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Why Energy Efficiency Is Becoming the Real Currency

As global power demand surges from AI and renewables reshape the grid, businesses must turn to energy efficiency to cut costs, reduce risk, and stay resilient.

Ava Montini

Oct 20, 2025

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For the first time in history, renewables have overtaken coal as the world’s largest source of electricity, making up 34.3% of global power generation in the first half of 2025. (The Guardian) Wind and solar are leading the charge, but the global energy landscape is entering a new and more complex era — one defined not just by how we produce power, but by how much we use.


And lately, usage is spiking.


The AI Boom Is Rewriting the Energy Equation

From data centers to chip foundries, the AI boom has ignited a new kind of industrial revolution. Major tech firms (such as Nvidia, Microsoft and others) are no longer waiting for the U.S. grid to catch up; they’re building their own power plants. In fact, one analysis finds that electricity costs in some regions near large AI data centre installations have surged up to 267% compared with five years ago. (Bloomberg)


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It’s not just abstract. In the U.S., wholesale electricity prices that would have been modest in 2020 are now far higher in data-centre hotspots. (Sandbox)


Why is this relevant?

  • These high-demand loads strain the grid, making the cost of electricity (and grid services) higher for everyone.

  • The more power-hungry the infrastructure becomes, the greater the business risk for enterprises that rely on stable, affordable energy.

  • As grid infrastructure lags behind demand, companies and organizations have to ask: What control do we have over our energy consumption?


When Power Becomes a Premium

Every kilowatt-hour now carries more weight, especially for companies operating large buildings or complex HVAC systems (sound familiar?). Efficiency isn’t just an ESG metric anymore; it’s a business imperative tied directly to cost-control and resilience.


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We’re now at a moment where:

  • Renewables are expanding fast, but demand is rising even faster in some tech/industrial sectors. For example, the International Energy Agency (IEA) projects that electricity demand from data centres will more than double by 2030 to around 945 TWh — “more than four times faster than the growth of total electricity consumption from all other sectors”. (IEA)

  • Some regions are seeing localized shortages, transmission constraints and higher wholesale power prices. In the U.S., wholesale electricity prices in several markets were up by 40-80 % in 2025 compared with 2024. (Construction Physics)

  • Organizations that wait for the “grid fix” may find themselves paying a premium (or exposed to reliability risk) in the meantime.


Put simply: If you can’t fully control your energy supply, you must control your energy use. Efficiency becomes the operational hedge.


The Efficiency Imperative

Here’s where the story turns from macro trends into actionable insight. The good news: The same technologies driving smarter AI are also enabling smarter buildings and systems. Intelligent filtration, automation, low-pressure HVAC systems, demand-response strategies — these are the tools to control the energy side of the business.


Here are three reasons why now is the time to focus on performance and efficiency:

  1. Cost Avoidance Becomes Value Creation

    With energy prices under pressure and demand growth uncertain, reducing consumption becomes a direct cost-mitigation strategy.– Efficiency improvements often pay back faster when baseline energy costs are rising.


  2. Grid Risk = Business Risk

    Relying solely on external supply (even if green) is a vulnerability; the more you rely on the grid, the more you’re exposed to spikes, shortages or regulatory premium pricing.– Being energy-efficient gives you more independence and control.


  3. Sustainability Meets Differentiation

    With the global pivot to renewables (for example, the projection that global renewable capacity additions between 2025-2030 will be ~4,600 GW) IEA — the organisations that get ahead now won’t just be “green” — they’ll be efficient green. That matters for brand, operations, risk profile.


When you think about building automation, indoor air quality and HVAC systems, you’re often dealing with the largest energy loads after lighting in a built environment. By focusing on filtration, optimization and smart control, you’re reducing both the peak load and the total energy used, which in the current climate is exactly the kind of strategic leverage organizations need.


  • Yes: the news about renewables overtaking coal is encouraging — that shift shows progress. But it also hides a key truth: demand is increasing fast, thanks in part to data, AI, buildings and more.

  • That means supply-side improvements alone aren’t enough. They must be matched by demand-side discipline (i.e., efficiency).

  • Organizations that act now to optimize their energy consumption will be better positioned, from cost, risk and sustainability standpoints, in the years ahead.


So whether you’re managing a campus, commercial building or industrial facility: don’t wait for the grid to “catch up.” Focus on what you control. Because in this new power era, efficiency is the real currency.



MORE INFORMATION

  • To explore available energy-efficient upgrades and funding programs supporting sustainable building projects, visit our Energy Grants page.


  • Learn how our Pro Filter's are helping organizations reduce energy use and operating costs while improving air quality across their facilities.

When More Ventilation Isn’t Always Better: The Emerging Case for Outside Air Reduction

  • Writer: Ava Montini
    Ava Montini
  • Sep 12
  • 6 min read

At the height of the COVID-19 pandemic, building operators were given one clear directive: get as much fresh outside air into the building as possible.


