UII UPDATE 473 | MARCH 2026
Intelligence Update

IT power thresholds can incentivize server inefficiency

3 Mar 2026
4 min read

IT power utilization is the ratio of the average annual power used by IT equipment to its potential maximum power demand. It is increasingly being considered for data center-related regulations, including draft French tax regulations (see France sets strict PUE and WUE thresholds as tax incentive) and EU Lot 9 eco-design requirements for servers and data storage products sold in the EU.

Increasing IT power utilization can help improve data center efficiency in several ways:

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