The Oregon State Data Center (SDC) provides shared IT infrastructure services to thousands of state and local government programs. As the center’s data needs increased, SDC began looking for ways to reduce costs and improve operational efficiency. Installing two new blade servers and making effective use of virtualization software saves the center nearly $10,000 annually in energy costs. Virtualization also enabled the SDC to consolidate the number of servers from 125 down to 6 within a mere two years, resulting in a reduction in spending on software licensing and technical support in addition to substantial energy savings. The SDC now has 150 percent more computing capacity and can continue to expand its operations with minimal additional energy use.