News from Verne Global

Datacenter Dynamics2013, March 4th

I am writing this blog from 36,000 ft above Scotland, en-route to Iceland, where I am about to revisit a bit of my own past and relish in how one of the oldest resources in the world is helping drive a highly modern industry in Iceland. It is something Iceland’s investment board, Invest Iceland, clearly wants to exploit and for good reason (more about that following my tour, sponsored by Invest Iceland).

For the next four days I will be shuttled around from data center to geothermal power plant – the tour focusses heavily on these two areas. And it is not surprising. A number of new data centers – including Verne Global- have opened in Iceland in recent years, and their number one sell is low cost made possible by Iceland’s abundant geothermal energy, which is fed into the grid.

Flying out from the UK – where I am based – I am all too aware that power costs can be a large hindrance to those wanting to operate in the country. And while the government has been quite clear that the country needs to find new ways to generate power, it has focussed more on the benefits of nuclear than any other alternative source from gas or coal-fired power. A report released in the last few days actually highlighted the UK’s support for nuclear energy. Minister of State for Energy John Hayes welcomed its support, which comes at a time when five companies are already building nuclear plants across the country.

“The Government is determined to see new nuclear play a role in our future energy mix, as it does today. We are working to make the UK one of the most attractive places in the world to invest in new nuclear,” Hayes said.

This is not to say the UK government has never considered using geothermal power. It went in search of opportunities in response to the 1973 oil crisis then gave up interest when petroleum prices fell. It did so again in the 1980s, looking at potential geothermal aquifers in the UK but gave up when it found one well drilled was too small to be commercially viable. (That well now provides district heating for a civic center and shopping center and some other city center buildings in Wessex.)

This does not mean the UK has no potential for geothermal energy. The North Sea has been listed as a possible resource and has Hot Dry Rock technology could provide even more potential.

In fact, a report by the Guardian newspaper in the UK said the UK could actually meet a fifth of its power needs by exploiting geothermal power, but not enough incentive was actually offered for such projects to exist – wave and tidal projects receive more government backing in the UK.

Part of the problem lies in the cost of drilling for geothermal energy, and the cost of pumping water to the underground rocks, an act which can bring about seismic activity.

Investing in geothermal

I also wonder how much of the problem lies in what already exists in relation to energy infrastructure? This seems to be a key talking point in Africa, where geothermal is now said to hold some promise, for both its industry and for its overall economic development.

Reports from Africa suggest the continent has 14,000MW potential of geothermal energy. And because much of the continent is still not even on the electrical grid, there exists an opportunity to set up micro grids, which allows energy to be generated in smaller plants – quite unlike the model used currently in the UK.

This model means energy can be produced closer to its source, with solar energy and wind energy supplementing the supply chain when populations are not nearby. It also means less can be lost during the transmission of the energy to its user.

The World Bank and the Development Bank of Ethiopia are now offering US$20m to help fund energy projects to help tap into Ethiopia’s geothermal potential, and it expects to offer a further $20m later on. Funnily enough, a British company has been shortlisted to build Ethiopia’s first geothermal energy plant – Cluff Geothermal.

It told The Guardian the government there is currently working out regulations around the space, with a framework expected in the next six months.

This is where my past comes into this blog. I used to edit an energy title, along with a number of other technology publications. I have attended numerous energy events, including the World Energy Congress in Rome in 2007 – the first event at which admissions seemed to stick that the world was running out of energy.

Solar, at this event, was pushed heavily. Wind, to a degree. And hydrocarbons, well they seemed to be the real flavour of that year. But much still appears to need to be done in each of these spaces to harness the real potential. Back then little was actually said about geothermal.

Someone recently asked our LinkedIn group for use cases for geothermal energy in the data center. There seem to be a few interesting case studies out there but also a fear that the technology is still maybe not up to the task.

But despite the challenges, Iceland seems to base a lot of its future on its geothermal power. And I am quite interested in seeing how it harnessed this, and the technological challenges it had to overcome along the way. The UK may not have opportunities as large as Iceland’s – or even Africa’s – but it will be interesting to talk with Verne, which has its own substation, to find out just how big an opportunity, in relation to geothermal energy, has to be to really make it worthwhile in the first place. And how much investment could be needed to make geothermal a reality elsewhere.

