Deep Dive Think Tank: Energy Costs and Strategies for Reduction

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1 Deep Dive Think Tank: Energy Costs and Strategies for Reduction Andrew Donoghue European research manager, Datacenter Technologies 1

2 Discussion points Does energy cost really matter or does uptime still matter? How does energy price and costs influence design and operation? Would you consider locating facilities based on electricity price? E.G Nordics, Scandinavia Efficiency is about facilities but also IT improvements. Is senior management scrutinizing energy use? Is reporting required. What metrics for measuring energy efficiency? Do carbon emissions and taxes really matter? Cost of compliance with CRC? Also European Energy Directive. Mandates reporting. What are the quick wins for energy reduction/efficiency What are commercial operators paying compared to enterprise? Any benefits to on-site generation or approaches such as demand response? 2

3 Energy costs

4 Environmental scrutiny + regulation Greenpeace How clean is your cloud? How dirty is your data Focus on source of energy not just efficiency New York Times Power, Pollution and the Internet (2012) Regulation UK CRC (CCA) EC planning to regulate? 4

5 Datacenter industry opportunities Datacenter operators can change the economics by better utilizing assets: primary onsite power generation, microgrids and demand response participation. Examples in the industry range from traditional operators generating revenue with demand response to ebay's multimegawatt fuel cell microgrid and the lack of gensets or UPS protection on the IT load in their final design. Source: ebay

6 How to measure energy efficiency? 6

7 Carbon and water use tracking Uptime Institute 2013 Global Survey of Datacenter Operators 7

8 Half of datacenter costs committed up front 15 year TCO for a 3MW datacenter = $90m 8

9 Power consumption by datacenters For both US and global trends, the curves represent an approximate doubling every five years. c/o Christian Belady presentation, Projecting Annual New Datacenter Construction Market Size 9

10 Example of energy efficiency growth. Throughput per $ spent on energy.. 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Average US DC 2013 Hyperscale DC 2013 US DC 2015 US DC 2017 US DC 2019

11 Economics of hyperscale datacenters Reliable Datacenter PLC Colossalcloud inc Servers/IT equipment Branded servers Bought by customer? IT efficiency (utilization) Few VMs per server Storage utilization low Throughput per watt Moore s Law Servers swapped out slowly Energy price Must pay local rates Full price (100%) 15% 2x every 2-6 years 12 cents per KWh Servers/IT equipment ODM or custom built Large volume discount IT efficiency (utilization) Many floating VMs per server Storage managed Throughput per watt Moore s Law drives performance Servers swapped out rigorously Energy price Site selection secures low price 50% 30% 2 x every 2 years or less 3 cents per KWh Energy overhead (PUE) Higher tier limits energy savings Site, customers limit innovation Facility build costs Higher tiers cost more City sites cost more, limit space x m per MW Energy overhead (PUE) Engineers drive down energy Business model allows low tiers Facility build costs Lighter infrastructure costs less Remote sites cost less x 1.3 6m per MW Financing costs Capital may need to be raised VAT, rates, income tax can be high 3-8% capital & taxes Financing costs Cash on balance sheet or cheap VAT, rates, income tax negotiated Very low

12 Energy is a growing datacenter cost

13 Efficiency measures

14 Disruptive power and cooling Technology or strategy Impact Maturity Difficulty of adoption Enclosed hot/cold aisles High High Low High Free or fresh air cooling High High Med High Raise operating temperature High High Low High Modularization High High Med High Absorption chillers Low/Med Med Med Med Containers High Med High Low Relocate (green power, cooler) High Low High Low Direct current distribution Med/Low? Low High Low Liquid cooling Med/low Med High Low Thermal storage Med/low? Med Med Low Heat recycling Med? Low High Low Fuel cells/local generation Med? Low High Low Dynamic smart cooling Med? Low High Low Adoption

15 Disruptive energy efficient IT Technology or strategy Impact Maturity Barriers to adoption* Adoption Virtualization/consolidation High High Med High Efficient, multicore servers Med/high High Low High Med/High High Med Med Identify, eliminate unused equipment Use of cloud services to preserve energy, carbon Med Low Med Low Storage management Med/low Med Med Low Power management/power capping Med Low High Low Application monitoring and chargeback? Low High Low Load shedding and balancing? Low High Low Barriers to adoption = complexity * cultural resistance * investment

16 IT needs to catch-up to facilities on energy efficiency Source: Uptime Institute datacenter survey 2013 Some challenges: IT department owns servers but doesn t see or pay bills. Datacenter managers incentivized on availability, not efficiency Business management not held accountable for energy use by applications Power companies offer discounts for greater energy use (while also offering incentives for less energy use!)

17 Comatose servers waste more than just energy Decommissioning one rack unit of servers can result in energy savings of: $500 per year in energy costs $500 in operating system licenses $1500 in hardware maintenance costs (Uptime Institute Annual Data Center Survey 2013)

18 IT is the biggest consumer of energy in most facilities Source: Emerson Network Power Energy Logic whitepaper

19 Energy savings in IT cascade through the datacenter Source: Emerson Network Power Energy Logic whitepaper

20 Renewable energy And heat-reuse

21 RENEWABLES ARE INTERMITTENT, EXPENSIVE AND REQUIRE A LOT OF SPACE A 1MW solar plant could cost $4m Need 4 acres of non shaded space Produce no energy at night and little in heavy cloud Require inverters and other investments.

22 THE Price of RENEWABLES IS DECREASING IN LONG TERM

23 RENEWABLE ENERGY REGULATIONS AND INCENTIVES REGULATORY POLICIES FEED-IN TARIFFS ELECTRIC UTILITY QUOTA OBLIGATION NET METERING TRADABLE REC TENDERING HEAT OBLIGATION/MANDATE BIOFUELS MANDATE FISCAL INCENTIVES AND PUBLIC FINANCING CAPITAL SUBSIDY INVESTMENT OR PRODUCTION CREDITS REDUCTIONS IN SALES ENERGY, C02 TAXES ENERGY PRODUCTION PAYMENT PUBLIC INVESTMENT LOANS

24 Datacenter heat re-use and recovery

25 Is A Net Zero Energy Data Center Possible?

26 RENEWIT TOOL WEB BASED TOOL MODEL COMBINATIONS OF RENEWABLES AND ENERGY EFFICIENCY TECH DIFFERENT DATACENTER LOCATIONS/CLIMATES OUTPUT METRICS: PUE, ERE, CUE

27 Power PURCHASE AGREEMENTS & Renewable Energy tariffs

28 Thank you!

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