blue skies with green clouds - business sweden + facebook, nov 19

BLUE SKIES WITH GREEN CLOUDS -

LIGHTING UP THE NORDIC DATACENTER SCENE

TOMAS SOKOLNICKI VINCE VAN SON

BUSINESS SWEDEN FACEBOOK

BUSINESS SWEDEN 23 NOVEMBER, 2015 2

OUTLINE & BACKGROUND

1. A few words on the Nordics

2. Data center scene

3. Energy scene

4. Connectivity scene

5. Summing up

THE NORDICS

23 NOVEMBER, 2015 BUSINESS SWEDEN 3


THE NORDICS – A QUAINT CORNER OF EUROPE

tradingeconomics.com, Innovation Union Scoreboard 2015

SWEDEN

DENMARK

NORWAY

FINLAND

ICELAND 10% of

Western

Europe’s

GDP

25 million

people

“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

2012.”

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.

TOGETHER, THE WORLD’S 12TH

LARGEST MARKET

..AND AMONG THE MOST INNOVATIVE & CONNECTED

EU Innovation Performance

NORDICS VS EUROPE


THE NORDICS – DISPROPORTIONATE ON TECH,

VENTURE CAPITAL & OLYMPIC MEDALS!

COPYRIGHT CREANDUM. SOURCES: EVCA, THOMPSON, DOW JONES, CREANDUM, TRUFFLE, DELOITTE, INTERNATIONAL OLYMPIC COMMITTEE.

* INCLUDES ALL GOLD MEDALS BETWEEN 1896-2010 FOR EXISTING AND PREVIOUS EUROPEAN COUNTRIES


GROWTH IN TRAFFIC DRIVES NEED TO SCALE

DIGITAL INFRASTRUCTURE

CISCO CLOUD INDEX REPORT 2015

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

4x

3x

1,4x

2019 2014

THE DATACENTER SCENE


SWEDEN

ICELAND

Stockholm

Helsinki

Oslo

Reykjavik

NORWAY

DENMARK

Copenhagen

* Public sources, illustrative only. Logotypes may not be correctly depicted.

FINLAND

PRE-2007 – ORGANIC MARKET

FEW (IF ANY) DATACENTERS OVER 3 MW

SWEDEN

ICELAND

Stockholm

Helsinki

Oslo

Reykjavik

2015 – PROVEN GROUND FOR WEBSCALE

NORWAY

DENMARK

Copenhagen

FINLAND

Public sources, illustrative only. Logotypes may not be correctly depicted.

THE ENERGY SCENE


A QUEST FOR THREE KEY ATTRIBUTES


SECURING A DATA CENTER ENERGY SUPPLY

SOLUTION

Environmental

Footprint

Cost

Reliability

LOCATION, LOCATION, LOCATION


RELABILITY BEGINS WITH INFRASTRUCTURE

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


OVERALL STATISTICS ARE INTERESTING BUT SITE

SPECIFIC GRID EVENT DATA IS REQUIRED

Average Interruption

Time (Minutes/Year) for

Customers Connected

to Distribution Networks

0 100 200

SOURCE: CEER (12 FEB 2015) AND ENTSO -NORDIC AND BALTIC GRID DISTURBANCE STATISTICS 2014 (21 OCT 2015)

84% OF NORDIC GENERATION PRODUCED NO CO2


SMALL ENVIRONMENTAL FOOTPRINT

SOURCE: IEA, SWEDENERGY, FINGRID, DANISH ENERGY

Country

/Region

2013

g CO2

/kWh

Norway 5

Sweden 20

Finland 300

Denmark 475

Nordic 100

EU 450

Generation from renewable energy sources is ≈ 62% in Nordics and ≈ 22% in EU

55%Hydro

7%Wind

22%Nuclear

17%Thermal

Hydro

Wind

Solar

Nuclear

Thermal

42%

96%

20%

8%

0.0

2%

43%

41%

35%

2%

9%

4%

43%

55%

0

20

40

60

80

100

120

140

160

SE NO FI DK

Thermal

Nuclear

Solar

Wind

Hydro

Total Nordic Generation (2014)

389 TWh

TWh

SUPPLY FROM WIND ENERGY IS GROWING RAPIDLY AND WILL FAR EXCEED RETIREMENTS


ENERGY SUPPLY

SOURCE: VATTENFALL

TWh Nordic Wind Energy Generation (TWh)

20

25

20

24

20

23

20

22

20

21

20

14

20

13

20

12

20

11

20

10

20

09

20

08

20

07

20

06

20

20

20

19

20

18

20

17

20

16

20

15

Historic Finland Norway Denmark Sweden Type SE DK FI NO Total

Wind 13.0 8.7 6.0 6.1 33.8Hydro 0.0Nuclear -9.5 12.0 2.5Nat.Gas(CHP) -1.9 0.7 -1.2Biofuel(CHP) 2.0 2.0Coal -1.0 -2.9 -2.1 -6.0

Total 4.5 3.9 15.9 6.8 31.1

ChangeinGenerationinNordics2015-2024(TWh)

