On August 2, 2007 the Environmental Protection Agency (EPA) issued its "Report to Congress on Server and Data Center Energy Efficiency". The purpose of the report was to provide a review on current trends in energy use and energy costs of data centers and servers in the U.S., and to outline existing and emerging opportunities for improved energy efficiency. To gain a deeper understanding on the findings and implications of this report, we interviewed the Administrator of the EPA, Stephen L. Johnson in his Washington, D.C. office on Feb 8, 2008. Administrator Johnson is a cabinet rank member in President George W. Bush's administration and reports directly to the President. The Datacenter Report Ken McGee: You cite in the early part of the report that data center and server utilization represents 1.5 percent of all electrical utilization in America. And you cite the federal government's overall usage is 1/10 of that. With such small numbers, why did servers and data centers stick out as something for the EPA to write about and report on, versus something much bigger than 1.5 percent? Johnson: When you take the rate of growth and couple that with a lot of other sectors that are also drawing upon the needed energy, while wanting to encourage economic growth but in a sustainable, environmentally friendly way, it became obvious to us there's a great opportunity for us to help here. McGee: Many of our clients believe that the inefficient way in which IT products have been designed and manufactured over the years is a key contributing factor to the power supply shortage that many have today. Given different power demand scenarios that appear very early in your report, you're talking about the need for the equivalent of ten new power plants' worth of electrical power by 2011. But your report also identifies how improved operations, best practices and state-of-the-art technology projections and scenarios will yield fabulous savings. In fact, you indicated, quote, "we estimate that in the United States we have the opportunity to save up to $4 billion a year." Do you genuinely believe such massive savings are achievable by 2011? Johnson: We do. We do, and there are a number of reasons why I say that so affirmatively. One reason is because of the reality of the advancements of technology that we see around us every day, particularly in the IT and communications arena. Second is that it's not just the EPA, it's not just the federal government. In fact, two days ago I had the IT CEOs here, from Michael Dell to others, sitting around this very table saying, "This is very exciting. We are investing in green technology, not only from a laptop perspective or a tabletop perspective, but also looking at what we can do to improve the servers, improve these centralized data storage areas." McGee: How did they respond? Johnson: Well in fact we agreed that there's not only a need but an opportunity, and that certainly from their perspective in looking at their business plans, a real, real necessity [for more investment in green technology]. McGee: The EPA report was relatively silent on the existence of pockets of inadequate electrical power around the country. Is that a finding of the agency, but an issue that fell outside the scope the report, or to what extent is the agency familiar with this electrical power shortage issue? Johnson: No, we generally leave that issue up to the Department of Energy who oversees our nation's energy grid. Again, from our perspective, we're well aware of some of the needs and the shortages of electricity demand, [but we must meet that demand] in an environmentally protective way. McGee: But is this nation going to run out of electrical capacity in certain geographic areas by 2011 or beyond? Johnson: Well you certainly raise a broader issue that's of concern — concern to the President, concern to all of us — and that is, as economies grow, so does the need for power. And that while we need to take advantage both in the short term and the long term of anything at all that we can do to improve and make our hardware or data center servers or whatever more efficient, we also are going to need to address the power issue. There isn't one magic silver bullet. And in fact certainly from my perspective, there needs to be a variety of tools in our toolbox to address [the power demand issue]. And so, we must look to nuclear power — it is a clean technology. It is one that as you look across the globe, there are many countries who are investing in nuclear. We have a lot of new, safe and clean technology solutions with nuclear power, so we need to be investing in nuclear. Of course there's wind and solar in certain parts of our country. We have yet to reap the benefits of [those energy generating sources]. Coal is also one of the nation's most abundant energy sources, and whether the number is 200 or 250 years' supply, we need to invest in clean coal technologies. And so as we look at this wide array of technology we need all those sources of electrical generation to meet the growing demand. At the same time we need to also concentrate and take every opportunity we can to reduce our energy need and footprint, and certainly in the use of more efficient [IT products] — whether it be a laptop or a server — that's what we need to be doing. Regulations and Energy Star McGee: The Energy Policy Act of 2005 and Presidential Executive order 13-423 (January 24, 2007) require that federal agencies purchase products that meet Energy Star and other environmentally responsible standards. Do you see a day within the next five years where those kinds of mandates will spread to the private sector? Johnson: I don't see the federal government writing a regulation to mandate that for the private sector, for a variety of reasons. The simplest one is, as businesses have looked at our Energy Star products they do find there's an environmental benefit. But most important or equally important to businesses is it helps them in the bottom line. McGee: But just like catalytic converters on cars are for the good of the nation, don't you see a day in the future where only energy-efficient devices will be allowed to enter the market? Johnson: Again, from my perspective, let the market drive it. And certainly