Datacentered - Issue 01

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Datacentered

Colophon

TEAM DATACENTERED Publisher

Location

Dutch Data Center Association (DDA)

Dutch Data Center Association Laarderhoogtweg 18

Editor in Chief

1101 EA Amsterdam Zuid-Oost

Pim Kokke

The Netherlands

Stijn Grove

Advertisements Art Director

For inquiries about advertisements,

Sam Zondervan

please contact info@datacentered.net

Marketing & PR Zoë Derksen

Research Partner Peter Vermeulen, Pb7 Research

Contributors Daniëlle Arets, Laura Beukers, Michiel van Blommestein, Natascha Geraedts, Manuel Giménez, Joni Israeli, Merian

WE KEEP IT RUNNING. THE SPECIALIST IN DATA CENTER AND TELECOM COOLING FOR 75 YEARS.

Kruiger, João de Lima, Niek van der Pas, Cees-Jan Pen, Max Roest, Jan Willem van Roggen, Stroomkr8, Kees Verhoeven, Bart Wernaart, Michael Winterson

About Datacentered is a publication of Foundation Dutch Data Center Association and occurs four times a year. No part of this publication may be reproduced and/or disclosed by print, photocopy, film or any other means without written permission from the publisher.

Supported by: Legrand Data Center Solutions, STULZ, Stroomkr8, Eversheds Sutherland, Watts, DPR Construction, Deerns, Kirby, AP, Maunt, Kelvion, Koninklijke van Twist, Volker Energy Solutions, EkkoSense, Panduit, Kenter, Eaton, Weiss Technik, Paroc Panel System, Rittal, Moy, Supermicro, Trescal, Arcadis, Beveco, Chatsworth Products, Exagate, Workrate, R&M Europe, ABB, Mitsubishi Electric, NL-ix, Data Ports Groningen, Heijmans, Blygold., Huawei, TSL, Kohler, Elmon-Intertech, DC Pro, FNT, CBRE, Vertiv, Socomec, Royal HaskoningDHV, MarshMcLennan, 7Digits, Forehand, Coolgradient, Fluor, Alara-Lukagro, Aksa Power Generation, Rentaload, ACT Connectivity Solutions, CANS, Zwart Techniek, Dcongreen, TA Control Systems, Arup, Croonwolter&dros, Rahi Systems, Aggrekko, Georg Fischer AG, Black Box, DGMR, Turner & Townsend, Viking, Rolls Royce, Schneider Electric, RWL Advanced Solutions, SADC, FujiFilm, Schleifenbauer, Spie, First-Case, Vattenfall, KWS Infra, Unica Datacenters, Securitas, Maxicom, ATS Global, Hug Engineering, Sims Lifecycle Services, Commscope, Mace, Red Bear Tech, Danfoss, Submer, Soben, Juniper Networks, DC People, Novenco, Worldwide Services, Park Place Technologies, Johnson Controls, TÜVIT, Honeywell, Zentrys, Secior, Grundfos, Elinex, Equans, Pathema, APAC, Salute Mission Critical, All Rack, ATC, CSB Energy Solutions, Delta Electronics

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STULZ GROEP B.V. | Jacobus Ahrendlaan 3 | 2132 LP | Hoofddorp | +31 (0) 20 545 11 11 | info@stulz.nl | www.stulz-benelux.com

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Table of Contents

Table of Contents

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INTERVIEWS

EXPERT INSIGHTS

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Stijn Grove

Niek van der Pas

Manuel Giménez

The importance of facts in

The EU Green Deal: How can you

Towards a digital decarbonized

decision-making and legislation

improve if you don’t measure?

world

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148

Natascha Geraedts

João Marques de Lima

Legislation focused on

No set backs

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Geraldine Camera

Carlo Brouwer

France as Europe’s Digital Bridge

Shaping the Future of Data Centers

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Vincent in ‘t Veld

Emmanuel Becker

Meet the new MD of Digital Realty

The Foundation of the Italian Data

Netherlands

Center Association

sustainability

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70 Jan Willem van Roggen

Michael Winterson

Demand vs. Costs: Are data centers

A once-in-a-lifetime

still financeable?

transformation is upon us

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Table of Contents

Table of Contents

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INSIGHTS

ANALYSES

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Cloud

Choose Facts & Figures

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The Future of Data

Energy Market Update

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150

Connectivity

Data Center Market

LIFESTYLE

Centers in Europe

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108

State of the Data

Break the Framing

Centers in Southern

with Facts

Europe

26 Praise Your Data Center

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138 Blitz The Bytes

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Editorial

Editorial

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CHALLENGE THE BOUNDARIES

In this world of information overload it is a real challenge to filter out the relevant information. Day to day news does not provide the insights needed by industry leaders to strategize

future plans. It’s with that in mind we initiated our Kickstart

Pim Kokke Editor-In-Chief

Conference now 6 years ago. To create a network event where

trends and insights are given by and for industry leaders. It

has grown to become - the key event - in Europe. And now, we are taking the next step in our journey. Today, we are introducing Datacentered: a quarterly magazine that features

In order to do this, we contacted our community and

(Managing Director of Digital Realty Netherlands) who talks

decided that we want to feature industry experts

about his first 100 days as managing director. Moreover, we

data center industry in Europe.

across Europe to share their expertise and vision about

present the latest insights and trends from the Southern

investments, legislation, sustainability and tech. We

European Market and the longread ‘The Future of Data

Just with all the initiatives of the Dutch Data Center Association (e.g. Kickstart

are very proud that you are now able to expand your

Centers in Europe’ discusses the sustainability public

Europe Conference, Datacenterplatform and reports), we are always striving

knowledge by reading the articles from our contributors.

relation (PR) challenges of the data center industry.

for quality in a fashionable way. During the first brainstorms, we discussed

For example, Michael Winterson (Chairman of the

which magazines Stijn Grove and I did were discussing esthetics. In these

European Data Center Association) explains why the

With Datacentered, you have a magazine that is a need

sessions, we looked at magazines that were not focused on data centers

broad level of national and regional regulations will truly

and nice-to-have, which you can read inside and outside

and IT. Instead, our inspiration came from highly esthetic fashion, design

be a game changer for the upcoming years and how

the office. Additionally, we challenge the boundaries of

and architecture magazine. The question remained: how can we create an

the digital transformation has the power to be disruptive.

creating a magazine that will become the main reference

analyses, research, interviews, news and insights about our

appealing magazine that has the look and feel of a fashion magazine, but

for the data center industry.

features all the information that we want to present to data center industry

Furthermore, the first issue features interviews with

leaders?

