Data centers, especially today’s larger hyperscale facilities, pose significant concerns related to grid capacity, environmental impact, and rising energy costs. With demand for data storage and processing power increasing due to Artificial Intelligence (AI) and other emerging technologies, the need for energy-efficient infrastructure is more critical than ever.
High Energy Consumption
Even before the widespread adoption of cloud computing and AI, data centers were known for their high electricity demands. Power is needed not only to run servers, but also to cool systems and maintain uptime. These challenges have intensified as workloads become more demanding. In 2025, data centers across the globe are expected to consume approximately 536 TWh of electricity. The International Energy Agency (IEA) estimates this figure could double by 2030.
Environmental Impact
This high level of energy consumption has led to excessive greenhouse gas emissions and expanding carbon footprints. While many operators are embracing concepts such as power purchase agreements (PPAs) and shifting to renewable energy, a significant number still rely on fossil fuels to power their server environments.
AI is compounding the issue. Training advanced models requires enormous amounts of energy, adding to the environmental toll as AI becomes more deeply integrated into computing infrastructure.
As a result of the concerns surrounding data centers, and their impact on localized resources - new metrics have become the norm, with PUE (Power Usage Effectiveness) and WUE (Water Usage Effectiveness) determining the entire impact of a data center and its viability.
Rising Operational Costs
The cost of energy is one of the largest ongoing expenses in any industry, but especially for those operating within data centers. Political instability in oil and gas-producing regions has caused costs to fluctuate in recent years. Although prices are no longer as high as they were during the 2022 crisis, they are yet to return to previous levels.
As of 2023, running a single rack in the United States can cost over $30,000 annually, not including additional operational expenses. That means energy strategy isn’t just about sustainability, it’s about profitability.
AddOn Networks’ Energy-Efficient Optical Solutions
AddOn Networks is stepping in to help operators reduce data center power consumption. Through our latest line of low-power optical transceivers, organizations can achieve higher speeds and lower latency while minimizing energy use.
Our QSFP28 and QSFP-DD optics are engineered to minimize energy consumption without having to be concerned with performance issues. These solutions are compatible with low-power architectures from all leading Network Equipment Manufacturers (NEMs).
Power-Saving Product Highlights
- Low-Power QSFP28 ZR4 100G
Delivers up to 80km reach with power consumption under 5W, ideal for long-haul, low-power deployments. Supports port power limits found in NEM switches.
- QSFP28 100G SR4
Consumes less than 2W, making it a perfect fit for energy-conscious data centers and service providers.
With our extensive inventory and fast shipping, customers avoid long lead times and stay ahead of demand. As data centers continue to expand, AddOn gives operators the products to solve their network challenges.
Optimize Your Energy Strategy
Power efficiency in data centers is no longer an option, it’s essential. AddOn offers the low-power optics you need to meet these demands, whilst becoming cost-effective, and future-ready.
Take the next step: Contact us today to learn more or request a complimentary evaluation kit.