NYSERDA Provides $5 Million for Innovative Technologies to Reduce Energy Use of Data Centers and Information Technology

Up to $1 Million Per Project Available for Funding to Companies
for Research, Product Development or Demonstration Projects

January 30, 2014

The New York State Energy Research and Development Authority (NYSERDA) has launched a program to help businesses, universities, data center operators and research centers develop innovative technology to reduce the power needs of information technology systems across New York State.

NYSERDA’s Innovations in Data Center, Information and Communications Technology Energy Efficiency Program looks to speed up the market readiness of early-stage technologies, products and techniques that reduce the energy impact of information technology systems.

"Governor Cuomo has made it a priority to reduce the cost of doing business in New York State. This funding for innovative technologies dovetails with that goal by supporting efforts to reduce operating costs and increase the energy efficiency of vital information technology services at businesses around the state," said John B. Rhodes, President and CEO, NYSERDA. “Energy improvements in data processing have the added benefit of significantly decreasing energy use and demand on the electric grid.”

Innovations eligible for funding could include technologies to monitor and measure energy efficiency that can be used to improve data center efficiency, novel energy efficiency improvements from hardware or software, cutting-edge cooling systems or on-site power generation. NYSERDA will competitively select projects through three proposal rounds through April 2015, providing a total of up to $5 million.

Funding categories include:

  • $100,000 for a research or feasibility study
  • $300,000 for a pilot demonstration
  • $500,000 for product and technology development
  • $1 million for larger-scale demonstrations that show significant innovation in new, holistic approaches to improved energy efficiency of data centers.

A 2006 U.S. Environmental Protection Agency study determined that data centers of all sizes account for 1.5 percent of electricity used nationally. It's estimated that 3 percent of power consumed in New York State is from data centers, according to the EPA. In an IT-heavy business, the cost of energy to run a data center can be as high as 30 percent of the center's total operating costs.

For more information on this program, visit nyserda.ny.gov/PON2846.


NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce reliance on fossil fuels. NYSERDA professionals work to protect the environment and create clean-energy jobs. NYSERDA has been developing partnerships to advance innovative energy solutions in New York State since 1975. To learn more about NYSERDA’s programs and funding opportunities, visit nyserda.ny.gov or follow us on TwitterLink opens in new window - close new window to return to this page., FacebookLink opens in new window - close new window to return to this page., YouTubeLink opens in new window - close new window to return to this page., or InstagramLink opens in new window - close new window to return to this page..