
Copyright © National Academy of Sciences. All rights reserved.
The Future of Computing Performance:   Game Over or Next Level?
RESEARCH, PRACTICE, AND EDUCATION  143
is partially responsible for the increased attention being given to so-called 
green-computing efforts.
9
The  following  simple  model  illustrates  the  relative  weight  of  two 
of  the  main  components  of  IT  expenses  for  large  data  centers:  server-
hardware depreciation and electricity consumption. Assume a data center 
filled mostly with a popular midrange server system that is marketed as 
a high-efficiency system: a Dell PowerEdge Smart 2950 III. As of Decem-
ber 2008, a reasonable configuration of the system was priced at about 
US$6,000 and may consume from 208 W (at idle) to 313 W (under scien-
tific workload) with an average consumption estimated at 275 W.
10
 When 
the system is purchased as part of a large order, vendors typically offer 
discounts of at least 15 percent, bringing the actual cost closer to US$5,000. 
With  servers  having  an  operational  lifetime  of  about  4  years,  the  total 
energy used by this server in operation is 9,636 kWh, which translates to 
US$674.52 if it is using the U.S. average industrial cost of electricity for 
2008, US$0.0699/kWh.
11
 The typical energy efficiency of data-center facili-
ties can multiply IT power consumption by 1.8-2.0,
12
 which would result 
in an actual electricity cost of running the server of up to about US$1,300.
According to that rough model, electricity costs for the server could 
correspond to  about  one-fourth  of its  hardware costs.  If  hardware-cost 
efficiency  (performance/hardware  costs)  continues  to  improve  at  his-
torical  rates  but  energy efficiency  (performance/electricity  costs)  stops 
improving, the electricity costs would surpass hardware costs within 3 
years. At that point, electricity use could become a primary limiting factor 
in the growth of aggregate computing performance. Another implication 
of such a scenario is that at that point most of the IT expenses would be 
funding development and innovation not in the computing field but in 
the energy generation and distribution sectors of the economy, and this 
9 
See, for example, Maury Wright’s article, which examines improving power-conversion 
efficiency (arguably low-hanging  fruit  among  the suite  of challenges  that  need  to  be  ad-
dressed): Maury Wright, 2009, Efficient architectures move sources closer to loads, EE Times 
Design,  January  26,  2009,  available  online  at  http://www.eetimes.com/showArticle.jht
ml?articleID=212901943&cid=NL_eet. See  also  Randy H.  Katz,  2009, Tech titans  building 
boom, IEEE Spectrum, February 2009, available online at http://www.spectrum.ieee.org/
green-tech/buildings/tech-titans-building-boom. 
10 
See an online Dell power calculator in Planning for energy requirements with Dell serv-
ers, storage, and networking, available online at http://www.dell.com/content/topics/top-
ic.aspx/global/products/pedge/topics/en/config_calculator?c=us&cs=555&l=en&s=biz. 
11 
See U.S. electric utility sales at a site of DOE’s Energy Information Administration: 2010, 
U.S. electric utility sales, revenue and average retail price of electricity, available online at 
http://www.eia.doe.gov/cneaf/electricity/page/at_a_glance/sales_tabs.html. 
12 
See  the  TPC-C  executive  summary  for  the  Dell  PowerEdge  2900  at  the  Transactions 
Processing  Performance  Council  Web  site,  June  2008,  PowerEdge  2900  Server  with  Ora-
cle Database 11g Standard Edition One, available online at http://www.tpc.org/results/
individual_results/Dell/Dell_2900_061608_es.pdf.