What is a Data Center? Internet Data Centers: End User & Developer Requirements Janice Fetzer KC Mares A highly specialized, reliable environment to support computers, network and data storage devices Space (computer racks and/or cabinets) Enhanced electricity, cooling (~99.999%) Physical & Virtual Security ( fortress ) High-capacity fiber & carrier connectivity Managed services Private users Colocation History of data centers Before the internet Since the internet 2 http://www.equinix.com Racks and Servers 3 http://www.equinix.com 4 http://www.equinix.com At The Click Level Equinix - Key Facts Consider that every time you conduct a web search on one of Yahoo s sites, for example, you activate roughly 7, or more computers and that doesn t count at least 15, others that support every query by constantly poking around the Net for updates. - Fortune Magazine Current issue 5 http://www.equinix.com 26 worldwide market leader with $219M revenue* Headquartered in Foster City, CA; incorporated in 98 436 employees Operate data centers in 11 key markets in the U.S. and Asia-Pacific Currently - ~17 data centers, 31, cabinets, ~1.7m sq. ft. Building this year 3 data centers, 5,9 cabinets, ~4, sq. ft. ~1, customers: 2+ of the largest networks 9 of the1 largest content sites and US Government IT Infrastructure The largest integrators host their Fortune 5 customers *Source: Tier One. Estimates based on space, power & cross connect MRR revenues 6 http://www.equinix.com 1
Equinix - Services Equinix - The Hub of The Internet Level 3 NTT Colocation Interconnection Managed Services Cabinets Power Security Cross Connects GigE Exchange Professional Services Managed Services - Asia 7 http://www.equinix.com With every major domestic and international network as a customer, Equinix acts like an airport hub, connecting business to the routes/carriers that lead most directly to the desired destination All Tier 1 ISPs peer in Equinix IBXs via Internet Core Exchange (ICE) 8 http://www.equinix.com Industry Segments & Government 1,2 Network Effect Draws More Verticals 9 http://www.equinix.com Number of Customers 1, 8 6 4 2 Int l / PTTs Cable Multi-Nat ls Vertical Focus: Digital Media VOIP Multi-Nat ls 1999 2 21 22 23 24 25,, Government Significant traction Multi-Nationals Gaining momentum 1 Vertical Segments - Current focus http://www.equinix.com Growth Drivers Industry Drivers Broadband Services & Mobile Data New and Government Deployments Industry Consolidation Power and Cooling Trends Roll out of VOIP Multimedia video, music, gaming Internet traffic growth Disaster recovery IP enabled applications Multi-network connectivity Telecom providers focusing on core offerings Limited high-end data center supply Next generation hardware Increased server density Power limitations Colocation growth: Colocation grew 11% Y/Y in 25, expected to grow 14% in 26 and 1% in 27 Demand drivers: Outsourcing on the rise in the enterprise segment New hardware driving power requirements Broadband driving new business growth Supply drivers: Limited new builds in 4 years cost to build next-gen centers rising Existing sites in key markets at high utilization demand up 67% with supply up only ~6%* High power requirements have escalated utilization and inventory depletion 11 http://www.equinix.com 12 http://www.equinix.com 2
Equinix Geographic Presence IBX Hubs 1,7,+ square feet in 11 key markets* Hong Kong Singapore - Current expansion focus Chicago Silicon Valley Dallas NYC Metro Tokyo Los DC Metro Angeles Honolulu Sydney 13 * Includes 3K square feet of new space from 3 IBXs opening in first half of 26 http://www.equinix.com Where Else? Although Equinix s business model requires that our data centers be in tier one cities, many high density internet companies (Yahoo, Google, Microsoft, etc.) are locating in areas where power costs are less: Quincy, WA The Dalles, Oregon Manassas Park, VA Tier two cities in Canada, Michigan, Minnesota, Kansas, Nebraska, Georgia 14 http://www.equinix.com Site Selection Criteria Location avoid flood planes, other disaster risk areas Building features Large ~1, sq. ft. or more, stand alone warehouse High bay 18, minimal columns No overhead water High load floors and roof decks Structurally strong Room around perimeter for generator and chiller equipment Fiber not as big a problem as before Power Cost and Capacity the Biggie. Last three requests were for 12, 27 and 45 mws 15 http://www.equinix.com What s s It Take to Build? Time and Cost to Build Data Centers It costs from ~$6 - $1,5 per sq. ft. to build a data center compared with $1 $2/sf for a standard office bldg. Our new builds are from 1, - 25, sf with budgets ranging from $5M to $14M each It can take 9 months to 1 year to build