Data center earns record rebate

A Bay Area data storage and management company says it snagged the biggest new construction incentive ever awarded by Pacific Gas and Electric (NYSE: PCG) in December.

Sunnyvale, Calif.-based NetApp (Nasdaq: NTAP) received a rebate of more than $1.4 million for the design of a new engineering data center and for energy saving measures to provide power and cooling for the facility.

Among NetApp’s facility upgrades were energy-efficient transformers, a variable primary chiller plant, outside air economizers—which distribute outside air for cooling—and flywheel uninterruptible power systems. In addition to the rebate, PG&E estimates that the measures will cut about 11 million kilowatt-hours per year, saving NetApp about $1.2 million per year and eliminating about 3,400 tons of carbon emissions annually.

Data centers and servers account for about 1.5 percent of U.S. electricity consumption, though that number is climbing rapidly, according to the U.S. Environmental Protection Agency. About half of data centers’ energy use goes toward powering and cooling infrastructure for IT equipment.

NetApp earned the rebate through PG&E’s Non-Residential New Construction program, part of a statewide program called Savings by Design. Funded by utility customers and administered by the state’s four investor-owned utilities, the program aims to promote energy efficient design and construction among commercial, high tech, industrial and agricultural customers. Eligible projects can receive design assistance and training, as well as financial incentives for owners and design teams.