The reasoning was simple and sound: diluting indoor air with outside air reduced the concentration of airborne viruses and gave occupants a greater sense of safety. Schools cranked open dampers, office towers increased their minimum ventilation rates, and healthcare facilities invested heavily in boosting air exchanges.


That strategy worked in an emergency, but it also came at a cost. Energy bills spiked as HVAC systems struggled to heat and cool the constant flow of unconditioned outside air. Humidity control became more difficult. Comfort complaints rose. And in some regions, the “fresh air” being drawn inside was anything but fresh. Things like wildfire smoke, traffic emissions, and industrial pollutants all found their way indoors.


Fast forward to today, and the conversation has shifted. ASHRAE and other standard-setting bodies have recognized that the blanket approach of maximum ventilation isn’t sustainable as a long-term practice.


As we’ve moved past the emergency phase, a more nuanced picture is emerging. Outside air confers benefits (especially in terms of health), but it also imposes costs: energy, comfort, mechanical wear, sometimes even polluted air if your outdoor environment isn’t clean. ASHRAE, energy codes, and HVAC practice are now pushing toward finding balance. One big part of that shift is outside air reduction (or controlling outside air to what’s necessary, rather than “as much as possible”).


Why Reduce Outside Air? What Are the Trade-Offs


To see why reducing outside air is resurfacing, it's helpful to walk through what the costs are and what the benefits might be of dialling things back.


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The Costs of Too Much Outside Air

  1. Energy Use

    • Heating and cooling costs skyrocket when you have to condition large volumes of outdoor air, especially in extreme climates. In summer, bringing in hot, humid air means your cooling system works harder; in winter, cold air needs heating.

    • Beyond simply heating/cooling, there’s also fan energy. More outside air often means more airflow through dampers, larger pressure differentials, etc.

  2. Visual Comfort / Thermal Discomfort

    • Cold drafts in winter; humid, sweaty feelings in summer if moist outdoor air isn’t adequately dehumidified.

    • Inconsistent thermal zones due to mixing outside air with return or recirculated air.

  3. Mechanical Wear & Maintenance

    • Outside air includes particulates, pollutants, and moisture. Therefore filters, coils, ducts, and dampers need more maintenance.

    • When outside air brings in pollutants or high humidity, it can cause corrosion, mold, or damage to finish materials.

  4. Indoor Air Quality Considerations

    • Ironically, bringing in outside air isn’t always “cleaner”; if outdoor air is polluted (e.g. wildfire smoke, high PM2.5, industrial pollution), ventilation could degrade indoor air quality.


The Benefits of Reducing Outside Air (When Done Right)

  1. Energy Savings

    • Reduced heating/cooling loads → lower utility bills.

    • In some ASHRAE Standard 90.1 addenda / code changes, reducing outdoor air intake is explicitly a path toward improved energy efficiency. For example, changes made in standard 90.1-2019 (and later) allow reduced outside air intake in central systems and reduced minimum flows in VAV (variable air volume) boxes. Energy Codes

    • Buildings with moderated outside air approaches (versus maximum outside air strategy) can often hit much better energy performance, especially in climates with extreme temperatures.

  2. Comfort and Building Stability

    • More stable indoor temperatures, less risk of humidity spikes or condensation issues.

    • Better ability to maintain indoor comfort metrics, which improves occupant satisfaction.

  3. Cost Predictability & Maintenance Savings

    • Less strain on HVAC equipment.

    • Lower maintenance cost due to fewer introduced contaminants, less filter load, etc.

  4. Health / IAQ Still Possible

    • By using strategies such as proper filtration (appropriately rated filters), UVGI, good air distribution, and periodic flushing, you can maintain healthy indoor air even with more controlled outside air.

    • ASHRAE guidance, post-COVID, suggests that ventilation + filtration + other engineering controls together are the path—not merely “open all dampers.” ASHRAE


How ASHRAE & Codes Are Shifting


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The push to balance ventilation, energy and comfort is finding formal expression in updated standards and codes. Some key threads:

  • ASHRAE Standard 62.1 (Ventilation for Acceptable Indoor Air Quality) has been the go-to for minimum ventilation. But recent addenda adjust how outside air rates are calculated, especially in Variable Air Volume (VAV) systems, enabling more dynamic or performance-based approaches. Energy Codes

  • ASHRAE Standard 90.1 (Energy Standard for Buildings Except Low-Rise Residential Buildings) is increasingly recognizing that “more outside air” is not always the optimal path for energy efficiency. The 2019 to 2022 versions include addenda that allow for reduced outdoor air intake in some scenarios and model outside air intake more precisely. Energy Codes

