BLUE SKIES WITH GREEN CLOUDS - LIGHTING UP THE NORDIC DATACENTER SCENE

Transcription

1 BLUE SKIES WITH GREEN CLOUDS - LIGHTING UP THE NORDIC DATACENTER SCENE TOMAS SOKOLNICKI BUSINESS SWEDEN VINCE VAN SON FACEBOOK

2 OUTLINE & BACKGROUND 1. A few words on the Nordics 2. Data center scene 3. Energy scene 4. Connectivity scene 5. Summing up BUSINESS SWEDEN 23 NOVEMBER,

3 THE NORDICS BUSINESS SWEDEN 23 NOVEMBER,

4 THE NORDICS A QUAINT CORNER OF EUROPE BUSINESS SWEDEN 23 NOVEMBER,

5 TOGETHER, THE WORLD S 12 TH LARGEST MARKET 10% of Western Europe s GDP ICELAND FINLAND NORWAY DENMARK SWEDEN 25 million people..and AMONG THE MOST INNOVATIVE & CONNECTED The Nordics are home to some of the best connected and most innovation-driven economies in the world. Indeed, these five countries have featured in the top 20 of every edition since EU Innovation Performance Global Information Technology Report 2015, World Economic Forum. The index measures how successful 143 economies are at applying ICTs to boost competitiveness and well-being. tradingeconomics.com, Innovation Union Scoreboard 2015

6 THE NORDICS DISPROPORTIONATE ON TECH, VENTURE CAPITAL & OLYMPIC MEDALS! NORDICS VS EUROPE COPYRIGHT CREANDUM. SOURCES: EVCA, THOMPSON, DOW JONES, CREANDUM, TRUFFLE, DELOITTE, INTERNATIONAL OLYMPIC COMMITTEE. * INCLUDES ALL GOLD MEDALS BETWEEN FOR EXISTING AND PREVIOUS EUROPEAN COUNTRIES BUSINESS SWEDEN 23 NOVEMBER,

7 GROWTH IN TRAFFIC DRIVES NEED TO SCALE DIGITAL INFRASTRUCTURE ,4x 4x 3x 2019: 4 out of 5 data center workloads will be processed in the cloud TCO very important IoT applications by 2019: 500+ ZB data generated per year CISCO CLOUD INDEX REPORT 2015 BUSINESS SWEDEN 23 NOVEMBER,

8 THE DATACENTER SCENE BUSINESS SWEDEN 23 NOVEMBER,

9 PRE-2007 ORGANIC MARKET FEW (IF ANY) DATACENTERS OVER 3 MW Reykjavik ICELAND FINLAND SWEDEN NORWAY Helsinki Oslo Stockholm DENMARK Copenhagen * Public sources, illustrative only. Logotypes may not be correctly depicted.

10 2015 PROVEN GROUND FOR WEBSCALE Reykjavik ICELAND FINLAND SWEDEN NORWAY Helsinki Oslo Stockholm DENMARK Copenhagen Public sources, illustrative only. Logotypes may not be correctly depicted.

11 THE ENERGY SCENE BUSINESS SWEDEN 23 NOVEMBER,

12 SECURING A DATA CENTER ENERGY SUPPLY SOLUTION A QUEST FOR THREE KEY ATTRIBUTES Reliability Environmental Footprint Cost BUSINESS SWEDEN 23 NOVEMBER,

13 RELABILITY BEGINS WITH INFRASTRUCTURE LOCATION, LOCATION, LOCATION The Nordics Rank very highly in country level energy and infrastructure rankings Benefit from valuable experience supporting energy intensive industries Offer high levels of redundancy through an abundance of transmission and generation capacity BUSINESS SWEDEN 23 NOVEMBER,

14 OVERALL STATISTICS ARE INTERESTING BUT SITE SPECIFIC GRID EVENT DATA IS REQUIRED Average Interruption Time (Minutes/Year) for Customers Connected to Distribution Networks SOURCE: CEER (12 FEB 2015) AND ENTSO -NORDIC AND BALTIC GRID DISTURBANCE STATISTICS 2014 (21 OCT 2015) BUSINESS SWEDEN 23 NOVEMBER,