As Iceland’s catch cry says: Why burn coal when you have fire.

Press Release2013, February 28th

Colt’s ftec data centre solution enables Verne Global to tightly scale capacity with business growth

London, 28 February, 2013 — Colt, Europe’s leading information delivery platform, today announced that Verne Global, a developer of power conscious data centre campuses, has selected Colt’s ftec data centre for an expansion of its 100 percent dual-sourced, renewable energy facility in Keflavik, Iceland. As more governments, private companies and public organisations look for ways to minimize their power consumption and carbon footprint, the additional Colt ftec data centre space will enable Verne Global to continue to meet increasing demand for more energy efficient, cost effective and environmentally sustainable data centre solutions.

Fabricated at Colt’s manufacturing facility in Northern England, the data centre modules will be shipped to Iceland in May and assembled onsite ready to go live at the end of Junein Q3.

“As cloud, mobile and big data applications drive organisations to look for cutting edge solutions for their data storage needs, interest in our Icelandic facility continues to gain momentum and we find ourselves needing to expand our current footprint,” said Jeff Monroe, CEO for Verne Global. “Our partnership with Colt allows for flexible and rapid expansion of our business with a superior product that meets our specific requirements.”

“By putting flexibility right at the heart of our data centres both in the design phase and throughout the life cycle, we achieve market-leading cost savings for customers in terms of energy efficiency and an unrivalled time to market of less than four months.” Said Guy Ruddock, Vice President of Design and Delivery for Colt. “In the case of Verne Global’s campus, we’ve specifically customised our design to fully harness Iceland’s fresh air cooling which is available 365 days a year. This, coupled with the unique 100 percent renewable, dual sourced power supplying the data centre hall, provides industry leading efficiency and reliability.”

Ruddock adds: “In many respects, our approach can be likened to purchasing a new computer. Once we determine the user’s exact requirements, we build a tailored solution based on a combination of standardised architecture, proven modular components and options for dynamic scalability in terms of space, cooling and power requirements. The result is a data centre that matches or exceeds the durability and quality standards of a traditional build but is ready for work in a fraction of the time.”

Verne Global’s data centre campus is strategically located so its customers benefit from Iceland’s unique power sources of 100 percent geothermal and hydroelectric power. The Colt ftec data centre is built in a modular way with steel frame and the use of standardised, right-sized components minimises waste and makes the data centre layout as efficient as possible. The materials used in the data centre can be recycled at end of life.

The Data Center Journal2013, February 6th

This week, Industry Perspective asks Lisa Rhodes about the relevance of energy efficiency and renewable energy sources for data center operators. Lisa is vice president of marketing and sales for Verne Global, a data center company that owns and operates a facility in Keflavik, Iceland.

Industry Perspective: How critical are energy-efficiency measures to the average data center?

Lisa Rhodes: With data centers consuming more than 1.5% of total electricity usage worldwide and data center carbon emissions set to quadruple by 2020, according to the EPA, energy efficiency is a critical issue for any data center operator. Key factors contributing to this rise include

All of these factors combined have led to a point where greening the data center is now a must-have and no longer a nice-to-have.

• Escalating demand for computing resources: there are over 2.4 billion Internet users worldwide, and that number is expected to grow by 8% for the next few years.
   
• Increasing amounts of energy needed for data center power and cooling requirements: in 2012, Gartner reported that energy-related costs account for nearly 12% of the overall data center expenditure, and it’s the fastest-rising cost in the data center campus.
   
• Global rising energy costs: Ernst & Young published a survey in September that found 38% of global executives expect energy costs to rise by 15% or more in the next five years. The report also found that 42 of respondents spend at least $50 million annually on energy expenses and another 27% spend in excess of $100 million annually.

All of these factors combined have led to a point where greening the data center is now a must-have and no longer a nice-to-have.