Emmanuel Becker (President of the Italian Data Center

Thank you for your support.

Association) about the Italian market and Vincent in ‘t Veld

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Kickstart Europe

THE FUTURE OF DATA CENTERS IN EUROPE The Kickstart Europe Conference in Amsterdam has become one of the largest strategy and networking events in the digital industry. Industry leaders and professionals from over 30 countries come together to share the latest trends and developments about data centers, cloud and connectivity. This year, a lot of attention was place on investment strategies and challenges in the EU-regions.

WRITTEN BY PIM KOKKE

The increasing inflation rates in Europe has created

Sustainability challenge: Paris Agreement

tensions in society and all industries. To challenge the rising

Various panel sessions at the Kickstart Europe

prices, the European Central Bank (ECB) has increased the

Conference discussed the opportunities of re-using

interest rates multiple times since the Russian invasion of

the energy of data centers and the re-use of water.

Ukraine. The developments and the subsequent increase

In the session ‘Guide to Sustainable Data Centers’, the

in energy prices have led to more concerns on how to

main topic was how data centers and suppliers can

become more sustainable. At the most recent edition

achieve certain sustainability goals from a product and

of the Kickstart Europe Conference in February, visitors

solution point-of-view. For example ten years ago, we

discussed what steps the digital industry needs to take

saw around 10 to 15 zettabytes of data in the world

in order to become more sustainable while still achieving

Today, we are seeing around 100 to 110 zettabytes of data

business goals.

in the world. So we see a sharp increase in data that’s only going to continue.

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DESPITE THE HIGHER CONSTRUCTION COST AND INTEREST RATES, WE STILL SEE A HEALTHY ENVIRONMENT WHERE THERE IS ENOUGH CAPITAL AND FINANCING AVAILABLE. the Paris Agreement about the climate could function as a reference for your own business. “At Legrand, we are very committed to our developed Corporate Social However, the energy and water use of data centers

Responsibility (CSR) roadmap that we launched in

remained stable in the last ten years in which you could

March 2022 and will last up to 2024 in which we want to

say that data centers and suppliers took their responsibility

complete our goals. We have 15 targets, divided in four

in becoming sustainable. We realize that we’re at the

areas that we want to have completed next year. For

center of a community and quite some priorities around

example, we want to reduce our CO2 emissions within

being sustainable and take that responsibility got very

scope 1 and 2 by 10% each year through energy efficiency

serious.

improvements at our manufacturing sites and renewable energy deployment. Furthermore, we want to eliminate

As mentioned, the industry has taken large steps to be

100% of single-use plastic in flow packs and expanded

energy efficient. Daniel Turk, Solution Portfolio Manager for

polystyrene packaging”, says Ralf Ploenes (Vice President

Data Centers at ABB, was also one of the panel members

of Legrand Data Center Solutions Europe).

and elaborates on how everyone in the industry is taking their responsibility. “Everybody has a mobile phone

Moreover, we see an increase in demand for hardware

and uses streaming services. The amount of data has

and renewal of IT hardware but in the end we want to

increased so much, but the usage of electricity has not

keep the life cycle of these products as long as possible.

increased that much. However, there are always things

This contradiction sparks the discussion on how to cope

to do as well. If we look from the side of ABB, we have

with this fact. Jelle Slenters, commercial director at Sims

good and efficient motors for cooling. A more efficient

Lifecycle Services, explains:

uninterruptible power supply (UPS) or better cooling switchgear can improve your energy efficiency.

The first step, however, is to set a target for your organization. For example, the science-based goals from

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It is easy to recover material by just moving it on to the

Going South

secondary market and taking back the residual value. I

Many National Trade Associations (NTA’s) came together

think that we as an industry should do a little bit more.

at Kickstart Europe to discuss their mutual challenges.

For example, when we get a server in, maybe we should

One of the most heard key-messages at the Kickstart

prepare it for liquid cooling. There are some parts and

Europe Conference was perception of data centers

components that we can buy and, in this way, upgrade

towards media, politics and society. The framing that

those machines up to a certain standard. However,

data centers have a large impact on climate change

we need demand for these solutions. If you look at the

has to be debunked in a way that the industry should

automotive industry, somebody needs to buy that three

clearly inform the public opinion about the energy usage

or four year old Audi. Therefore, I think we need to enhance

and which initiatives are already implemented in order

the product before it goes onto the market by, for example,

to achieve the global sustainability goals.

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extend the life cycle or expand the warranty upgrades.”

Investments forecast In the Investment Outlook panel, the topic focused on the capital availability within the industry. Timo Buijs, Director Project & Infrastructure Finance at the Dutch bank ABN AMRO, explains that this year growth will still be substantial. “From the banking side, there is still a demand for financing data centers. We do believe that in a couple of years, just like in the United States, other sources or at least debt funding will come to the market and will serve as an important alternative form of investing in data center projects in Europe. Furthermore, there is still a healthy growth and demand from enterprise hyperscalers which drives the prices up. Despite the higher construction cost and interest rates, we still see a healthy environment where there is enough capital and financing available.” The latter is also what Konstantin Hartmann, Vice President Sales & Commercial at NTT Global Data Centers EMEA, sees. “There will be a large portion of organic growth in existing markets. At NTT, we

For Southern Europe, executives of the NTA’s from Spain,

According to Assink, a lot of investments occur in the

have a strong basis in Frankfurt and London but also in

IItaly and France joined the panel session in which they

Mediterranean area because of the Strait of Gibraltar

other markets. We will come into, I would say, a decade

discussed recent developments and challenges in their

that is connected to the subsea cables in the Atlantic

in the next few years where we will see a lot of deliveries

country. Robert Assink, co-founder of the Spanish Data

Ocean, and the Suez Canal that is connected with the

going on. And I think this is going to shake off a little bit

Center Association, shared how the DC-market in Spain

Pacific Ocean. “For geographical metrics, the distance

the Merger & Acquisition (M&A) activities in the market as

is growing. “There are a lot of new investments in the

between the continents in order to connect each other

well, because it’s going to be exciting to see how all these

Spanish market. In 2019, there were only three international

is shorter thus leading to lower latency and lower costs.

commitments, specifically the pre-leased commitments

multi-tenant data center operators in Spain. Nowadays,

In this way, we can create a fast Internet highway which

that many providers have done, are going to be delivered.

there are already six operators and if all the announced

connects three continents from Virginia (United States)

These M&A activities will also be focused on certain

plans come through, we expect 12 operators in the

to Bilbao (Spain) with connections through Barcelona,

markets in order to get knowledge about these markets.”

upcoming 2-3 years.”

