Green Data Cabinets Feature Editorial

Data Center Technology Startup Raises Over $11 Million in VC Funds

By Erin Harrison, Executive Editor, Strategic Initiatives

A Silicon Valley startup that claims to have the technology that can cut energy consumption in half at data centers has raised an additional $11.25 million in venture capital.

 

Santa Clara, Calif.-based Power Assure s announced on Wednesday that additional funding has come in from Good Energies, Point Judith Capital and Draper Fisher Jurvetson. In addition, Power Assure received a $5 million grant from the Department of Energy providing the company with $18.75 million in total capital.

 

Company officials said the new injection of funds will be used to expand the company's sales and go-to-market initiatives for its optimization solutions, currently in production at large enterprise and government data centers.

 

With skyrocketing costs to build-out new data centers, Power Assure officials said that its technology is sought after to extend the longevity of their existing data centers while maintaining critical customer service levels.

 

The company also announced the addition of Bernard Brenninkmeijer from Good Energies and Zaid Ashai with Point Judith Capital as new members of its board of directors.

 

'The cost to build out a new data center today is averaging $100 million,' said Brenninkmeijer, investment director with Good Energies. 'As a result, data center operators are seeking solutions like Power Assure's to extend the life spans of their existing data centers.'

 

According to company officials, Power Assure lowers data center energy costs by balancing the supply of servers in a data center in order to meet actual customer demand. When user demand drops, Power Assure automatically reduces the number of servers in use.

 

Power Assure partners include Dell, IBM, Raritan (News - Alert) and VMware. For more information, visit www.powerassure.com.

Erin Harrison is a senior editor with TMCnet, primarily covering telecom expense management, politics and technology and Web 2.0. She serves as senior editor for TMC's (News - Alert) print publications, including 'Internet Telephony', 'Customer Interaction Solutions', 'Unified Communications' and 'NGN' magazines. Erin also oversees production of TMCnet's weekly iPhone (News - Alert) e-Newsletter. To read more of Erin's articles, please visit her columnist page.

Edited by Erin Harrison