IP: What kinds of environmental regulations are having the greatest effect on data centers, and what might be on the horizon?

LR: In the last few years, the United Kingdom and United States have both tried to address this issue with initiatives and proposals designed to combat the carbon emissions brought on by fossil-fuel-powered data centers. Britain’s CRC Energy Efficiency Scheme, formerly the Carbon Reduction Commitment, has estimated that the Scheme will reduce carbon emissions by over one million tons per year by 2020. The Scheme aims to encourage organizations that are responsible for 10% of the U.K.’s emissions to develop energy-management strategies that provide better understanding of energy usage. The broader European Commission also established a Code of Conduct on Data Centres’ Energy Efficiency. Designed to drive data center infrastructure efficiency from 50% or less across most European data center campuses to the 80% range, the Code of Conduct primarily focused on voluntary compliance measures that could possibly lead to legislation down the road.

In the U.S., President Obama recently made headlines with an emphasis on climate change during his second Inaugural Address. Starting this month, policy-forum meetings are getting underway to discuss how renewable energy can be a key component of economic growth in the United States. Policymakers and businesses will come together to make recommendations on tax incentives and energy policy for the U.S. renewable-energy market in 2013.

IP: Is reliance on renewable energy sources feasible for most data centers?

LR: One of the trends that we are seeing across the technology industry as a whole is how data centers no longer need to be tethered to the population centers that they serve. Companies are empowered to segment their business applications and choose platforms that match technical, financial and sustainability goals for each business application. The tragedy of Hurricane Sandy really highlighted that a place like New York, although close to a population center, is not an always an ideal location for the critical equipment that data centers use to deliver services. Companies now have the option of having data stored in multiple locations, which means they are able to take advantage of locations where better and more-abundant renewable energy resources are available.

IP: What is the energy mix for Verne Global’s Iceland data center?

LR: Verne Global runs off of Iceland’s power grid, which is 100% powered by renewable geothermal and hydroelectric energy resources.

IP: What can data centers in more moderate climates learn from Verne Global’s data center?

LR: Verne Global’s data center campus has definitely been a pioneering effort, and we have learned some key lessons that can be applicable to the rest of the industry. Every data center, for example, houses applications that can be located outside of Tier 1 cities. These can be applications high in power consumption, applications low in network latency needs or even backup recovery that doesn’t need to be in a location that requires paying a premium for power costs. With cloud computing and virtualization driving so many IT business decisions today, it is important for data center managers to map out the flexibility of their applications and make smart choices about where they can be located. They may be surprised to find that nontraditional sites can be the right decision for their business needs.

Data Center Knowledge2013, January 16th

The threat of losing power is among the top stressors for industries such as data centers, hospitals and universities. It’s never a good moment when operators get the dreaded phone call saying power has been lost; unfortunately, it seems as though it’s starting to happen more frequently than ever.

According to CNN, over 140 million customers rely on the three interlinked sectors of the more than 3,200 electric distribution utilities, 10,000+ generating units and tens of thousands of miles of transmissions that make up the United States’ power grid. With an average of nearly 500,000 people affected daily by U.S power outages, it is safe to say that the power grid is reaching its capacity and weakening with the age and declining infrastructure as its main culprits. Experts are worried and it’s with good reason. With the yearly costs of U.S. outages running into the billions, the unease and unpredictability of the infrastructure as well as the lack of physical security, has caused some uncertainty among large-scale power users, such as data centers. As a result, data centers are being force to think outside of the box and become innovative with alternative power sources.

In the past year alone, there have been documented instances, such as with Superstorm Sandy, where the power grid weaknesses were exposed or where officials, such as those in Texas, stepped in to prevent a possible blackout. As a result, several industries, including data centers, were forced to limit or shut down operations, causing massive problems from customers and the public. As one of the largest energy consumers, data centers are among the first to feel the pressure of a waning grid. From lack of connectivity to generator failures and everything in between, the aging power grid is threatening to hurt the data center industry in more ways than one.