Marseille and the Pacific Ocean.”

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In France, legislation and sustainability are the main topics for the industry but also the national authorities. “As an association, we have a working group on data center and cloud that addresses the circular economy, renewable energy, energy efficiency and cooling systems. We want to decarbonize our industry in which we collaborate with the public authorities. With the latter, it took time to establish a realistic dialogue with the public authorities to explain what a data center is. But now we are more well-known, which is good because regulation is growing in France. For example with sustainability, we have 2-3 new laws every year that affect data centers”, says Geraldine Camara, managing director of the France Datacenter.

The same challenges occur in Italy. Emmanuel Becker, managing director of the Italian Data Center Association (IDA). “The key challenge is to deliver enough capacity for the requests in the market as the countries in Southern Europe have become more popular in constructing new DC-locations, which also attract suppliers and cloud service providers.

Furthermore, the connectivity between these countries is still a challenge as we are mainly discussing the use of subsea cables and not specifically what connectivity we can have between each other in order to connect ourselves on an interconnected global level.”

Nordic swings In the panel discussion about the Nordics, the members discussed the strategies and developments in their country, and the perception of data centers in the media. For example, Veijo Terho, chairman of the Finnish Data Centre Association, shared that the demand for new DC-locations in Finland are quite high. “Microsoft is building multiple data centers and Google is also further expanding their existing data centers.

However, we are also dealing with bureaucracy in the way of getting permission for building new data centers despite all the green energy (e.g. wind) sources that we have.”

In Sweden, the perception of data centers and public opinion differs compared to Ireland and The Netherlands. However, there is still plenty room for improvement regarding this topic.

“We really need to talk with others about the importance of our

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“WE REALLY NEED TO TALK WITH OTHERS ABOUT THE IMPORTANCE OF OUR DIGITAL INFRASTRUCTURE, BECAUSE THIS IS AN ENABLER FOR ALL THE DIGITAL SOLUTIONS THAT POSITIVELY IMPACTS OUR EVERYDAY LIFE.” ISABELLE KEMLIN, VICE CHAIRMAN OF THE SWEDISH DATA CENTRE INDUSTRY ASSOCIATION.

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digital infrastructure, because this is an enabler for all the

addressing the regulation, Haringsma explained that

digital solutions that positively impacts our everyday life.

Belgium is working towards the European perspective

Then, we can encourage younger generations to work in

as local politicians are not prioritizing data centers.

our industry”, explains Isabelle Kemlin, vice chairman of the

Furthermore, he explains that there are some regions in

Swedish Data Centre Industry Association. The perception

Belgium that have not invested in the future thus leading

of data centers is also a hot topic in Norway. “We see a

to some challenges for the grid. “Because of this, there

change of perception in Norway. Previously, our country

is a lot of potential for investments to be made in order

was mostly regarded as ‘too exotic’ for large investments

to make sure that there will be no issues on grid usage”,

due to the historical factors such as the lack of connectivity

says Haringsma.

and the fact that Norway, because of our landscape, was not fitted for the construction industry. However,

In Germany, there is a lot of discussion about the amount of

this frame has changed quite rapidly in the short term

regulations for data centers. Anna Klaft, chairwoman of the

and we see that more tech companies are evaluating new projects in the country”, says Bjørn Rønning, general manager of the Norwegian Data Center Industry.

Thomas Volder, chairman of the Danish Data Center

“

German Data Center Association, explains: “We recently got a new

WE SAW QUITE A POSITIVE MOMENTUM FOR HYPERSCALERS.

Industry, explains the current

energy efficiency law that wants to regulate mandatory heat recovery aspects for new facilities and limitate the server temperatures.

However, we think that this law does not suit our industry thus leading us to further discuss the implementation of it with

situation in Denmark. “We saw quite a positive momentum

politicians, decision makers and the municipal authorities.”

for hyperscalers by having Google, Apple, Facebook

Klaft further addresses that Berlin is expanding itself as the

and three data centers from Microsoft. Those were big

second DC-market in Germany because Google chose

investments in our digital infrastructure. However, on

the city for building a full cloud service region. “But we

the colocation side there was some growth but not at

also have Munich, Düsseldorf and Nuremberg where a

the pace of Norway. Therefore, I believe that we will see

lot of local data centers are situated”, tells Klaft.

a bigger momentum on this site for the future which will go hand in hand with the further developments at the

Gary Connolly, president of Host in Ireland, shares that

hyperscalers sites. “

the industry should focus on the two biggest trends: decarbonization and digitalization. Furthermore, Connolly

West: We’ve got the power for a new economy

addresses that the power grid limits are something

But what trends are evolving in Western Europe? In the

that needs to be taken seriously. “In Ireland, we have a 1

FLAPD and Belgium, there are a lot of developments that

Gigawatt (GW) now at the moment with 600 Megawatt

need to be addressed by the representatives.

(MW) under development. The challenge is that you are looking to integrate 1.6 GW with a two Gigawatt funnel

Friso Haringsma, co-founder of the Belgian Digital

into a 5 Gigawatt (GW) grid. That is insane. And as data

Infrastructure Association (BDIA), explains what is

centers are just a large floppy disk, we are more interested

happening in the Belgian market. “In Belgium, there is

in the data itself.”

a decentralization of the data as it’s stored mainly in

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on-premise data centers. If you look at the size of that, it’s

The limits of the power grid is not the only thing that comes

almost double the size of co-location. Therefore, there is

to mind. Stijn Grove, managing director of the Dutch

a lot of potential in working with IT concentration and to

Data Center Association (DDA), explains that the industry

have a more efficient way of handling the data.” When

also has to address how it can grow as there is a lot of

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shortage in various domains. “There is a shortage of people, power grids and land. Therefore, I think the data center industry needs to integrate more with the grid. So we are looking into new areas where we can build substations ourselves and connect them directly to the high voltage grid. Let us use the grid connection that we also have for batteries in between, because they also have a shortage of grid connections. In this way, we can grow in an integrated way”, tells Grove.

