Episode 45 - Construction and resilience amid power instability with Neal Kalita, NTT GDC
Nov 30, 2023
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Neal Kalita discusses obstacles facing data center construction in Europe, including erratic power availability and the need for renewable energy. The conversation explores the power impact of AI, energy usage of crypto mining, and the mindset shift in the data center industry towards sustainability. Also discussed are the importance of smart grids and regulations for sustainable infrastructures.
Chronic underinvestment in power infrastructure and the low carbon transition pose challenges for data center construction in Europe, necessitating engagement with communities and stakeholders.
The German data center law serves as a model for upcoming regulations, highlighting the need to address environmental impact and enforce compliance while considering the impact on data center development and location choices.
Deep dives
Pressure on Power Networks in Europe
The low carbon transition, including the shift to renewables and electrification of heat and transport, is putting significant pressure on power networks in Europe. Chronic underinvestment in infrastructure and network operators has exacerbated the issue. Legislation, such as the German energy efficiency law, is pushing for a social contract that includes heat reuse and transparent reporting of energy utilization. Environmental factors like ambient temperatures and weather patterns pose additional challenges for reducing Power Usage Effectiveness (PUE). Building larger data centers and engaging with communities and wider stakeholders are crucial for addressing these power network challenges.
German Data Center Law and European Energy Efficiency Directive
The German data center law, which implements the European energy efficiency directive, serves as an example for upcoming regulations. The legislation is a response to the increasing power demands of data centers and aims to regulate their environmental impact. However, there are concerns about the completeness and nuances of the law. Policymakers must consider how to enforce compliance and establish penalties. Other European countries and the EU will likely observe and learn from the German experience to develop their own suitable legislation. The impact of regulations on data center development and location choices is a crucial point of interest.
Transparency, Credibility, and Building Design
The data center industry needs to improve transparency and communication to address concerns from communities and gain wider appreciation for its role in the digital economy. Emphasizing the value of digital infrastructure enables a better understanding of the importance of data centers. Designing data centers with aesthetically pleasing forms that support or inspire can positively impact public perception. Additionally, focusing on operational optimization, utilization planning, and utilizing breakthrough technologies can help reduce environmental footprints and enhance the credibility of the industry.
Smart Infrastructure Integration and AI Optimization
The integration of smart infrastructure, including smart grids and data centers, can contribute to the development of smart cities. Data centers can act as nodes within an energy operating system, optimizing power consumption and supporting a smart city's operations. Artificial Intelligence (AI) can assist in optimizing data center operations and power usage. AI's potential extends to improving performance and reducing energy footprints across multiple interconnected data centers, facilitating the scaling of energy optimizations. Collaboration between data centers, grid operators, and regulators is crucial for realizing the full potential of smart infrastructure and AI optimization.
The European data center market has a forecasted take-up of 440MW for 2023. But within the context of erratic power availability, moratoriums, and the need to move to renewable energy, the FLAP-D markets are facing several challenges.
In this episode we talk to Neal Kalita about the obstacles facing those looking to build in Europe, and what the future holds for the region.
Tune in for the conversation where we find the solution to keeping up with the pace of demand while prioritizing sustainability.
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