Europe's second largest web host is to become the first company to power its computer centres entirely from renewable energy.

Strato claims that its 30,000 dedicated servers and matrix web hosting platform will be 100 per cent CO2 free from January 2008, enabling it to reduce its emissions by approximately 15,000 tons per year.

"Instead of depending on individual eco-packets and eco-servers, we are transferring the entire energy supply for our product portfolio to renewable energy without raising our prices," said Strato chief executive Damian Schmidt.

"We are proving that acting responsibly in environmental matters is a realistic option, even in the highly competitive web hosting market."

Strato boasts that it has already reduced energy consumption by 30 per cent per customer over the past 18 months through energy-efficient hardware, intelligent solutions in building services engineering and platform-optimised software.

Schmidt told vnunet.com that companies should not sit on the sidelines waiting for regulations to force them into action, but should take action now because even if the upfront costs are higher they are far outweighed by the long-term savings.

Strato has worked closely with Sun Microsystems and AMD to create systems specifically designed for purpose, thereby conserving up to 90 per cent of the energy on a CPU basis compared to its previous system.

The firm also worked with the University of Berlin to develop a highly efficient air-cooling system similar to that used in the new Airbus 380, which can significantly lower cooling costs when combined with intelligent building design.

Schmidt told vnunet.com that the company had developed most of the software it uses in-house thereby reducing processor usage on unused and legacy features and resources. "Bad code is a climate killer," he added.

To complete its carbon neutral plan Strato is becoming one of the largest customers of German company NaturEnergie AG which will provide Strato with power generated from river water in hydro-electrical power plants on the upper Rhine.

The company admits that using renewable energy is more expensive, but has managed to maintain prices for its customers owing to a cut in electricity usage per customer.

"All companies should be doing something to slow the process of climate change. Our view is that using renewable energy not only helps the climate, but saves on your bills," concluded Schmidt.