Grove further explains that in the Netherlands data centers take a leading position in the new economy. “The new economy is open, transparent, inclusive and sustainable. And in order to build

and content providers than any of

this, you need digital services and

the other regions in the local market.

demand for data centers expands”,

a solid infrastructure as we live in

And based on that, data center

says Martin Madlo, president of the

a time where we rely more on the

market used to grow exponentially

Austrian Data Center Association. In

infrastructure in our own country.

when hyperscale providers got

Poland, there are three challenges

In sum, you could say that in all EU-regions the same challenges

Therefore, we will also change the

interested in that market, not only

in the local market. Sławomir

are occurring. The power grid, energy availability, the public opinion

way we build data centers in the

to access the Austrian customers,

Koszołko, CEO at Atman, explains

about data centers and future constructions are just a few that

future and the place where we build.”

but to have a point of presence in

how energy prices, availability and

were mentioned during the panel discussion at the Kickstart Europe

the Central East European region

Megawatt connections are the

Conference. But despite these challenges, the investment climate

to reach out to the neighboring

biggest challenges for the country.

for (new) data centers is and will be booming.

The Eastern Europe market is also

countries as well. From Vienna, you

“If you build more and more, you

growing. According to the panel

can reach five capital cities within

will have the problem of availability

members, the market size will grow

less than five milliseconds, which is

of energy and connections. For

exponentially in the upcoming

a strategic advantage, definitely if

example, every operator wants to

years. “Currently, there are 70 data

we want to reach out into the region.

be in the same place like Warsaw.

centers and this number is still

Furthermore, there are also a lot of

One of the solutions is to move to

growing. For example, Vienna has

regional players in the regions like

other cities and create some form

more carriers, Internet exchanges

Styria (upper Austria) where the

of diversification.”

East Europe: Diversification

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Lifestyle

Lifestyle

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PRAISE YOUR DATA CENTER Marenostrum 4 is a supercomputer located in Barcelona’s Chapel Torre Girona and part of the Barcelona Supercomputing Center (BSC), The supercomputer has gained significant recognition as one of the most powerful and advanced supercomputers in Europe.

Installed in 2004, it has undergone several upgrades since

The general-purpose block has 48 racks with 3,456 nodes.

then to maintain its cutting-edge capabilities. Furthermore,

Each node has two Intel Xeon Platinum chips, each with

the MareNostrum consists of multiple interconnected

24 processors, amounting to a total of 165,888 processors

clusters of processors and accelerators, enabling parallel

and a main memory of 390 Terabytes.

processing and efficient computation.

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Expert Insights

Expert Insights

MANUEL SPAIN DC

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TOWARDS A DIGITAL DECARBONIZED WORLD Spain and the data center sector are living in an idyllic

analysis. This rapid growth is not without risks and

moment, like the beginning of a love affair where

challenges. The first of these challanges is undoubtedly

everything is perfect, everything adds up and everything

sustainability. The data center sector must take a firm step

fits together. Those are known as “days of wine and roses”.

towards climate neutrality and Spain is at the forefront with respect to its neighboring countries. Thanks to its

For the first time in its recent history, Spain caught the

strength in renewable energies and a more recent start

train of an industrial revolution and are seated in the first

of activity, it could be said that the data centers in our

class wagon. It is located at one end of Europe with direct

country are natively sustainable. We need to achieve

communication to Africa, America and the center of the

full integration of the data center into the environment

continent. Due to a solid network of connections and an

and society, so that we are seen as part of the solution

enormous development of renewable energies, Spain

to environmental problems, the climate crisis and the

firmly position itself as the hub of digital communications

rational use of natural resources.

in Southern Europe.

Talent is another great challenge facing the industry. The Large companies and major international investors have

rise of digital transformation is causing an increase in the

set their sights on Spain, which in the coming years will

demand of data centers, which must be nourished by

receive close to 7,000 million euros in direct investment

professionals with a high technological profile. Thousands

and another 10,000 million euros in indirect investment. This

of them will be needed in the coming years and despite

growth will lead the country to comfortably exceed 600

the public-private efforts there is a shortage in the market.

MW of power by 2026, bringing it closer to the most mature markets in Europe. In short, Spain has gone from being very

Finally, the challenge of regulation. The development of the

distant from the large data centers, the so-called FLAPs

data center sector needs strong institutional support at all

(Frankfurt, London, Amsterdam and Paris), to becoming

levels, local, regional and national. It is our responsibility to

one of them. We could already speak of FLAPS including

make authorities and society aware of how necessary the

the S for Spain.

data center is to successfully grasp a digital, decarbonized society. Development indexes are much higher in regions

The rapid growth of data usage, post-pandemic world, and

where data centers are installed: job and wealth creation

the new trends in all fields (health, mobility, education, etc.)

is much stronger where digital and green transitions are

explain this unstoppable process towards digitalization,

more advanced.

decarbonization and, therefore, sustainable development.

GIMÉNEZ 36

data centers is a centerpiece of this process that is

These challenges are the thorns on the roses I mentioned

fundamental to humankind.

at the beginning. Thorns that need to be trimmed so that they do no harm. Spain has a great opportunity to grow

The expectations must give way to a mature and serene

and to do so without harming anyone or anything.

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SHAPING THE FUTURE OF DATA CENTERS The concurrent need for sustainability, energy transition and cost reduction has become pervasive throughout the entire data center industry.

“All the while, well-known requirements such as security and compute power have not allayed, resulting in a ‘New Normal’ for the entire market”, says Carlo Brouwer, managing director of STULZ Benelux.

