Toronto Hydro-Electric System Limited (Toronto Hydro), through its Data Centre Incentive Program (DCIP), is offering customers a financial incentive to green their data centres. The utility is well into the process of virtualizing its own servers housed in the company’s data centres. Since it began in 2008, 45 per cent of the utility’s servers have been consolidated decreasing the space required and reducing electricity use.

“Virtualization” is a software technology that allows you to run multiple virtual machines on a single physical machine, sharing resources of that single computer across multiple environments. By reducing and consolidating data centre servers, users can minimize redundancies and become more efficient.

Growth and demand for technology are currently stretching — and projected to exceed — building and air conditioning capability in Toronto Hydro’s data centres. For this project, Toronto Hydro deployed virtualization technology, along with technology from other partners, to reduce its number of physical servers. Since it began in 2008, the company has virtualized 45 per cent of the servers housed in its data centres. In addition, many of Toronto Hydro’s major tier one applications and systems have been virtualized. At the completion of its virtualization project in 2010, Toronto Hydro expects to see significant energy and cost savings from virtualizing approximately 70 per cent of its servers.

In North America, the growth of electric energy consumption in data centres is increasing. Toronto Hydro’s DCIP offsets the cost for more energy efficient equipment and design, helping customers cut electricity use in commercial and institutional data centres. Businesses that participate in the Toronto Hydro program could see immediate and on-going financial savings through reduced power consumption, and there could be associated environmental benefits such as reduced carbon emissions, via lower electricity usage.

DCIP, supported by the Ontario Power Authority, will provide $300 per measurable peak kilowatt reduction. Energy savings resulting from improvements in new or existing data centres will qualify for the incentives and will be based on measurable electricity reductions.

“Toronto Hydro ‘walks the talk’,” says Stephen Walker, Director of IT Infrastructure at Toronto Hydro. Walker says the company is seeing good results so far and should encourage other businesses to take advantage of its DCIP. "The program is not only attractive from an electricity savings perspective, but the financial incentives to participate should also make it easier for our customers to get started.”

“DCIP encourages data centres to improve their equipment layout designs to increase efficiency; use energy efficient products including new server and software technology, and upgrade air cooling systems to more efficient equipment," adds Walker.

Learn more about data centre improvements from Stephen Walker online at www.torontohydro.com/dcip (video).


FACTS

• DCIP is for commercial and institutional customers such as schools and hospitals.
• The average data centre consumes 10 to 100 times more energy/sq/ft than a typical office building.
• Ninety per cent of companies running large data centres need to build more power and cooling in the next 30 months.

 
DCIP will offer customers several potential benefits, such as:

• Ongoing savings of approximately $876/measurable peak kW reduction on electricity bills each year+
• Operating cost savings and cost avoidance with more efficient equipment & design
• Smaller equipment footprint, maximized electrical & IT capacity, improved reliability & manageability
• One-time incentive payment in year one reduces total investment costs
• Simple measurement & verification process provides vital project information at no cost

In 2008, Toronto Hydro removed approximately 28 MW from the grid with its portfolio of conservation and demand management programs. In total, that's enough homes to power a town the size of Grimsby. Since launching its programs in 2005, Toronto Hydro has removed more than 387 MW from the grid.

For more information visit www.torontohydro.com/DCIP.

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