Energy and Data and Their Co-Dependent Demands on CIO’s: New Report by Northbridge Energy Partners
“Mind the Gap: Energy Availability and the Disconnect with Data”
highlights the growing gap between the energy requirements to fuel a
data-driven economy and power grid capabilities
Data and power are on a potential collision course according to a new
report released by Peter Kelly-Detwiler of Northbridge
Energy Partners. The
report examines the disconnect between power grid
availability in the US, UK, and Europe and the growing demand for power
from the increasingly data-driven economies around the world. Mind
the Gap: Energy Availability and the Disconnect with Data, addresses
the pressures on the CIO to harness the exponential growth in data with
the realities of today’s power grids. Many of these grids are
functioning on aging infrastructures, face increasing reliability
issues, cost pressures and a mandate to decarbonize electricity supply
resources.
“In the search for low-cost and reliable power supplies, the CIO is
often involved in a search at the global level,” commented
Kelly-Detwiler. “Unfortunately, many of the power grids up for
consideration may not meet the stringent requirements for reliability,
as electricity demand growth in many developed countries has outstripped
the infrastructure necessary to keep up. The U.K., continental Europe,
and the U.S. all face challenges unique to each area, while the Nordic
economies, Iceland, and Quebec fare significantly better.”
Key considerations outlined in the report include:
-
Processing large data sets to extract useful information will drive
continued growth in data centers which can both store and process
data, and lead to an ever larger number of supercomputer data centers
as well as high performance computers (HPCs). An increasing amount of
processing and analysis will happen in real-time (or close to
real-time), particularly in industries where the data become useless
if not analyzed and acted upon immediately.
-
As both the quantity of the data and the value of processing that data
quickly increases in the coming years, downtime will be even more
costly. This further reinforces the fact that the reliability of the
power grid will become an increasingly important element to consider
in data center siting considerations.
-
Growing datacenter efficiencies are unlikely to keep pace with the
surging demand for data storage, analytics, and information. As a
result, overall energy use of data centers will grow. Data centers
already represent one of the fastest growing users of electricity in
the world. Globally, it is estimated that nearly 3 percent of all
electricity use is dedicated to some kind of data center, an increase
of 100 percent over the past five years.
-
It is estimated that in the U.S. alone, 2013 power use for data
centers was equivalent to the output of about thirty-four 500 MW
power plants, or twice . the use of all households in New York
City. That number is forecasted to increase by almost 60 percent
by 2020.
-
Globally, the energy used to support the Internet and our
data-rich economy is equivalent to the power consumption of a
country somewhere in size between Italy and Spain.
-
That growth will continue: A recent study projects that in just
the next four years, the Internet of Things (IoT) will require 750
percent more data center capacity in service-provider facilities
than is currently being used.
-
Data centers are putting more stress on an already brittle power
system. The questions to be answered are not only “Will there be
enough electricity?” but “Will it be there when my data center needs
it?"
CIOs looking at outsourcing to data centers should include adequacy of
electricity resources as part of the decision-making process. The
questions then become about the power source, reliability, scalability
and cost of operations.
-
Power reliability is critical, since the cost of outages can be
crippling. Some grids are more reliable than others. When choosing
data center locations, grid reliability should be one of the factors
considered.
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All electric grids are not created equal:
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The UK is reportedly at capacity for the immediate future with
limited generating resources and flexibility;
-
Germany is in transition with regulatory uncertainty
-
The U.S. increasingly struggles with an aging infrastructure and
reliability issues in some parts of the country.
-
By contrast, the Nordic countries (including Iceland), enjoy an
abundance of renewable resources and reliable power grids. The
province of Quebec is similarly blessed. In the context of a
20-year investment in siting a data center, these reliability
issues cannot be ignored.
To download a free copy of the report commissioned by Verne Global,
please visit: http://verneglobal.com/resources.
About Northbridge Energy Partners
The electricity grid is evolving. Power markets are volatile, fragmented
and constantly changing due to regulatory, legislative and energy policy
activities, and the rapid mainstreaming of new technologies. Northbridge
Energy Partners, LLC helps clients recognize, prepare for, and benefit
from opportunities as they position themselves and their technologies
according to market dynamics, customers’ needs and competition. For more
information, visit: http://www.northbridgeep.com/.
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Copyright Business Wire 2015
Source: Business Wire
(December 21, 2015 - 5:30 AM EST)
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