Reducing Data Center Energy Waste

Optimizing Data Center Energy

Introduction

From legacy server rooms to cloud platforms to AI supercomputing, the world relies on data centers more than ever. This growing demand drives higher energy use each year. In fact, McKinsey projects they will draw 11.7% of all US power consumption by 2030 – up tenfold from 2020.

Innovation continues to reshape how organizations store and process data, but most conversations around energy efficiency still focus on cooling systems and renewable power. Less attention is paid to the components that control how electricity moves through the rack.

Magnetics waste a disproportionate amount of energy as heat if not tailored to the task. Across the complex stages of power conversion, thousands of components handle up to 80% of all losses. Christopher Riccardella, the former Director of Application Engineering at Standex Edge, explains: “Designing a magnetic well can be the difference between 0.5 – 1% loss. If you scale that up, you could save an entire data center hundreds of thousands of kilowatts of energy at any given moment.”

A well-designed transformer boosts efficiency by providing the lowest possible loss while utilizing the smallest possible space. Riccardella continues: “Between 0.25% and 0.75% of a circuit’s overall power loss can be determined by the design choices of the primary isolation magnetic.” Magnetics also shape downstream behavior such as electromagnetic interference (EMI). “If you can’t pass EMI-EMC testing, you can’t put your product in the market,” Riccardella adds. It’s time the industry leaned on custom magnetics to unlock hidden efficiencies.

The untapped efficiency gap

When space is not limited, there is little efficiency difference between planar and wire-wound magnetics. In real data centers, however, height and volume constraints shape every design decision. These restrictions drive demand for higher power density solutions. “You’re never going to go to [an electronics supplier] and find an off-the-shelf transformer that can do the job,” Riccardella says, which makes custom design essential.

Smaller magnetics do more than save space. “The closer components sit together, the more efficient your power supply can be. The more efficient they are, the less EMI problems,” Riccardella adds. Even in converters already operating at 96-98% efficiency, magnetics account for 25-50% of the remaining losses. Looking at a 3kW converter, saving just 0.1% efficiency equals 3 watts. At the data center scale, this reaches gigawatts. When you multiply this by hours of operation and cost of energy, the savings can be huge.

Managing parasitic concerns within magnetic components also improves surrounding circuitry. Lower heat, noise, and ringing allow faster switching and less stress on adjacent field effect transistors. This can support longer lifespans and more stable operation.

In advanced power electronics, designers should treat parasitics as part of the circuit. Riccardella explains: “To prevent the elements needed for resonance in complicated topologies from inducing losses into the windings of the transformer, steps must be taken to integrate parasitic elements while minimizing thermal loss.” By controlling these parameters within tight tolerances, systems run cooler, cleaner, and more efficiently.

Driving Data Center evolution

As data storage architectures evolve, OEMs must adapt quickly. At Standex Edge, we know early innovation between our component specialists and our clients’ system designers shortens development cycles and helps avoid late-stage redesigns. Effective design also means considering downstream effects on the entire system. Material availability, sourcing constraints, and lifetime operation costs all shape real-world performance. Rather than evaluating components only at unit price, we work with OEMs to assess how design decisions affect total cost of ownership over the lifespan of a data center. “Working with so many industries gives us a valuable perspective,” Riccardella explains. “Instead of seeing three of four power supply designs a year, we see thousands. We see what’s state-of-the-art, what everybody’s doing. We’re the interconnecting point to help connect the dots between typically disassociated people.”

One of the biggest shifts is the rise in switching frequencies towards the megahertz range. As this continues, material choice and construction methods become essential. Powder alloys, alternative core geometries, and emerging semiconductor materials such as gallium nitride will mean devices can work at higher voltages, temperatures, and frequencies with lower power loss.

Coordinating suppliers worldwide for specialized applications brings its own challenges. Aligning design, sourcing, and production is critical to meeting time-to-market expectations in fast-moving sectors such as cloud infrastructure. Standex Edge’s role increasingly sits at this intersection.

Every OEM should be considering how to balance design priorities such as efficiency, reliability, and cost. No single parameter can be optimized in isolation. Riccardella explains: “[Standex Edge’s] goal is to find the sweet spot, from not only our components, but to guide our partners to make those best choices.” This ensures the best architectural choices, with every micro-component pushing the boundaries of what’s possible in data center performance.

The impact of AI

AI adoption is putting demand on data centers. According to the International Energy Agency, it’s driving up electricity use in accelerated servers by 30% per year. This growth increases pressure on power-conversion efficiency and on architecture tuned for AI processing.

At the same time, AI will likely play an increasing role in transformer design. As in other markets, there are opportunities for AI to streamline. “Engineering expertise won’t be replaced, but we want AI to help find our customers a faster, better, and higher fidelity solution, which is ultimately our end goal.”

These tools can shorten design cycles. Riccardella explains: “[Standex Edge is] actively deploying R&D, commercial and engineering resources to figure out how to grow alongside this market and develop differentiated products.” However, the experience and judgment of our specialists remain essential to ensure designs meet safety, reliability, and production requirements. This approach will help Standex Edge stay ahead of changing data center demands.