Energy Management in the AI Era: Cisco's Digital Transformation Advantage

In a world increasingly driven by Artificial Intelligence (AI), cloud, edge computing, and interconnected devices, the demand for scalable and efficient digital infrastructure has never been greater. The pace of adoption for generative AI has eclipsed both personal computers and the Internet – a 97.5% difference in adoption rate over two years  (source: The Rapid Adoption of Generative AI, 2024). The impact of AI and crypto on data center energy consumption is set to more than double by 2030 according to the International Energy Agency (source: IEA, 2025). This rapid expansion brings a critical challenge – managing energy intelligently to support growth, maximize efficiency, and minimize waste.

At its core, energy management is about measuring, monitoring, and controlling energy consumption to unlock cost savings, improve operational efficiency, and reduce environmental impact. With over 40 years of leadership in secure networking, Cisco is once again setting the stage for innovation—this time by reimagining energy management as a strategic enabler for the modern era. Cisco’s vision is clear: to be the market leader with unmatched visibility, embedded intelligence in hardware and AI-driven smart policies and automation.

Cisco’s Energy Management Strategy

Cisco has a comprehensive approach to energy management, structured into three deliverables:

1. Visibility & Reporting: Building a strong foundation with actionable data
2. Insights & Analytics: Leveraging AI to provide real-time optimization and recommendations
3. Control & Automation: Empowering customers to manage energy consumption dynamically without compromising performance or Service-Level Agreements (SLAs)

Visibility & Reporting: Building a strong foundation with actionable data

• *New* Power Measurement methodology: While current standards like ATIS TEER, ETSI EN 303 470 and others provide valuable guidelines, Cisco is integrating over four decades of networking expertise with these standards to provide a more comprehensive and accurate measurement approach to aid network planning and business operations.
• Five standardized energy metrics: Cisco is enabling customers to establish an energy management baseline with visibility and reporting across five standardized metrics: Energy Consumption (kWh), Total GHG Emissions (metric tonnes of CO₂e), Carbon Intensity (grams of CO₂e per kWh), Energy Mix (% from low carbon energy sources) and Energy Cost (USD). Customers can access this actionable data through Cisco platforms and build a unified view leveraging Splunk to identify anomalies, cut costs, and plan for a more efficient digital future.  Available today on Cisco Nexus Dashboard, Control Hub, SDWAN, *New* on Meraki Dashboard and Catalyst Center.
• * New * Updated Product Data Sheets: Clear, consistent sustainability profiles to simplify purchasing decisions for customers and highlight Cisco’s focus on energy optimization and sustainability through the product’s lifecycle.
  • Updated Sustainability Profiles will include a link to information on product carbon footprint and life cycle assessment which estimate the overall environmental impact of a product where available (visit our website to learn more).
  • Ecolabel certifications like ENERGY STAR ® will be included to help customers drive return on investment decisions, support compliance/ regulatory needs, LEED certification and other building frameworks. *New* Cisco is proud to announce that we are first in the industry to have Enterprise Routers ENERGY STAR certified in the Large Networking Equipment category (LNE). Data Center Switches will follow and be certified by the end of June 2025.
• *New* ROI / Total Cost of Ownership (TCO) Calculator is being prototyped for release to Partners / Sellers to generate ROI/TCO reports that demonstrate Cisco’s advantage with our ongoing investments across hardware, software, energy management, and ecosystem solutions.

Insights & Analytics: Leveraging AI to provide real-time optimization and recommendations

• Real-time monitoring can help deliver actionable insights to reduce energy usage and costs. These will include alerts for unusual power spikes, identification of underutilized (“zombie”) servers, and intelligent energy-saving recommendations—such as auto-shutdown of power supplies, disabling idle small form-factor pluggable (SFP) ports, and optimizing control of Power over Ethernet (PoE) devices (lighting, shades, cameras) across campus networks. In data centers, recommendations extend to smart Power Distribution Units (PDUs), server consolidation, and maximizing use of clean energy to power cooling systems during peak demand.
• With predictive analytics, AI, and scenario planning, we can empower network administrators to take precise, data-driven actions tailored to their unique energy needs.

Control & Automation: Empowering customers to manage energy consumption dynamically without compromising performance or SLAs

• *New* Smart power framework for intelligent power management: Cisco is pioneering efforts to bring together power monitoring, energy policy and partner ecosystem interoperability to offer an extensible, scalable and simple solution for customers. Through this framework, there will be consistent modes across Cisco devices, including out-of-the-box shipping mode, performance mode, and low power mode to help automate workflows for customers looking to make energy performance tradeoffs within their networks.

The North Star: Simplified, Unified Outcomes

Cisco’s energy management strategy goes beyond a product roadmap – it’s a commitment to drive innovation and sustainability. With enhanced power measurement capabilities, actionable insights, and integrated controls, Cisco is pioneering the way for a more sustainable and intelligent digital future. This vision empowers customers to reduce operational and capital expenses while helping them achieve their business goals.

“At Logicalis, we are committed to empowering our customers to lead the charge in sustainable IT transformation.  Together, leveraging Energy Management solution and tools including sustainability estimators and carbon footprint data, we can now provide actionable insights and tools enabling our customers to make informed decisions that drive energy efficiency, cost savings and carbon reduction. With our global expertise and groundbreaking technologies, we’re not just offering solutions; we’re igniting a movement towards a greener, more sustainable future for industries worldwide.”

~ Robert Bailkoski, CEO of Logicalis

“Electricity Maps is the leading global provider of real-time electricity data. Cisco offers industry-leading energy management through intelligent software, efficient hardware and insights throughout its product range, powered by global real-time data about the carbon emissions of electricity. We are proud to partner with Cisco to continue pushing the boundaries for carbon aware technology and next generation energy management.”

~ Olivier Corradi, Founder, CEO of Electricity Maps

“You can’t fix a problem you can’t see. Establishing a credible baseline is the foundation to making any progress. Cisco’s Energy Management strategy empowers customers to manage energy consumption by providing visibility, insights and automation. This trend continues to grow more urgent with the AI revolution.”

~ Denise Lee, Vice President, Cisco Engineering Sustainability Office

Watch this video www.cisco.com/go/energymanagement, visit updated product data sheets and contact your sales representative to learn more.

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