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Blue Skies with Green Clouds - Business Sweden + Facebook, Nov 19

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

Published in: Technology
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Blue Skies with Green Clouds - Business Sweden + Facebook, Nov 19

  1. 1. BLUE SKIES WITH GREEN CLOUDS - LIGHTING UP THE NORDIC DATACENTER SCENE TOMAS SOKOLNICKI VINCE VAN SON BUSINESS SWEDEN FACEBOOK
  2. 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. 3. THE NORDICS 23 NOVEMBER, 2015BUSINESS SWEDEN 3
  4. 4. BUSINESS SWEDEN 23 NOVEMBER, 2015 4 THE NORDICS – A QUAINT CORNER OF EUROPE
  5. 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. 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. 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. 8. THE DATACENTER SCENE 23 NOVEMBER, 2015BUSINESS SWEDEN 8
  9. 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. 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. 11. THE ENERGY SCENE 23 NOVEMBER, 2015BUSINESS SWEDEN 11
  12. 12. A QUEST FOR THREE KEY ATTRIBUTES BUSINESS SWEDEN 23 NOVEMBER, 2015 12 SECURING A DATA CENTER ENERGY SUPPLY SOLUTION Environmental Footprint Cost Reliability
  13. 13. LOCATION, LOCATION, LOCATION BUSINESS SWEDEN 23 NOVEMBER, 2015 13 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. 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. 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. 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. 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. 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. 19. THE CONNECTIVITY & FIBRE SCENE 23 NOVEMBER, 2015BUSINESS SWEDEN 19
  20. 20. BUSINESS SWEDEN 23 NOVEMBER, 2015 20
  21. 21. BUSINESS SWEDEN 23 NOVEMBER, 2015 21
  22. 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. 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. 24. BUSINESS SWEDEN 23 NOVEMBER, 2015 24 LATENCY SEATTLE – MIAMI: 87 MS. HELSINKI – GIBRALTAR: 72 MS BUSINESS SWEDEN 23 NOVEMBER, 2015 24 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. 25. ROUNDTRIP DELAY, MS BUSINESS SWEDEN 23 NOVEMBER, 2015 25 …BUT ALSO ABOUT NETWORK TOPOLOGY, APPLICATIONS & BUSINESS NEEDS SOURCE: WONDERNETWORK.COM BUSINESS SWEDEN 23 NOVEMBER, 2015 25 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. 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. 27. BUSINESS SWEDEN 23 NOVEMBER, 2015 27 ”OBJECTS IN MIRROR ARE CLOSER THAN THEY APPEAR”
  28. 28. SUMMING UP 23 NOVEMBER, 2015BUSINESS SWEDEN 28
  29. 29. 23 NOVEMBER, 2015 29 THE NORDIC ”PORTFOLIO”
  30. 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. 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. 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. 33. THANK YOU! 23 NOVEMBER, 2015BUSINESS SWEDEN 33

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