15 SMALL ENVIRONMENTAL FOOTPRINT 84% OF NORDIC GENERATION PRODUCED NO CO2 TWh Generation from renewable energy sources is 62% in Nordics and 22% in EU 9% 41% 8% 42% 0.0 4% 96% 43% 35% 2% 20% SOURCE: IEA, SWEDENERGY, FINGRID, DANISH ENERGY Thermal Nuclear Solar Wind Hydro 55% 2% 43% SE NO FI DK Total Nordic Generation (2014) 389 TWh 22% Nuclear 17% Thermal 7% Wind 55% Hydro Country /Region 2013 g CO 2 /kwh Norway 5 Sweden 20 Finland 300 Denmark 475 Nordic 100 EU 450 BUSINESS SWEDEN 23 NOVEMBER, Hydro Wind Solar Nuclear Thermal

16 ENERGY SUPPLY SUPPLY FROM WIND ENERGY IS GROWING RAPIDLY AND WILL FAR EXCEED RETIREMENTS Change in Generation in Nordics (TWh) Type SE DK FI NO Total Wind Hydro 0.0 Nuclear Nat. Gas (CHP) Biofuel (CHP) Coal Total Annual wind energy production added to the Nordics in the next ten years is approximately equal TWh Nordic Wind Energy Generation (TWh) Sweden Denmark Norway Finland Historic 5 to the total annual energy consumption of Denmark SOURCE: VATTENFALL BUSINESS SWEDEN 23 NOVEMBER,

17 AVERAGE ENERGY DEMAND OVER 1 GW LESS THAN A DECADE AGO Decline in (temperature adjusted) demand due to: Global financial crisis Structural changes to traditional industries Total delivered cost (w/taxes and levies) Increased energy efficiency 1+ GW Abundant supply for a growing data center industry SOURCE: SCB FOR ACTUAL CONSUMPTION, VATTENFALL FOR TEMPERATURE CORRECTION AND E-BOILER ADJUSTMENT BUSINESS SWEDEN 23 NOVEMBER,

18 ENERGY MARKET CURRENTLY FAVORS BUYERS WHOLESALE ENERGY PRICES FOR SUBSEQUENT YEAR HAVE FALLEN High fuel prices Economic crisis, low industrial demand Front Year Price (EUR/MWh) for Base Load CO 2 price collapsed Low hydro balance, nuclear refurbishment Fukushima More and more Renewables, dropping CO 2 prices, lower demand Belgian Nuclear outages Low hydro balance Emissions trading introduced NorNed Cable online BritNed Cable online SOURCE: EEX, NORDPOOL BUSINESS SWEDEN 23 NOVEMBER,

19 THE CONNECTIVITY & FIBRE SCENE BUSINESS SWEDEN 23 NOVEMBER,

20 BUSINESS SWEDEN 23 NOVEMBER,

21 BUSINESS SWEDEN 23 NOVEMBER,

22 NORDICS - FIBRE SITUATION CLOSE-UP FIBRE INFRASTRUCTURE IS A COMMON RESOURCE Shared common infrastructure with critical mass in the region Multiple national networks provide redundancy Major links with Russia s 90 million internet users Cinia Group Sea Lion BUSINESS SWEDEN 23 NOVEMBER, 2015

23 EURO-IX, NETNOD, INDUSTRY SOURCES Gbps TRAFFIC GROWTH & CONNECTIVITY 11X 13X GROWTH SINCE Euro-IX, Average aggregated peak traffic per year In 2007, NetNod, the Internet Exchange in Stockholm had 44 Internet networks connected, 2 Russian networks. (RETN and Comstar) 2015, NetNod has over 125 connected networks: Akamai, Amazon, Apple, Cloudflare, Edgecast, Facebook, GoDaddy, Google, IBM Softlayer, LeaseWeb, Limelight, Microsoft, Netflix, Riot Games, Twitch, Twitter and Vkontakte 10 major Russian companies and first African operators 23 NOVEMBER,

