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Dear Data Centre Market - We’re Measuring the Wrong Things

The data centre industry is growing at over 20% CAGR, scaling faster than ever to meet the surging global demand for compute, storage and data transfer. Yet, despite this rapid growth, we’re still using outdated metrics that don’t reflect what really matters.

For years, the focus has been on PUE (Power Usage Effectiveness) and carbon emissions as key measures of efficiency. But these numbers tell us nothing about whether a data centre is actually delivering value.

Let’s set the record straight: Carbon isn’t a pollutant. It’s a natural by-product of energy use and life itself. Yet, many sustainability strategies focus solely on reducing it, often overlooking what really matters – how well we utilise energy to drive meaningful outputs.

At the same time, PUE gives a misleading sense of progress. It measures energy spent on cooling and infrastructure while completely ignoring the efficiency of the actual workloads being processed. A data centre with a “perfect” PUE can still be running outdated, inefficient compute, wasting energy while looking good on paper.

With the market expanding at an unprecedented rate, we can’t afford to keep measuring the wrong things. We need to move towards output driven metrics that reflect the real purpose of data centres:

  • Compute Efficiency – How much useful computation is performed per unit of energy
  • Storage Efficiency – Energy consumed per terabyte stored and accessed
  • Data Transfer Efficiency – The energy cost of moving data across networks
  • Useful Data Ratio – How much of the stored or transferred data actually serves a purpose, eliminating waste

Author

Author

Nathan McNamara is the Group CEO at DB3 Group. Nathan brings extensive expertise in managing diverse international projects. Armed with a strong background in Engineering and Management, Nathan first joined DB3 in 2008 and later re-joined the company in 2020. Since his return, he has played a pivotal role in driving the company’s growth, leading the transformation into an Employee Ownership Trust.

Date Published: 3 March 2025

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