San Francisco, CA (The Hosting News) According to the company, this not only reduced energy costs at a critical time for customers, but has also resulted in capacity at 365 Main’s flagship San Francisco facility for the first time since 2006.

The goal of PG and E’s High Tech Energy Efficiency Program is to reduce energy consumption in data centers and throughout IT infrastructure. To encourage the implementation of such projects, PG and E pays incentives for energy-efficient equipment and initiatives, including using virtualization technology, which allows customers to run multiple virtualized server instances on a single physical server, increasing processing capacity and reducing overall energy use.

For virtualization/consolidation projects, PG and E pays incentives based on the annual accrued energy savings at the rate of 8 cents per kilowatt-hour. Based on typical power use of servers, incentives are typically on the order of $200 per server removed, up to a maximum of 50 percent of the project implementation cost.

PG and E determines the incentive payment for each participant based on the amount of energy saved, predicted through a calculation model, and reserves the right to inspect equipment both before and after the project is implemented.

Mark Bramfitt, principal program manager, customer energy efficiency at PG and E noted, ”As an industry leader in energy efficiency, PG and E helps our customers implement energy-saving technology that makes good sense – to the environment and to their bottom line. We are excited that 365 Main customers have chosen to participate in the virtualization program and look forward to seeing more data center customers join in 2009.”
Some of 365 Main’s San Francisco customers participating in the virtualization program have reduced their energy consumption by up to 20 percent, freeing up capacity that is available immediately for new or existing customers. Capacity in San Francisco has also been made available as two high-growth customers graduated to the company’s Oakland facility to access larger amounts of space and power not available in the San Francisco data center. Several other customers are expected to participate in the virtualization program in 2009.

The newly available capacity is much needed in the San Francisco Bay Area, which data center industry analyst firm Tier 1 Research recently named the top data center market in the United States. In its yearly supply/demand report published in Q4 2008, Tier 1 found data centers in the region were on average 70 percent full, with utilization expected to reach 95 percent in 2012. The firm predicted that demand in the region will grow at 15-18 percent per year over the next four years, while supply over the same period will only grow at 6-9 percent annually.

As a result of the lopsided supply/demand metrics, companies are moving quickly to secure available capacity. According to the report, the San Francisco Bay Area is attractive because of the availability of power, ample optical fiber routing, regional fiber exchange points and proximity to the region’s many businesses.

Chris Dolan, President and CEO of 365 Main explained, ”We’re pleased our customers can benefit from the innovative programs PG and E has developed to curb energy use. The available capacity will directly serve existing or new customers looking to expand or move into 365 Main’s founding facility.”

Mr. Dolan said 365 Main has leased over 95 percent of available capacity across its five data center portfolio including over 4 MW leased in Q4 2008. The company is currently planning for expansion in new and existing regions.

Since PG and E launched the program in 2006, more than 150 Northern California companies have filed applications for server virtualization/consolidation projects. To qualify for the PG and E incentives, 365 Main’s customers were required to apply to the program before beginning the project, and making their installation available for pre- and post-inspections to ensure removal of equipment.

365 Main Inc. develops and operates data centers, developed and certified to compliance requirements, including SAS70, and feature 24/7/365 power, cooling, connectivity and security capabilities to ensure mission-critical operations and business continuity for tenants. Hundreds of hosting, telecommunication and Fortune 1000 enterprises utilize 365 Main’s privately held services, based in San Francisco, California.

For more information about 365 Main Inc., please visit:

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