24 LATENCY IS ALL ABOUT DISTANCE. ROUNDTRIP DELAY, MS Seattle 4600 km 1200 km New York San Francisco Helsinki 1000 km Moscow Distance / Roundtrip delay Seattle New York 4600 km / 67 ms 3600 km Madrid Milan Helsinki Madrid 3600 km / 52 ms LATENCY SEATTLE MIAMI: 87 MS. HELSINKI GIBRALTAR: 72 MS Madrid Stockholm Frankfurt but Johannesburg Stockholm Johannesburg Frankfurt 29 ms 203 ms 196 ms 7 ms BUSINESS SWEDEN 23 NOVEMBER, BUSINESS SWEDEN 23 NOVEMBER,

25 BUT ALSO ABOUT NETWORK TOPOLOGY, APPLICATIONS & BUSINESS NEEDS ROUNDTRIP DELAY, MS 2007 Tech-risk-driven latency requirements 25 ms delay is better than 27! ICELAND Reykjavik NORWAY Oslo SWEDEN Stockholm Helsinki Istanbul 78 ms Stockholm Moscow 26 ms Stockholm Kiev 35 ms Oslo Milan 45 ms FINLAND Helsinki St Petersburg 2015 Balancing business application - cost What is good enough for us? Dublin London DENMARK Copenhagen Amsterdam Frankfurt Warszawa Minsk Kiev Moscow Paris Belgrade Istanbul SOURCE: WONDERNETWORK.COM BUSINESS SWEDEN 23 NOVEMBER, BUSINESS SWEDEN 23 NOVEMBER,

26 The Netflix ISP Speed Index is a measure of prime time Netflix performance on particular ISP s around the globe. (Speed Mbps) Country Highest Lowest Avg USA Country Highest Lowest Avg Denmark Finland Norway Sweden Country Highest Lowest Avg Ireland BUSINESS SWEDEN 23 NOVEMBER,

27 OBJECTS IN MIRROR ARE CLOSER THAN THEY APPEAR BUSINESS SWEDEN 23 NOVEMBER,

28 SUMMING UP BUSINESS SWEDEN 23 NOVEMBER,

29 THE NORDIC PORTFOLIO 23 NOVEMBER,

30 DATACENTER COMPANIES PUSHING DESIGN BOUNDARIES IN THE NORDICS Climate Structural capital Cooling Sea water, district cooling, groundbased, geothermal Grid Removing gen-sets Pioneering district heating & cooling networks Robust electricity infrastructure History of energy intensive industry with critical reliability needs Heat re-use Since the 70 s now going fully commercial Design innovation Modular, aerodynamics, moon base, wood Facility re-use Rock-shelters, printing facilities, paper mill BUSINESS SWEDEN 23 NOVEMBER,

31 SITE DEVELOPMENT & CONSTRUCTION STATEMENTS FROM INTERNATIONAL COLO-PLAYER AND GENERAL CONTRACTOR Nordic points as articulated by two international players Construction statistics not relevant From experience, construction costs Nordic less expensive than London, Germany and the Netherlands, especially in main cities. Same price as equivalent project in the US. Same suppliers all over Europe => pan-european prices. Local variations exist Construction projects on time Quick building permits No need to secure electricity contracts in advance Corporate taxes in Nordics are low Lowest operational PUE s among corporate site portfolio..it only took two weeks before we had our decision, we ve never seen that before! (Digiplex) It s all about short timeto-market. We want to avoid risks, and hate un-expected costs! Eg electricity cable cheaper in Nordics! Need in some markets to sign contract in advance, paying a premium for a few years Corp Tax (nominal) SOURCES: INTERVIEWS, UPPLANDS-VÄSBY MUNICIPALITY BUSINESS SWEDEN 23 NOVEMBER,

32 TOWARDS 2020 Shorter time to certainty of cost, risk & schedule Differences between the best sites are shrinking Development & operational experience Specialization and supply chain People: critical mass of education, training & skills Pre-permitting & packaging - actionable data, site details, ability to develop, cost and schedule Harmonization - regulation, taxes, prices Common market for labour and materials Technology reducing distances Sharing best practices, Sustainability grids becoming greener BUSINESS SWEDEN 23 NOVEMBER,

33 THANK YOU! BUSINESS SWEDEN 23 NOVEMBER,