  • Post-COVID Guidance from the Epidemic Task Force and other committees acknowledges that increased ventilation is helpful for infectious disease mitigation—but also warns about the cost, feasibility, and trade-offs. ASHRAE’s filtration & disinfection guidance, for instance, emphasizes that filters should be sealed well, systems should be maintained, and energy impacts considered. ASHRAE

  • There is growing interest in “ventilation efficiency” (i.e. how well the outdoor air being brought in actually participates in diluting contaminant levels) vs simply “bringing in more air.” That opens doors for smarter design: placement of supply/exhaust, air distribution patterns, possibly recirculation with clean filtration, and technology like UVGI in ducts. arXiv


What Building Owners / Managers Should Do

If you’re in charge of managing indoor air quality, HVAC systems, or the budget, here are some practical steps, questions, and strategies to move toward smart outside air reduction without compromising health or compliance.

Step

What to Do

Key Questions & Considerations

1. Audit your current system

Measure how much outside air is being brought in currently. Identify how often dampers are fully open, what settings for minimum outside air are. Document past energy bills, thermal comfort complaints.

Do you really need to run at 100 % outdoor air all the time? What’s the outside-air fraction during non-peak periods? How often are you using demand-controlled ventilation?

2. Model / simulate

Use energy modelling (or vendor/engineering consultants) to simulate what energy & comfort impact you’d see from reducing outside air to code minimum vs current levels vs maximum “pandemic level.” Include local climate, outdoor pollutant levels.

What’s your climate? How extreme are winters / summers? What are outdoor pollution or humidity challenges? Can your HVAC system handle variable loads well?

3. Filter & clean

If you reduce outside air, you’re inherently relying more on “recirculation / indoor air cleaning” to maintain IAQ. Ensure your filters are appropriate efficiency, well sealed, replaced regularly. Consider supplementary measures (UV, air cleaners, HEPA, etc.).

What is the MERV rating you’re using? Can your fan/coil handle higher efficiencies without losing capacity? How about maintenance cycles?

4. Design flexibility & control

Make systems adjustable—both in terms of outdoor air intake (dampers, controls) and monitoring (CO₂, PM2.5, VOCs). This allows ramping up when needed, and reducing when risk is low or when conditions are unfavorable.

Do you have sensors to detect indoor air quality? Do your controls allow override or programmed changes? Are occupants/management aware and aligned with policy?

5. Engage stakeholders

Staff, occupants, board members often worry that reducing outside air means compromising health. Transparency helps: show them energy/comfort data, IAQ readings, trade-offs. Sometimes policies (e.g. open windows during good outdoor air, closed when it’s bad) help.

What are occupant expectations? Do you have health policies in place? Who signs off on trade-offs (e.g. budget vs comfort)?

6. Monitor & adjust

After changes, monitor indoor environment (temperature, humidity, CO₂, pollutant levels), energy, comfort complaints. Be ready to adjust. Outside air isn’t a static setting; it’s dynamic.

How often will you review? What thresholds trigger change? For example: high CO₂ or PM2.5, or outdoor air pollution alerts, might warrant reducing outside air.


What This Means for Policy, Standards, & the Future



Energy codes & carbon targets

As jurisdictions push toward net zero or carbon reduction, the HVAC energy penalty of over-ventilating becomes a liability. Efficient outdoor air management helps reduce energy use, which helps reduce emissions. ASHRAE 90.1’s newer addenda are already projecting energy savings from smarter outside air settings. Energy Codes


Health & resilience

Pandemics have taught us that buildings need flexibility—not fixed, extreme settings. Systems that can adapt: e.g., crank up ventilation when risk is high, pull back otherwise—are more resilient. Outdoor air reduction is part of enabling that flexibility.


Indoor air quality (IAQ) & occupant wellness

People increasingly expect buildings (schools, offices, public spaces) to deliver both clean air and comfort without extreme energy waste. Outside air reduction done thoughtfully helps spread the benefits: lower energy bills, better comfort, less waste.


Cost pressures

Energy costs are volatile. Running massive outside air loads just to “play it safe” all the time may no longer be financially justified, especially in regions with high energy costs or challenging climates.


Getting Outside Air Right, Not Just More


After so many years where the message was “more outside air, more safety,” we’re entering a more mature phase—one where how outside air is managed, rather than just how much, becomes the critical question.


Reducing outside air (when it can be done safely) doesn’t mean lowering standards or compromising on health. It means using all the tools: ventilation, filtration, controls and monitoring, to deliver indoor air quality that is healthy, comfortable, sustainable and cost-effective.


If you’re managing buildings, this is the moment to rethink your default settings. Push for audits, invest in systems and sensors, communicate clearly with occupants. Because the buildings that get this right will be healthier, more resilient, and much more efficient in the long run.



 
 

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