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How a New Carbon Tax May Affect Data Centers

written by: •edited by: Bill Bunter•updated: 5/6/2010

There is a special carbon taxes currently in legislation which data center companies may have to pay. Read on to find out more about the proposed carbon tax that may affect your business.

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    Upcoming Changes

    Most IT market watchers believe that 2010 will be a landmark year for the IT field and data centers using green initiatives. A major economic down turn and new taxes proposed by the Obama administration along with a well monitored environment-friendly plan, will make sure this happens. The management of energy is engaging the serious attention of the new regime and the Green IT pioneers and it considers this as a problem most in need of an immediate solution.

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    What is a Carbon Tax?

    This concept of a carbon tax is not an innovative approach but conventional in its own way. There is already in existence a non-profit organization called the Carbon Tax Center that is striving to get a national provision approved by US Congress.

    If carbon is included in a product but is not burnt, then tax will not be applicable. Similarly, if carbon used to produce energy is not released into the atmosphere and is taken control of somehow, then carbon will get tax credits and it will not be taxed at any stage of production.

    The notion for introducing a tax is obvious. The levels of CO2 already present in the Earth’s atmosphere and the quantum being added daily are threatening the ecosystems like the Barrier Reef for example. There can not be a more effective centralized approach for reducing carbon emissions than imposition of new tax. A carbon tax itself is not responsible for halting the change in global climate and thus, other stringent regulatory measures will be also be required.

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    How the Tax May Affect Data Centers

    Many believe that carbon tax will eventually prove a blessing in disguise for data centers. Data centers that are still not worried about carbon emissions will pay heavily for their neglect. People who start greening data center even at this late stage will escape paying the new taxes. Installing more efficient hardware and notably servers will minimize the center's carbon footprint.

    Market analysts expect the US Energy department will insist using right type of servers that will considerably lower standby and idle energy demands. This may very well prove to be the single largest measure for energy savings within the data center industry. Today’s idle energy consumption of data centers is around 55-70% percent of full-power – which is alarmingly high.

    There will be a big boost for Green IT due to the economic meltdown and upcoming stimulus package and data centers must act now if they wish to live amidst safe green clouds.

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    References

    Will your Data Center have Pay a Carbon Tax. http://www.greenercomputing.com/blog/2009/01/05/will-your-data-center-have-pay-a-carbon-tax

    San Francisco Explores Carbon. http://www.blognewcomb.com/blog/2008/03/san_francisco_explores_carbon.html - This has some great information regarding carbon Tax and the Government Initiatives.