WRITTEN BY MICHIEL VAN BLOMMESTEIN

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WE ARE WORKING TO CREATE THINK TANKS TO TACKLE SUCH SUBJECTS. THESE GROUPS WILL INCLUDE SOME OF THE KEY PLAYERS IN THE MARKET

The entire world is in the midst of a transformative phase,

Heat

focusing on sustainability, energy transition, and cost

It’s these kinds of challenges that are in the ballpark of

On paper at least, these challenges of the New Normal

savings. That has numerous implications that complicate

STULZ to solve. “For example, we’ve been working with

are as good as solved. But there are still areas where

operations and design of data centers. “One of the

Cool-IT in offering on-chip cooling,” Brouwer says. “Such

more discussion and research are needed, Brouwer

crucial factors impacting data centers is the increasing

techniques, as well as submersive cooling, can really help

warns. “We don’t know what to do with F-gases,” he

temperatures within facilities,” Brouwer says. “Increasing

data centers tackle the high power densities we’re seeing

says, mentioning refrigerant gases that while ozone

the temperature by just a bit can have a significant effect

these days.” The solutions offered by STULZ naturally

friendly has an enormous global warming potential. “Sure,

on power usage. However, higher temperatures also have

also help data centers in their goals of offering heat to

there is much mentioning of propane as an alternative.

a significant impact on equipment such as chillers and

other objects and buildings. “Heat reuse is a challenge,

However, the quantities needed would be extremely high.

coolers. Refrigerants are becoming increasingly critical.”

as the heat is being generated 24 hours per day and 7

Finding a balance between advantageous properties and

Scalability is becoming a pressing concern as well. “In

days per week throughout the entire year. There are not

regulatory compliance is essential.” Brouwer highlights

the past, we saw modules with a capacity of 500 kW per

concurs. “Simply increasing the airflow until you get

many prospective customers who need all that heat all

the importance of open discussions among industry

room. But now, 2 MW is becoming increasingly common.

small-scale tornadoes in your IT room is not viable. And

the time. It also demands that the data center facilities

stakeholders, suppliers, and government bodies to

Another example is the power per rack, where we are

newer techniques such as liquid cooling do work, but

are near such heated objects, which often is a break

collectively explore further possibilities. “We are working

often well over 10 kW, with extremes even reaching 100

then the return temperature puts additional strain on the

from the traditional out of the way locations where data

to create think tanks to tackle such subjects. These groups

kW.” It’s not easy to manage such changes, and Brouwer

chillers. So you need to prepare for all of that.”

centers have always been constructed.”

will include some of the key players in the market.”

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Interview

Datacentered

Artificial Intelligence Meanwhile, the dynamic nature of the industry means that data centers have to keep delivering ever increased performance and security. Driven by innovations such as artificial intelligence (AI), the exponential growth in computing capabilities has made data centers the PCs of the modern era. “Whether you want it or not, modern society simply needs the services offered by data centers,” Brouwer says. “Many applications that are vital for healthcare for example wouldn’t exist without them. And AI will become equally important.” While some concerns around the proliferation of AI have become part of the public debate, Brouwer states it’s very important to foster acceptance through regulations.

The data center industry is undergoing a paradigm shift towards sustainability, compliance with regulations, and innovative technologies. It continues to play a vital role in supporting various sectors, collaboration, and open discussions among industry stakeholders will be crucial to navigate these changes successfully within this New Normal. “And we need to keep up”, Brouwer concludes.

42

43

Datacentered

Expert Insights

NATASCHA

Expert Insights

Datacentered

LEGISLATION FOCUSED ON SUSTAINABILITY

EVERSHEDS SUTHERLAND

Undoubtedly, data centers have been the subject of

Province of North Holland in their Data Center Strategy

debate in the Netherlands in recent years. While the

2022-2024, will take shape over the coming period.

demand for data storage increased immensely, scarcity

Developers and operators should expect additional and

of land, power constraints and a national nitrogen crisis

detailed conditions e.g. on energy savings and water

have caused national and local governments to formulate

usage. These conditions will become part of the permitting

stricter requirements for operating data centers.

process for new data centers and existing data centers that want to expand.

In July 2019 the municipalities of Amsterdam and Haarlemmermeer both announced a moratorium, and

It will be interesting to see how governmental authorities

the construction of new data centers within their borders

will be able to support data center operators and

was temporarily halted until local policies were set in place.

developers who are facing all these environmental

On 16 February 2022, the National Minister for Housing and

challenges at the same time. The nitrogen crisis currently

Spatial Planning issued a preliminary planning decision

prevents any construction that adds more nitrogen into

on hyperscale data centers. With the exception of two

the environment – even if it concerns construction of a

areas, hyperscale data centers were banned nationwide

sustainable project such as CCS or the simple installation

and stricter rules were announced for data centers larger

of solar panels. Finally, let’s not forget the new Environment

than 10 hectares and consuming 70 MW or more of power.

and Planning Act. This Act is still expected to take effect as of 1st of January 2024. This major piece of new legislation

Since 2020 we have seen local and regional governments

combines laws for spatial planning, infrastructure,

starting to formulate data center policies and strategies.

environment, nature and water and will have a major

These documents all have a strong focus on sustainability

impact on how we deal with regulatory aspects.

and on spatial aspects such as integration of data centers.

Designated and specific locations for data centers are

Biography

embedded in zoning plans, which also contain rules on

Natascha Geraedts is a Partner at Eversheds Sutherland

landscaping. Sustainability aspects mainly focus on

and part of Eversheds’ renowned Global Datacenter and

energy consumption, use of sustainable energy, residual

Digital Infrastructure team. Natascha started her career

heat and water safety and water usage.

at the Council of State and has over 20 years’ experience.

Natascha is seen as the “go to expert” in the Dutch market

GERAEDTS 44

These policies and strategies have in itself created a

for her knowledge in the data center sector and data

framework for data centers in addition to the applicable

center developments. Natascha frequently speaks and

EU and national legal framework as set out in specific

publishes on environmental and regulatory aspects of

environmental legislation. We foresee that establishment

data centers and she has been a yearly speaker at the

conditions for data centers that were announced by the

KickStart Europe Conference since 2021.

45

Datacentered

ESG Strategy

WHAT IS YOUR ESG STRATEGY? Governments and policymakers around the world have begun introducing codes and regulations for organizations to help meet ESG and sustainability goals. The European Union has introduced the Corporate Sustainability Reporting Directive (CSRD), which will require about 50,000 organizations to formally report on an annual basis starting in 2025, based on 2024 data.

FIRST OF ALL, WHAT FALLS UNDER ESG?

