Simon Jesenko, Co-CEO, Iceotope, offers a fresh perspective on the roles of C-levels in driving smarter TCO models to ensure data centre infrastructure is both technically proficient and financially strategic.
We are at a point where climate change and Artificial Intelligence (AI) are converging to redefine how we approach new technologies, environmental sustainability and resource management. Businesses find themselves at an inflection point that requires bold, forward-thinking solutions. Nowhere is this more obvious than in the data centre industry.
Data centres are central to AI’s growth and are evolving rapidly. The growing demand for compute power is requiring stakeholders across the business to rethink traditional approaches. Where once decisions were made within the facilities department, today’s landscape calls for a more integrated approach that engages the entire C-suite. Collaboration among departments – facilities, IT and executive leadership – is needed to ensure company-wide strategies align with long-term business goals and growth objectives.
The evolving role of the C-Suite in data centre strategy
The impact of AI and sustainability initiatives extends far beyond IT and facilities, influencing strategic planning, capital allocation and corporate responsibility. Active engagement from the entire C-suite is therefore crucial in driving data centre operations toward more innovative and efficient solutions in terms of the bottom line as well the impact on the environment.
Each executive plays a distinct role in this process. The CFO ensures investments align with the company’s financial goals, while the CEO provides strategic oversight, keeping data centre decisions in line with the company’s long-term objectives. The CTO focuses on integrating new technologies with operational needs, and the Chief Sustainability Officer (CSO) ensures environmental targets are met. This collaborative approach allows for holistic, strategic decision-making.
Why is this important now? Air-cooled data centres, though once standard, are now becoming less viable as a cooling solution as compute demands from AI grow and sustainability becomes a priority across organisations. New technologies, like liquid cooling, can offer more efficient solutions that directly affect profitability and help achieve sustainability targets. Liquid cooling reduces energy consumption, water use and operational costs while simplifying data centre design.
A 4% performance improvement from liquid cooling can deliver tangible benefits across several business functions.
In the data centre, this boost enhances processing speeds, improves response times and increases capacity, allowing for more workloads without additional hardware – delaying the need for costly capacity expansions. Financially, energy cost reductions lead to better operational efficiency and improved return on investment through more effective use of existing infrastructure.
Environmentally, this 4% efficiency gain translates into reduced carbon emissions, supporting sustainability goals and regulatory compliance. It also aligns with broader corporate initiatives to minimise environmental impact while driving growth.
These insights underscore the need for cross-department collaboration within the C-suite. By making integrated decisions, executives can achieve greater impact across the entire business.
Innovation requires leadership from the top
One of the most significant barriers to adopting new technologies is the tendency toward incrementalism – a cautious approach to change that focuses on small, gradual improvements. While this may seem prudent, it often stifles innovation and limits long-term growth. The C-suite must challenge this mindset and lead the charge for bold, transformative solutions.
Executives, particularly the CFO and CTO, should work together to drive a holistic understanding of the total cost of ownership (TCO) when evaluating data centre investments. TCO models are often narrowly focused and fail to account for the broader financial and operational impacts of new technologies. A comprehensive TCO perspective allows the company to fully assess the costs and benefits of adopting innovative solutions, positioning the business for long-term success.
Beyond cooling technology, there are other aspects of data centre operations that demand executive attention. Data centres are major energy consumers, and evaluating energy costs and potential savings from energy-efficient technologies is vital. Additionally, exploring renewable energy sources can further reduce operating expenses while enhancing the company’s sustainability credentials. On top of energy, data centres use vast amounts of water for cooling significantly impacting local water resources, therefore evaluating and selecting technologies that decrease the impact of water consumption is vital.
As businesses grow, so do their data processing needs. AI is rapidly pushing the limits of current technology, and future-proofing data centre infrastructure is essential for scalability. Investing in the right technology today not only prepares the company for the demands of the future but also enhances operational efficiency, security and stability. These strategic decisions set the foundation for long-term success, positioning the company to respond to future challenges with agility.
Balancing immediate and long-term priorities
The key to an effective data centre strategy lies in balancing short-term operational needs with long-term growth goals. While the immediate challenge of ensuring operational continuity must be addressed, executives must also consider the long-term ROI of technology investments. Decisions made today will have lasting effects over the next 15-20 years, necessitating a forward-looking approach.
The C-suite’s role is to ensure that investments made today support both immediate and future business needs. Incremental solutions may offer temporary relief, but they are not sufficient to sustain the business over the long term. By encouraging a broader view of the company’s challenges and opportunities, the executive team can steer the company toward more innovative, sustainable and cost-effective solutions.
Shaping the future
The future of data centre operations depends on the active involvement of the entire C-suite. Each executive brings a unique perspective that, when combined, ensures that the company’s approach to data centres is both financially sound and strategically forward-thinking.
The CFO’s focus on cost structures, the CTO’s expertise in technology selection, the CEO’s long-term vision and the CSO’s commitment to sustainability all contribute to building a resilient, efficient, and scalable data centre infrastructure. Together, the C-suite can ensure that the company remains competitive in an evolving technological landscape while driving innovation and sustainability.
By embracing bold solutions and aligning on a shared vision for the future, the C-suite can guide the company through today’s challenges and position it for long-term success.
