Measurement is the first step of energy management, which becomes even more critical as energy costs rise. A new chip by Teridian Semiconductor is aiming at not only at concerns towards growing enterprise data center energy demand, but also for residential applications.

Using technology they’ve honed through their utility smart meters, Teridian's chips could be key in managing IT energy costs. With annual costs for IT departments totaling over $4.5 billion in the U.S. in 2006 according to the EPA, there are ample savings to be made by reducing energy consumption.

The same 2006 EPA report also projected 2011 data center energy cost at more than $7.4 billion. However, companies could implement smart measures towards energy efficiency and adopt that would more than half the energy use, according to the EPA.

Teridian’s chip enables manufacturers to integrate smart energy measurement tools into data center equipment including power supplies, and communications equipment, as well as servers.

Through careful monitoring, companies can track specifically track problem areas in enterprise networks. Earlier this year, the company joined The Green Grid, a global consortium that works towards further energy efficiency in data centers.

Evaluating energy use in terms of equipment at the individual outlet level enables measurement of energy efficiency for homeowners. Teridian’s tiny system-on-a-chip may be incorporated into home automation products and appliances, enabling consumers to accurately measure the decreases in energy use that result from adding lighting or heating controls. Teridian also provides chips for use in smart meters.

David Gruetter, chief technology officer at Teridian, emphasizes that the first step towards efficiency is measurement, "In order for consumers or enterprises to learn how to be more energy efficient, they must first have the ability to track and analyze the power they are using."