ESG Strategy

Datacentered

ESG has become a top of mind topic for management

Organizations need to quantify and address these topics

and boards especially in the last couple of years.

with both short-term and long-term strategies to manage

With the introduction of CSRD, companies’ claims and

their risk exposures. Also, it is important to understand who

commitments on ESG matters shall be put to the test

the stakeholders are and what their drivers are.

once they start reporting on them.

1

CAPITAL PROVIDERS

Over 90% of studies show a positive correlation between ESG factors and financial performance.

ENVIRONMENTAL

SOCIAL

ENVIRONMENTAL

Carbon

Human Capital

Carbon

Carbon Emissions

Labor Management

Carbon Emissions

Product Carbon Footprint

Health & Safety

Product Carbon Footprint

Financing Environmental impact

Human Capital Development

Financing Environmental impact

Climate change vulnerability

Supply Chain labor Standards

Climate change vulnerability

Natural Resources

Product Liability

Natural Resources

Water Stress

Product Safety & Quality

Water Stress

Biodiversity & Land use

Chemical Safety

Biodiversity & Land use

Raw Material Sourcing

Financial Product Safety

Raw Material Sourcing

Pollution & Waste Toxic Emissions & Waste Packaging Material & Waste Electronic Waste

Environmental Opportunities

Privacy & Data Security Responsible Investment

Pollution & Waste

Health & Demographic Risk

Toxic Emissions & Waste

Stakeholder Opposition Controversial Sourcing

Packaging Material & Waste Electronic Waste

Social Opportunities

Green Building

Access to Communities

Green Building

Renewable Energy

Access to Communications

Renewable Energy

Access to Health Care Opp’s in Nutrition & Health

46

Over 1,800 climate-related laws and policies are already in place globally. Over 500 sustainable finance policy instruments are in place

2

in the largest 50 global economies.

CUSTOMERS

Increased reputation translating into up to 11% higher market cap. 76% of consumers would refuse to buy a product if a company operated contrary to their beliefs.

3

66% of consumers are willing to pay more for sustainable brands.

Environmental Opportunities

Clean Tech

Access to Finance

REGULATORS

Clean Tech

EMPLOYEES

Good ESG helps win the competition for talent. 55% higher employee morale. 16% higher productivity, with measurable impact on shareholder value.

47

4

Datacentered

ESG Strategy

WHAT ARE THE TANGIBLE BENEFITS OF INVESTING IN ESG INITIATIVES? Investing in . . .

. . . Results in

E

Energy efficient technologies Carbon reduction measures

Operational efficiency Stronger market positioning

Environment preservation initiatives

Positive reputational effect

Improved labour standards

Reduced costs of accidents and ill health

Anti corruption and frauds controls Privacy and data protection

S

Higher employee retention Reduced risk of internal & external frauds

Health and safety

Mitigated risk of fines and compensations

Roles and responsibilities

Align investments vs. business priorities

ESG budgeting process Monitoring metrics and KPIs

G

Reporting

Improved reputation Disclosure to relevant stakeholders Access to cheaper financing

Our team of experienced specialists can help determine

ESG transformations. We work with you to develop a

the implications of ESG issues for your organization.

plan and integrate it into your future ERM processes to

Marsh is at the forefront of understanding how existing

better align risk and insurance management in terms of

insurance relationships can change and creating new

coverage responses and renewal information.

solutions in response to emerging risks associated with This article is an (paid) advertorial. The editors of Datacentered are not responsible for the content of advertisements in any related form.

48

Operations

Supply chain

Own processes

Environmental loss prevention

Stakeholders

Climate change policies

Datacentered

EU Focus

EU Focus

Datacentered

STATE OF THE DATA CENTERS IN SOUTHERN EUROPE

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51

Datacentered

EU Focus

EU Focus

Datacentered

In Southern Europe, the data center market is developing rapidly. At the moment,

The growth is the result of a number of complementary trends. The key driver is

Pb7 Research has identified a colocation data center capacity of 360 Megawatts.

the demand from hyperscale cloud providers, such as AWS, Google, Microsoft,

The majority of that capacity is spread across Spain and Italy, especially in

and Oracle. In Europe, also in the south, they use a fairly even mix of colocation

and around Madrid and Milan. However, the Portuguese and Greek markets

(wholesale and built-to-suit) and self-built data centers. Further, Southern

are actually quite sizable. And when we made a thorough inventory of all the

Europe has developed into a major intercontinental connectivity hub. It has

planned data center developments for the coming five years, we were able to

become a crossroads of major sea cables from the Americas, Africa, the

identify an enormous volume of 760 Megawatts in total. Obviously, there will

Middle East and Asia. In the meantime, Southern European governments are

be plans that have not been made public and escaped our eyes, especially in

very eager to attract data centers and other international digital investments.

Greece and other countries such as Croatia and Malta. And on the other hand,

Finally we also see that digital transformation is being embraced at a high

there are some plans that are quite speculative. However, it is clear that the

speed, resulting in growing local demand for professional data center housing.

data center industry is booming in Southern Europe.

Madrid

COLOCATION DATACENTER CAPACITY (MW) IN SOUTHERN EUROPE, CURRENT CAPACITY AND EXPANSION PLANS 400

MW MW plans

350 300 250 200 150

Spain

145

360

Italy

115

190

Portugal

36

160

Greece

34

30

Other

30

20

100 50 0

Spain

Italy

Portugal

Greece

Other

Source: Pb7 Research, 2023

52

53

Datacentered

EU Focus

EU Focus

Datacentered

Southern Europe: Pb7 Research is using the United Nations

During the past five years, countries such as Spain,

Hyperscale growth

definition of Southern Europe. That means we include

Portugal, Italy, and Greece have shown signs of economic

Across the South of Europe, we see a lot of announcements

The countries in the North West of Europe on average

Albania, Andorra, Bosnia and Herzegovina, Croatia,

improvement. These nations have implemented structural

that are directly related to investments by hyperscale

have about 1500 hours of sunshine, the UK and Ireland

Gibraltar, Greece, Italy, Kosovo, Malta, Montenegro, North

reforms, pursued fiscal consolidation measures, and

cloud providers. When these providers first settled in

even less. But in the South of Europe, countries on average

Macedonia, Portugal, San Marino, Serbia, Slovenia, Spain,

attracted foreign investments, contributing to increased

Europe, in the first half of the 2010’s, they focused their

have about 2800 hours of sunshine that are also more

and Vatican City. The region is responsible for 18% of the

economic activity. At the moment, the region is host to

investments in the Nordics and the North West of Europe.

evenly spread across the calendar.