from my perspective and certainly the administration perspective, that's a much more preferable approach of addressing things. McGee: Energy Star 4 recently replaced version 3. How far off on the horizon is Energy Star 5? Johnson: The fundamental premise of EPA and the Department of Energy is that Energy Star should not be a stagnant measurement tool, [but that we should always look towards raising] the bar. And so that is the sort of continuous process that is built into the Energy Star program. And again, we're looking at what's the next generation of more efficient products. McGee: And another aspect of that is, do you see a day within five or ten years when certain types of manufacturing will just simply not be permitted to be manufactured and/or bought and brought into this country? Johnson: Again, from a regulatory perspective are we going to write such a regulation? I don't envision that. Congress may entertain that, but that's certainly up to them. But again, my experience, whether it's light bulbs or Energy Star laptops or Energy Star refrigerators, is that people (whether you are an individual, a business or the government), as they go to purchase, are now looking for Energy Star status. And they're looking at it from a savings viewpoint. They're also looking at it from an environmental viewpoint because they know that it's going to reduce energy usage and help in reducing greenhouse gas emissions. It's a win-win-win that everyone likes. And I guess I should add that what is also very exciting is to see other countries, whether it be Canada to the north or other countries around the globe — the European Union for example — who have seen and now witness the strength of the Energy Star program and are now either adopting it as it is in the United States, or modifying it slightly for their country needs. And so that's very exciting. It's exciting to see the American technology and market-based system moving across the globe. It's also exciting to see it from an environmental standpoint because we are seeing that greater environmental benefit. Getting the Private Sector Involved McGee: In the report it mentions something called a "CEO Challenge," which would challenge private sector CEOs to conduct energy efficiency assessments in their companies. Can you see a day similar to Sarbanes-Oxley, where that would become a mandate that required an assessment to be done and reported upon on an annual basis? Johnson: I don't see a mandate in the future. From my conversations with the IT CEOs — or for that matter, the conversations that I have had over my past 2-1/2 years with CEOs, whether they be of energy-producing corporations or other goods and services — they are anxious to adopt products and services that help the environment and the economic bottom line. And let me just take it a step further. It's not just what we traditionally think of being a server or a laptop that's drawing power from the central grid. People are really beginning to look at [these environmental issues] from a real holistic perspective. And so as I have talked to the CEOs, and while we focus on what seems to be the central issue of power needs, improved efficiency of our servers or to make our centralized storage units more efficient — that's just a piece of the puzzle. But also there's some great opportunities as you look out into the periphery of things. McGee: Would you see yourself in a position to coax or recommend CEOs to issue their own version of Executive Order 13-423? Is there merit in that idea? Johnson: I think my message to CEOs is — here's a wonderful opportunity and I would encourage you to take advantage of it and to take part. And we have a number of official EPA programs to help those efforts, whether it is Energy Star in commercial buildings, or whether it is our Green Buildings initiative, whether it be our Climate Leaders program, whether it be our Performance Partnership programs. We have a number of programs that we have in place to really help, whether you are a major company, major manufacturer, or if you're a small business. And we just see great opportunities in encouraging having a conference talking about servers and energy use. McGee: If you were standing in front of the nation's microphones and had the attention of everybody who mattered in this particular topic for three minutes, what would you advise them to do? Johnson: Well I would first say, attention, attention. Everybody please pay attention. First, you need to monitor and actually benchmark what you, your facility, your company, your operation is doing. Second, there are a number of opportunities for a collaborative effort within the federal government, within the IT community, within — and you can fill in the blank. Domestically, internationally. And so let's invest in that collaborative effort to make a difference. And three, we need to continue to invest in and support the development of new [energy saving] technologies and to adopt them. And so you have to pay attention. As the nation is greening and as we continue to push our economic growth, we have a great opportunity to improve the environment and the economy at the same time. McGee: In our final moments together are there any other areas that you wish to discuss? Johnson: Well we can save lengthy explanations for another time, but I'll give you a teaser. As administrator there are a few principal priority areas for me. The first is clean and affordable energy. And of course our conversation today fits right into why it is so important that EPA invest and help in that arena. Second is that we also have a unique challenge when it comes to a sustainable and secure water supply. EPA plays a unique role in Homeland Security and we have responsibility for water for our nation. Finally, EPA is now 36+ years old. Eighty percent of our senior executives are eligible for retirement in the next three to five years. And so a priority for me, and whoever ends up being the next administrator, is to [work towards building] a stronger EPA. We have to invest and make sure that we've got the kind of talent and senior people to lead the nation's premier Environmental Protection agency. McGee: Mr. Administrator, thank you very much for your comments and your time.