Build to last 2 years Speed Why do we need these so fast? Impatience of the internet s demand for expansion and speed Users can be ready to fill racks with equipment within a couple of months of ordering it Our timelines to deliver are completely incompatible with customers timelines of need 16 http://www.equinix.com Data Centers in Your Community? What do we bring to the community? Our sites become hubs of technology with over 25 customers, who have staff on site in our data centers Communities can realize considerable tax revenue from our sites What do we bring to utilities as customers? High load factor High demand and usage on one meter Sophisticated engineering and construction teams Sometimes interruptible loads Design commenced 3/6 Target Opening Q1 27 1, sq. ft. Sample Data Center Cabinets ~ 1,7 @ 4kW 12 mw 17 http://www.equinix.com 18 http://www.equinix.com 3
Power Why So Much? Faster processors have required more power, until recently although Watts/Mhz is decreasing Future generations of processors are projected to use more power except for mobile processors, which will become more dominant over time, although slowest adoption in servers Servers are getting smaller. In five years we ve seen 5x decrease in average server size and a 2x increase in power consumption 4 kw/cabinet = ~4 mws/acre Let s take a look at how these changes affect data center power designs 19 http://www.equinix.com 9 8 7 6 5 4 3 2 1 Designed Watts per Cabinet Watts per Cabinet Today twenty HP- DL38s can fit into a standard cabinet. On average each consumes 45 Watts or 9, Watts/cabinet These replace five 21 Sun servers which consume 25 Watts each but only five could fit into a cabinet for a total of 1,25 Watts/cabinet 1998 1999 2 21 22 23 24 25 26 27 28 29 21 2 http://www.equinix.com 3 25 2 15 1 5 Designed Watts per SF 1998 1999 2 21 22 23 24 25 26 27 28 29 21 Watts per Square Foot Designed capacity in watts/sf has been increasing as servers decrease in size and increase in overall power consumption Each cabinet consumes ~2 SF (incl. aisles). At 9 kw each, this equates to 45 watts/sf Actual usage is increasing to design as older servers are replaced with newer rack-mount styles 21 http://www.equinix.com Actual Usage Climbing LBNL data study on actual usage per sf over the entire raised floor 23 = 25 watts/sf 25 = 5 watts/sf Servers have a ~ 5 year life, so transition to higher draw servers is occurring Transition to smaller, more dense servers is occurring rapidly Transition to blade servers is beginning 22 http://www.equinix.com Avg. U/Server Kilowatts/ rack Watts/ser ver Watts/sq ft 6 Actual Data Center Changes over One Year Q1 Q2 Q3 Q4 4.5 2.9 38 3.6 4. 327 229 3.1 5.5 38 312 3.1 5.75 412 35 23 http://www.equinix.com Power Capacity Projections We talk in terms of kw per rack, not sq.ft. (A data center is a power plant with fiber.) 22 1.75 kw/rack 22 26 customer average use rose to 2.25 kw/rack 26 engineering 4 kw/rack Some customers are using up to 1 kw/rack and 3% of Equinix customers want cabinets > 4 kw Others in the industry are talking about 25 kw/rack and more Blade servers, very power dense: adoption occurring Rack manufacturers are providing solutions: air cooled water cooled (Can support < 4 kw each, or 2, watts/sf) DC power Equinix is working with other partners on studying advantages of going to DC power 24 http://www.equinix.com 4
How Much Power Will You Need To Deliver? Customers using 1.75kW/rack in 1 are now using 2.25 (x2.29), growth during the downturn. Customers tell us they need 4kW/rack now. Some are using 8kW 1kW. Predictions go up to 25kW and 3kW. Given all that you hear and read about what s next on the Internet, where do you think it is in its evolution? Infancy Childhood Adolescence Adulthood Given what you know about the loads required to power it at its current state, how much power will be needed 3 years from now? 5 years? 1 years? The math is probably not linear. 25 http://www.equinix.com Conclusion Big Bad and Ugly? No, highly exciting. Opportunity to power this burgeoning industry that changes lives and economies Internet is growing, it s using power yet far more efficient at work produced for each power unit consumed Communities anticipating Internet business growth need to accelerate timeframes with permitting and power capacity What we need within 6-12 months: Large capacity electrical circuits Lower rates due to volume and load factor Regular sales and service representatives who are knowledgeable and attentive to our business needs Quick turnarounds on engineering studies and order processing Partners and consortiums to engineer new solutions Green solutions 26 http://www.equinix.com Thank You For Your Time Questions? 27 http://www.equinix.com 5