Presentation at DCD Converged, London, Nov 19, 2015. Tomas Sokolnicki, Business Sweden & Vince van Son, Facebook. Nordics as a location for data centers.

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

2. 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

3. THE NORDICS
23 NOVEMBER, 2015BUSINESS SWEDEN 3

4. BUSINESS SWEDEN 23 NOVEMBER, 2015 4
THE NORDICS – A QUAINT CORNER OF EUROPE

5. 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

6. NORDICS VS EUROPE
BUSINESS SWEDEN 23 NOVEMBER, 2015 6
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

7. BUSINESS SWEDEN 23 NOVEMBER, 2015 7
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
20192014

8. THE DATACENTER SCENE
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9. 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

10. 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.

11. THE ENERGY SCENE
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12. A QUEST FOR THREE KEY ATTRIBUTES
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SECURING A DATA CENTER ENERGY SUPPLY
SOLUTION
Environmental
Footprint
Cost
Reliability

13. LOCATION, LOCATION, LOCATION
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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

14. BUSINESS SWEDEN 23 NOVEMBER, 2015 14
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)

15. 84% OF NORDIC GENERATION PRODUCED NO CO2
BUSINESS SWEDEN 23 NOVEMBER, 2015 15
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

16. SUPPLY FROM WIND ENERGY IS GROWING RAPIDLY AND WILL FAR EXCEED
RETIREMENTS
BUSINESS SWEDEN 23 NOVEMBER, 2015 16
ENERGY SUPPLY
SOURCE: VATTENFALL
TWh
Nordic Wind Energy Generation (TWh)
2025
2024
2023
2022
2021
2014
2013
2012
2011
2010
2009
2008
2007
2006
2020
2019
2018
2017
2016
2015
Historic
Finland
Norway
Denmark
SwedenType SE DK FI NO Total
Wind 13.0 8.7 6.0 6.1 33.8
Hydro 0.0
Nuclear -9.5 12.0 2.5
Nat. Gas (CHP) -1.9 0.7 -1.2
Biofuel (CHP) 2.0 2.0
Coal -1.0 -2.9 -2.1 -6.0
Total 4.5 3.9 15.9 6.8 31.1
Change in Generation in Nordics 2015-2024 (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 4
5
5 6 6 7
8
8
12
13
14
16
17
18
18
19
20
20
21
14
15
16
18
19
21
22
23
24
25
26
32
0
5
10
15
20
25
30
35
40
45
50
55
60
65

17. BUSINESS SWEDEN 23 NOVEMBER, 2015 17
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

18. WHOLESALE ENERGY PRICES FOR SUBSEQUENT YEAR HAVE FALLEN
BUSINESS SWEDEN 23 NOVEMBER, 2015 18
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

19. THE CONNECTIVITY &
FIBRE SCENE
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22. 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
NORDICS - FIBRE SITUATION CLOSE-UP
Cinia Group ”Sea Lion”

23. 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
EURO-IX,NETNOD,INDUSTRYSOURCES
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
Gbps

24. BUSINESS SWEDEN 23 NOVEMBER, 2015 24
LATENCY SEATTLE – MIAMI: 87 MS. HELSINKI – GIBRALTAR: 72 MS
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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….

25. ROUNDTRIP DELAY, MS
BUSINESS SWEDEN 23 NOVEMBER, 2015 25
…BUT ALSO ABOUT NETWORK TOPOLOGY,
APPLICATIONS & BUSINESS NEEDS
SOURCE: WONDERNETWORK.COM
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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?”

26. BUSINESS SWEDEN 23 NOVEMBER, 2015 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
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
Country Highest Lowest Avg
USA 3.80 1.40 3.37
Country Highest Lowest Avg
Ireland 3.33 2.02 3.08

27. BUSINESS SWEDEN 23 NOVEMBER, 2015 27
”OBJECTS IN MIRROR ARE CLOSER THAN THEY APPEAR”

28. SUMMING UP
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29. 23 NOVEMBER, 2015 29
THE NORDIC
”PORTFOLIO”

30. BUSINESS SWEDEN 23 NOVEMBER, 2015 30
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

31. 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
BUSINESS SWEDEN 23 NOVEMBER, 2015 31
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
40
Corp Tax (nominal)
“It’s all about short time-
to-market. We want to
avoid risks, and hate
un-expected costs!”

32. BUSINESS SWEDEN 23 NOVEMBER, 2015 32
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

33. THANK YOU!
23 NOVEMBER, 2015BUSINESS SWEDEN 33