providers, reduced data center energy costs significantly by optimizing cooling with help from Sunbird’s DCIM software.

By expanding from 16 to over 800 temperature sensors in a single location and deploying Sunbird DCIM, Vodafone gained detailed visibility into their data center’s temperature.

“We can actually measure the Delta T in a cold aisle,” said Andrew Marsh, Senior Manager for Infrastructure and Data Centers. “That allows us to raise temperatures, which saves us a large amount of money.”

 With real-time data, Vodafone now confidently avoids overcooling while improving sustainability.

Read the full case study.

Large Healthcare Organization

A large healthcare organization with over 5,000 cabinets and 300 IDF sites achieved a remarkable 90% reduction in cooling power needs at its main data center—an outcome driven by the insights provided by Sunbird’s DCIM software.

By pairing Sunbird with a CFD modeling tool, the team gained deep visibility into airflow and temperature data, enabling them to make data-driven decisions about cooling efficiency.

“With a CFD modeling tool and Sunbird, I was able to drop my cooling power needs by about 90% in my main site,” said the customer. “That’s astronomical. It makes it an easy sell when you can be green and save money.”

Read the full case study.

Conclusion

With rising workloads, growing sustainability concerns, and increasing energy costs, improving data center energy efficiency is a high priority for many organizations.

DCIM software empowers you with the data you need to uncover inefficiencies, eliminate waste, and align power and cooling with demand. From identifying ghost servers to optimizing cooling and tracking key metrics like PUE, DCIM enables smarter, data-driven decisions that can lead to measurable savings.

The return on investment can be significant. Organizations that deploy DCIM software are not only cutting costs, they are building a more sustainable future for data centers.

Ready to see how Sunbird’s DCIM software can help you drive down energy costs? Get your free test drive today.