Tech companies are building larger datacenters to support growing cloud services like search, video sharing, and web apps. This requires more efficient datacenters that use less energy and have cheaper operating costs. Companies are improving power efficiency through voltage regulation and removing unnecessary components. Cooling efficiency is increased through techniques like "smart cooling" and using containers for airflow. Datacenter efficiency is measured using a PUE index of total power used over server power, with top companies achieving a PUE of 1.15 to 1.22. Virtualization allows datacenters to utilize up to 80% of capacity compared to 15% without it.