Aging Power Infrastructure

The original power grid pathways—similar to a highway system—were built in the early 20th century. Additionally, many utility companies have structures that have been running for 50 to 70 years. Unfortunately, the infrastructure age is causing further problems to the weakening grid. When first built, the lines were adequate; however, as time has progressed there are multiple areas of weakness that have started to show up, causing the uncertainty.

At the current rate the grid is falling, the existing competencies won’t be able to stand up to the future needs without a billion dollar price tag to make the necessary upgrades possible. By pushing systems harder than they’ve been pushed before, the grid can be held accountable for several blackouts in the previous decade- including the infamous 2003 northeastern blackout and the most recent Superstorm Sandy.

According to a report from Mary Meeker, there are over 2.4 billion Internet users worldwide with the number expected to increase 8 percent yearly. In the United States alone, the number of users is over 244 million with a projected 3 percent yearly increase. With the rapid growth in the coming years, data center operators are under increasing pressure to ensure their facilities stay online. Customers demand the ability to access data at any given time and campuses can’t let them down due to power failure. For example, campuses in the Tri-State area went on high alert for preparedness when Sandy hit; however nothing could assist them when their servers, generators and other critical powering devices failed as a result of the utility power loss. Throughout the storm, companies lost the ability to access mission critical documents and popular news websites were down; all of which had data center managers scrambling for solutions. Nearly two months after the storm and Ellis Island is still suffering without power, causing nearly all its historical artifacts to be removed and kept in safe keeping.

Another concern of the power grid comes from the lack of security. Just recently it was revealed that the energy grid has become vulnerable to attack. Coming from the recent declassification of a 2007 report from the National Academy of Sciences, the lack of a physical security has experts worried. Although the United States Federal Energy Regulatory Commission (FERC) has been assigned with creating a new security strategy through its nearly created office of Energy Infrastructure Security, the threat still exists. If attacked, experts warn that the power grid could suffer more damage than it did during Superstorm Sandy with the possibility of massive blackouts lasting weeks or even months at a time.

While this knowledge has likely cause operators additional stress, one way to help alleviate the burden is to look at renewable resources— such as hydro, geothermal, solar and wind—for power. By using renewable resources, operators can take extra precaution to protect their campuses from future security risks regarding power sources. If hackers attack the power grid, operators will have a peace of mind knowing they can continue operations thanks to the innovative power supply.

New Power Options

To help alleviate the strain on the power grid, data center operators are finding new ways to gather power. As the risks increase, no longer can they rely solely on the power of their host country and supplemental power is becoming vital. With demand for energy at an all-time high it’s crucial to ensure the power stays on even as the grid stretches to capacity. As a result of the pressure from the weakening grid, data centers have begun to utilize renewable resources harvested from their surroundings.

According to the National Renewable Energy Laboratory, data centers across the country can utilize renewable energy technologies, but some technology solutions are better suited for select geographical locations. Although the United States offers suitable locations, some companies have started venturing outside their home countries for stronger solutions. Large enterprises, such as BMW, Facebook and Google have begun to move data center operations abroad to Iceland, Sweden and Finland, respectively. Attracted by the cool climates and relatively low pricing, these artic campuses are allowing operators to harvest renewable resources from their host countries for both power and cooling.

With that, site selection plays the ultimate role in determining whether alternative technology can be accessed. As an added benefit, by gathering energy from the host country via renewables, data centers can control pricing and lower customer’s carbon footprint. Facebook’s facility in Sweden will require 70 percent less power than traditional data centers, while BMW’s move to Icelandic facility will save it around 3,600 metric tons of carbon emissions per year. Furthermore, the campuses will no longer be restricted to only utilizing their host countries power grid. Instead, their ability to gather power with renewable resources will lessen the unease and anxiety suffered by data center operators. Without being bound solely to the host countries power, data centers can remain online even if disaster strikes.

While no one expects the power grid to fail completely, high-power users can and should expect to make lasting changes to how they collect their power. By utilizing alternative technology, data center operators can rest easy knowing their systems will remain online at all times, even during storms as severe as Sandy. Though the aging infrastructure and lack of security will continue to plague the grid, operators can begin to change their responses by taking action and thinking outside the box.