# What’s the Potential ROI of Investing into Green Data Centers? - Link: https://greenlivingguy.com/2020/08/whats-the-potential-roi-of-investing-into-green-data-centers/ - Published: 2020-08-17T03:34:00-04:00 - Author: greenlivingguy A record-breaking heatwave in Siberia would have been almost impossible without human-caused climate change. I mean that’s what a study has found. The Russian region’s temperatures were more than 5C above average. All between January and June of this year. Temperatures exceeded 38C in the Russian town of Verkhoyansk. That’s on 20 June. For that’s the highest temperature ever recorded. I mean north of the Arctic circle. #### The Arctic is believed to be warming twice as fast as the global average. An international team of climate scientists, led by the UK Met Office. For it found the record average temperatures were to happen. That’s less than once every 80,000 years without human-induced climate change. ![Modern data center aisle with energy-efficient server racks and a technician using a tablet to inspect systems.](https://i0.wp.com/greenlivingguy.com/wp-content/uploads/ 2011/03/95827BFA-0BEF-4F26-98B0-0E118F7C41C4.png?resize=400%2C267&quality=50&ssl =1) Upgrading data centers with efficient technology helps New York companies cut energy use and reduce costs. This data is essential in understanding what is going on to the environment on this Earth. #### The Potential Cost of Falling Behind on Data Analytics I mean given that executives want to see detailed projections before handing over a blank check. All for analytics tech and training. Because many are hesitant to invest money. Especially in anything they can’t quantify ahead of time. ![](https://i0.wp.com/greenlivingguy.com/wp-content/uploads/2020/08/pexels-photo- 1181354.jpg?resize=736%2C491&quality=52&ssl=1) However, many leaders underestimate the cost of not investing in analytics. Yes, there’ll be lower initial spend by sticking with legacy tech or providing analytics capabilities only to power users rather than to the entire workforce. However, the value of these tools will also be much lower as they severely limit outcomes. #### The ROI on Advanced Data Analytics In 2018, a study was conducted by the research firm Vanson Bourne. It found that organizations were using only about half of the data they create. They also store this data. Additionally, data was driving slightly less than half of decisions throughout the org. The same report found companies that were planning on [investing](https://greenlivingguy.com/2025/08/nintendo-reports-environmental-strategy-metrics/) $1.7 million on average into their data strategy over the next five years. These companies will expect to see their revenue increase by $5.2 million as a result. That’s [a potential return of over 500 percent](https://internetofbusiness.com/businesses-missing-out-on-5-2m-in-revenue-through-untapped-data/'). ![](https://i0.wp.com/greenlivingguy.com/wp-content/uploads/2020/08/pexels-photo- 3331814.jpg?resize=420%2C280&quality=52&ssl=1) The takeaway? It’s cheaper up front to avoid investing in [advanced analytics](https://www.thoughtspot.com/spotiq/artificial-intelligence-advanced-analytics) with artificial intelligence capabilities in terms of IT budget. But it also hamstrings how much value a firm can derive from data-driven decision-making. The price tags of specific pain points are important in these ROI calculations. Analytics can help solve issues like monthly customer churn, percentage of machine downtime, and inventory dead stock. The cost of various inefficiencies can help businesses understand how much they have to lose through inaction.  #### Digital Transformation: Is Your Company Leading or Lagging? According [to research from Harvard Business School](https://www.cio.com/article/3122806/digital-laggards-must-harness-data-or-get-left-behind.html), companies are becoming increasingly divided. They are categorized as digital leaders, which are firms ranking in the top quarter of businesses evaluated. They are also categorized as digital laggards, which are firms ranking in the bottom quarter in terms of digital transformation. The report revealed:- Leaders saw a higher gross margin (55 percent vs. 37 percent). Leaders beat out laggards in terms of average earnings (16 percent vs. 11 percent)- Leaders reported better average net income (11 percent to 7 percent) Before you attribute these [differences](https://greenlivingguy.com/2020/02/10-energy-saving-technologies-for-homes-you-should-consider/) to budget, remember something important. There was no significant difference between leaders and laggards in that department. The difference came from the culture and practices surrounding technology. This includes data-driven decision-making. It is based upon a solidly executed data analytics strategy. The ability to harness current, relevant data insights is a game-changer. It is capable of affecting profitability and other key areas of performance. This study demonstrated that leaders are much more than laggards to capitalize on real-time data analytics. They do this to improve the customer experience. They also aim to reduce churn. #### Realizing the Full Cost of Failing to Compete on Analytics Another basic risk of falling behind on data analytics is that your competitors, well, won’t. Almost nine in 10 companies are feeling “greater urgency” to invest in AI and analytics. Ninety-two percent [are accelerating the pace of their investments](https://hbr.org/2019/02/companies-are-failing-in-their-efforts-to-become-data-driven) in this arena — according to research from Harvard Business Review. In other words, it’s safe to assume your competitors are doing so. Yes, harnessing advanced analytics does need an investment. But, there’s also a cost to falling behind. This is especially true in highly competitive sectors full of companies trying to gain an edge. There are a few ways to consider this cost. One way is in terms of missed revenue. Another way is in terms of missed opportunities to solve costly pain points. There’s still lots of opportunity. Companies are figuring out which technology to deploy and how. They also need to foster a genuinely data-driven culture around these investments. But one thing is clear: Falling behind limits the business value. Companies can ever derive from their data analytics strategy. This is true in terms of data-driven decision-making.