European GDP, and within the region, 81% of the GDP is

just 8% of all European colocation data centers in terms

The Nordics were attractive due to a combination of widely

produced in Spain and Italy. In 2022, most countries in the

of IT power (MW). While governments in the North West of

available low cost renewable power, plenty of space

Furthermore, we see that the difference in required cooling

region outperformed the EU growth rate. Italy performed

Europe are putting brakes in place for major data center

and a cool climate. The North West was important as it

power between the North and South has declined rapidly

only just above average, but countries such as Spain,

investments, the South of Europe is still very much actively

provided all connectivity requirements and closeness

and will likely decline even further. Free air cooling is

Portugal, Greece and a number of smaller countries

attracting new investments.

to a large number of consumers and business centers.

realistic for most of the year. As a result, PUE’s even below

showed GDP growth of more than 5%.

1.2 are feasible and are increasingly being achieved. This

REAL GDP GROWTH RATE - VOLUME, 2022 Malta

6.9%

Portugal

6.7%

Coratia

6.2%

Montenegro

6.1%

Greece

5.9%

Cyprus

5.6%

In more recent years, hyperscalers have moved from a

has leveled the playing field in Europe significantly. With

centralized approach to a mixed approach, where they

the anticipated string growth in the adoption of liquid

move closer to the edge. Some activities will remain

cooling, the differences will decline even further before

concentrated, but they started to roll out data centers

we hit 2030. With the growth of very large data centers,

– self-built and rented - to new locations, distributed

the demand for water will also grow, a resource that is

across Europe. With these new data centers come new

increasingly scarce in the North and South. We already

‘local zones’ where data can be stored and processed.

see data centers being creative, for example by storing

There is a clear customer demand for more local zones

rainwater in big tanks. However, governments will also have

by customers, in order to boost performance (reduce

a role in establishing rules and guidelines for water usage.

latency) and to achieve data sovereignty and compliance.

Hyperscalers have achieved the scale that they can afford

In sum, hyperscale cloud providers are investing heavily

to do this cost-effectively.

and are responsible for probably 80% of all new data center demand in Southern Europe in the coming five to

Spain

5.5%

At the same time, building and operating data centers

ten years. They are renting large buildings and entire data

Slovenia

5.4%

in the FLAP-D markets (Frankfurt, London, Amsterdam,

centers in and around the key metropolitan areas. As a

Paris, Dublin) are becoming complex due to shortages in

result, not only the traditional data center cities (Madrid

grid power and space. As a result, hyperscalers are more

and Milan) benefit, but also cities such as Barcelona,

open to exploring alternative locations. Many Southern

Athens and Rome. In addition, they build hyperscale

European governments are rolling out the red carpet

data centers at strategic locations, for example where

for these investments and they have a lot to offer. For

intercontinental sea cables come ashore. As a result,

example, Southern Europe holds great opportunities for

opportunities emerge in locations such as Portugal (Sines)

carbon free energy production based on solar energy.

and the North-West of Spain (Galicia).

Bosnia and Herzegovina

3.9%

Italy

3.7%

Kosovo

3.5%

European Union - 27 countries

3.5% 2.3%

Serbia

2.1%

North Macedonia 0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Source: Eurostat, May 2023

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Datacentered

EU Focus

EU Focus

Datacentered

Intercontinental connectivity has changed the game

Governments focus on attracting international investments

increase in subsea cable landing points.

The FLAP-D markets biggest raison-d’être is acting as the digital gateway

Governments in most parts of Southern Europe are very

Moreover, they invest strongly in the digital infrastructure

between the United States and Western Europe. Historically, that’s where the

welcoming to data center investments. They perceive

on land to consumers and businesses, and the end users

first transatlantic cables landed and the transatlantic internet interactions

data centers as a crucial part of the digital infrastructure

in order to drive the local digital agenda. For example,

emerged. While the Northwest of Europe continues to be a major economic

that is required to build a modern economy. Furthermore,

broadband penetration is still relatively low in Spain and

and digital key market, we are seeing strong economic developments in other

data centers offer a lot of job opportunities during the

Italy, but Greece and Portugal are keeping up very well

European regions as well, including Southern Europe. More importantly, the

construction of new locations and when these locations

compared to FLAP-D countries. And when we look at the

global connectivity map has changed significantly over the last ten years.

are operational. To support this ambition, they are

role of fiber, Spain and Portugal are very much at the

Portugal is a major landing point for submarine cables to and from Asia,

welcoming big connectivity initiatives, resulting in a strong

forefront. Italy however, still has its work cut out.

Africa and South America. And in the North West of Spain there are multiple landing points connecting Spain to North America.

OECD FIXED BROADBAND SUBSCRIPTIONS PER 100 INHABITANTS, BY TECHNOLOGY

A lot has also been written about Marseille in the south of France as a connectivity hub with great connectivity to the East. But also the South of Spain, Crete, Italy (Sicily in particular) and Cyprus are well connected to submarine cables to and from the Far and Middle East. This provides a lot of opportunities for international colocation and makes the South of Europe

JUNE 2022 (SOUTHERN EUROPE VS. FLAP-D COUNTRIES)

attractive for new hyperscale campuses.

Cefalù, Sicily

Rank

Country

DSL

Cable

Fiber

Satellite

Fixed wireless

Other

Total

Total subscriptions

1

France

16,3

5,5

23,9

0,0

0,9

0,0

46,5

31 740 000

2

Germany

30,1

10,6

3,6

0,0

0,0

0,0

44,4

36 920 000

3

Netherlands

12,6

19,6

12,1

0,0

0,0

0,0

44,3

7 774 473

4

Portugal

2,1

11,6

26,4

0,0

2,5

0,1

42,6

4 383 832

5

Greece

41,6

0,0

0,2

0,0

0,0

0,0

41,8

4 463 358

6

United Kingdom

29,7

8,0

3,6

0,0

0,0

0,0

41,3

27 830 739

7

Spain

2,2

3,8

28,6

0,0

0,6

0,0

35,2

16 657 115

8

Ireland

14,0

7,4

8,6

0,1

1,7

0,0

31,8

1 595 096

9

Italy

5,9

0,0

5,2

0,0

2,9

17,6

31,6

18 664 734

Source: OECD, Broadband Portal, http://www.oecd.org/digital/broadband/broadband-statistics/

56

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EU Focus

In general, Southern European governments are quite active in investigating digital usage to create new economic opportunities. They may have a reputation of being somewhat difficult to work with, with a lot of red tape and many delays as a result. But at the same time they

GENERATIVE AI IS EXPECTED TO GROW VERY RAPIDLY AND WILL REQUIRE AN ENORMOUS AMOUNT OF DATA CENTER CAPACITY.