Annual wind energy production

added to the Nordics in the next

ten years is approximately equal

to the total annual energy

consumption of Denmark 4 4 5 6 6 6 7 8 92 3 4 45

5 6 6 78

812

1314

1617

1818

1920

20

21

14

15

16

18

19

2122

23

24

25

26

320

5

10

15

20

25

30

35

40

45

50

55

60

65


AVERAGE ENERGY DEMAND OVER 1 GW LESS

THAN A DECADE AGO

SOURCE: SCB FOR ACTUAL CONSUMPTION, VATTENFALL FOR TEMPERATURE CORRECTION AND E-BOILER ADJUSTMENT

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

WHOLESALE ENERGY PRICES FOR SUBSEQUENT YEAR HAVE FALLEN


ENERGY MARKET CURRENTLY FAVORS BUYERS

SOURCE: EEX, NORDPOOL

Front Year Price

(EUR/MWh)

for Base Load

Emissions

trading

introduced

Low hydro

balance

CO2 price

collapsed

High fuel

prices Economic crisis, low

industrial demand

Low hydro

balance,

nuclear

refurbishment Fukushima

NorNed

Cable

online

BritNed

Cable

online

More and more

Renewables, dropping

CO2 prices, lower

demand

Belgian

Nuclear

outages

THE CONNECTIVITY &

FIBRE SCENE


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

BUSINESS SWEDEN 23 NOVEMBER, 2015

22

NORDICS - FIBRE SITUATION CLOSE-UP

Cinia Group ”Sea Lion”

11X – 13X GROWTH SINCE 2007

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, 2015 23

TRAFFIC GROWTH & CONNECTIVITY

EU

RO

-IX

, N

ET

NO

D, IN

DU

ST

RY

SO

UR

CE

S

0

2000

4000

6000

8000

10000

12000

14000

16000

07 08 09 10 11 12 13 14

Euro-IX, Average

aggregated peak

traffic per year

Gb

ps


LATENCY SEATTLE – MIAMI: 87 MS. HELSINKI – GIBRALTAR: 72 MS


3600 km

Madrid

Moscow

Helsinki

1000 km

Seattle

1200 km New York 4600 km

San Francisco

Seattle – New York 4600 km / 67 ms

Helsinki – Madrid 3600 km / 52 ms

Distance / Roundtrip delay

Madrid

Milan

7 ms

Stockholm – Frankfurt 29 ms

but

Johannesburg – Stockholm 203 ms

Johannesburg – Frankfurt 196 ms

ROUNDTRIP DELAY, MS

LATENCY IS ALL ABOUT DISTANCE….

ROUNDTRIP DELAY, MS


…BUT ALSO ABOUT NETWORK TOPOLOGY,

APPLICATIONS & BUSINESS NEEDS

SOURCE: WONDERNETWORK.COM


SWEDEN FINLAND

NORWAY

ICELAND

DENMARK

Stockholm

Helsinki

Oslo

Copenhagen

Reykjavik

Moscow

St Petersburg

Warszawa

Paris

Frankfurt

Kiev

Minsk

Istanbul

Belgrade

Amsterdam London

Helsinki – Istanbul 78 ms

Stockholm – Moscow 26 ms

Stockholm – Kiev 35 ms

Oslo – Milan 45 ms

Dublin

2007

Tech-risk-driven latency

requirements

”25 ms delay is better than 27!”

2015

Balancing business – application -

cost

”What is good enough for us?”


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

Denmark 4.16 3.65 3.94

Finland 3.70 3.42 3.52

Norway 4.06 3.48 3.87

Sweden 4.17 3.23 3.94


USA 3.80 1.40 3.37


Ireland 3.33 2.02 3.08


”OBJECTS IN MIRROR ARE CLOSER THAN THEY APPEAR”

SUMMING UP


23 NOVEMBER, 2015 29

THE NORDIC

”PORTFOLIO”


DATACENTER COMPANIES PUSHING DESIGN

BOUNDARIES IN THE NORDICS

Structural capital

Climate

Pioneering district heating & cooling

networks

Robust electricity infrastructure

History of energy intensive industry

with critical reliability needs

Sea water, district

cooling, ground-

based, geothermal

Removing

gen-sets

Modular, aero-

dynamics, ’moon

base’, wood

Rock-shelters,

printing facilities,

paper mill

Since the 70’s

now going fully

commercial

Cooling

Design innovation

Heat re-use

Grid

Facility re-use

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


SITE DEVELOPMENT & CONSTRUCTION

SOURCES: INTERVIEWS, UPPLANDS-VÄSBY MUNICIPALITY

“..it only took two weeks before we

had our decision, we’ve never seen

that before!” (Digiplex)

Need in some markets to sign

contract in advance, paying a

premium for a few years

Eg electricity cable cheaper in

Nordics!

0

10

20

30

40Corp Tax (nominal)

“It’s all about short time-

to-market. We want to

avoid risks, and hate

un-expected costs!”


TOWARDS 2020

Differences between the

best sites are shrinking

Shorter time to certainty of

cost, risk & schedule

• 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

THANK YOU!
