When it comes to green data storage, data deduplication ranks right up there with SSDs in my book, but those aren’t the only ways to make storage systems more energy efficient and better performing. And VCs are taking notice.

Avere Systems announced today that it has secured $17 million in Series B funding from Tenaya Capital, Menlo Ventures and Norwest Venture Partners, bringing its total haul to date to $32 million. The Pittsburg, Pa.-based startup makes “demand-driven” storage appliances that house both SSDs and traditional hard disk drives.

The appliances analyze NAS (network-attached storage) usage and retrieval patterns to automatically place data in tiers where they can be most effectively and efficiently stored. This means that frequently accessed and modified data is automatically placed on its high-performing arrays, delivering quick access and lowering the power draw from constant read/write activity on traditional, disk-based storage systems. According to the company, its FXT Series appliances have already found a home at Sony Pictures Imageworks and GX Technology and can deliver “a 5:1 reduction in disks, power, and rack space.”

Little wonder, then, that the funds keeps flowing. Given the rise in Green IT visibility among the C-suite, venture capital firms are increasingly targeting companies that can help data centers reduce energy consumption while keeping pace with breakneck gains in computing performance. Tenaya Capital’s Managing Director and new Avere board member, Brian Paul, said that the startup has been on his company’s radar. “Avere has proven to be a company that simply cannot be ignored. We have been watching Avere closely since they entered the market and we are very excited about their disruptive technology and the value they bring to customers.”

While some rival storage companies may take issue with how “disruptive” Avere’s intelligent tiering tech is, it’s nonetheless a good time to be a green data storage startup.