EU Focus

Datacentered

EYE CATCHERS 2022-2023 •

RAI announced an edge data center network, comprising of 18 edge data centers (3.4MW), supplemented by Milan (4MW) and Rome (40MW) data center

•

have a very positive mindset towards

The Municipality of Arcene is talking with Vitali to develop an 18 ha data center campus

(foreign) digital investments and the

•

digital agenda in general. We also see

Aruba launches two new data centers in Lombardy, offering 17 MW or power

private/public partnerships being put

services and customer experiences.

in place to get new projects off the

They can attract new customer

The south of Europe is better

ground. And in some of the smaller

bases that used to be out of reach

positioned than ever before to benefit

Southern European countries with

and provide new services to existing

from these technological advances.

small data center sectors, we also

customers.

Governments and businesses will

see central governments discussing

•

Stack opens the MIL02 data center (10MW) near Milan, bringing the total capacity to 50MW

•

Aruba opens Hyper Cloud Data Center (IT4) in Rome, start of five 6MW data centers

•

embrace it as consumers will

plant in Tuscany into a 20MW data center

directly and very actively with big

Digital technology is moving very fast.

demand it. These new digital products

technology vendors for new projects.

At the moment we are all looking at

and services desperately need a

generative Artificial Intelligence (AI) as

robust and reliable infrastructure.

a not yet completely mature solution

The networks are in place or put in

that is already disrupting areas such

place and many companies will face

The improving digital infrastructure

as online search. This may seem

make-or-buy decisions in terms of

delivers a lot of opportunities for

small, but it can potentially shake

their data center. Many will decide

building out the digital economy in

up the entire Big Tech landscape.

to move it entirely to the cloud and

these countries. Better connectivity

Generative AI is expected to grow very

even more organizations will move to

results

end-user

rapidly and will require an enormous

a combination of cloud infrastructure

Arasur data center in Vitoria (south of Bilbao),

experience and therefore more

amount of data center capacity.

and on-premises infrastructure.

with 70 MW in two phases.

digital consumption by consumers.

Moreover, Generative AI is only a

Cloud infrastructure requires a lot of

It also means that cloud services are

subset of the overall AI opportunity

data center space and organizations

easier to use, bringing a vast range

and AI itself is only a part of the big

need to figure out if they can build

of on demand digital services and

technology changes that provide big

and run robust, efficient data centers

solutions to enterprises and SMEs

business opportunities. For example,

themselves, or if they should leave

on the new Sines data center campus, plans to

alike. With access to the cloud and

we also need to consider the rise of

that to the professional. So far, this

scale up to 135 MW and eventually grow into a

great connectivity, businesses can

smart appliances ranging from light

retail colocation opportunity has

495MW campus by 2030.

invest in new business models, from

bulbs to cars, and from drones to

hardly been touched so get ready

online sales to all kinds of new digital

smart farming.

for it.

Building the digital economy of the south

in

a

better

58

ITALY

Plans to turn former waste management

•

Panatoni launches plan for 42MW data center in Catalonia, 20 kilometers from Barcelona

•

Ingonestica is partnering with Impulsa Galicia for a 15MW carbon neutral data center

•

Ingonestica is building a 150 MW data center in Cáceras (Extremadura region)

•

Merlin properties started construction on the

•

Nethits Telecom plans 20 MW data center in Valencia

•

Start Campus started building first 15MW facility

SPAIN

PORTUGAL

59

Datacentered

DCP

DCP

Datacentered

SPAIN $1.281 TRILLION

GDP

Most Connected

Digital Realty Spain •

Interxion Madrid (MAD1) (182)

•

Interxion Madrid (MAD2) (182)

Equinix Spain (53) •

Equinix MD2 (53)

•

Equinix BA1 (52)

ESpanix Datacenter (27)

81

DATACENTERS

Largest Sites APTE Spain •

Telefonica Barcelona 1-3

TATA Group Spain •

Tata Madrid

Malaga Data Center Spain

#7

DESI INDEX

• •

#34

Data4 Espagne

Orange Spain •

INTERNATIONAL TAX COMPETITIVENESS INDEX

Malaga Data Center

Data4 Group Spain

Orange Santander

Most Locations •

Equinix Spain (4)

•

Digital Realty Spain (3)

•

ADAM (3)

•

ADAM Spain (3)

•

EXA INFRASTRUCTURE SPAIN (3)

194

AMOUNT OF IX-MEMBERS

60

61

Datacentered

DCP

DCP

Datacentered

ITALY $1.886 TRILLION

GDP

138

DATACENTERS

#18

DESI INDEX

#37

INTERNATIONAL TAX COMPETITIVENESS INDEX

383

AMOUNT OF IX-MEMBERS

62

Most Connected MIX S.R.L. Italy (175) • MIX Caldera CDLAN S.R.L. Italy (35) • CDLAN Caldera21 Data4 Luxembourg S.A.R.L. Italy (28) • Data4 Italy Datacenter Campus Equinix, Inc. Italy (28) • Equinix ML2 - Milan, Cascia Seeweb S.R.L. Italy (26) • Seeweb Milano Caldera Largest Sites DEV Italia Datacenter Pisa Italy • DEV Italia DataCenter Pisa Planetel SPA Italy • Planetel Treviolo Universitá Degli Studi Di Padova Italy • VSIX DC Retelit Group Italy • Retelit Modera AtlasEdge Data Centres Italy • AtlasEdge DC Milan Most Locations • Retelit Group (30) • Centerserv Italy (12) • Interoute/GTT Italy (7) • Stack EMEA (7)

63

Datacentered

DCP

DCP

Datacentered

PORTUGAL $231.8 BILLION

GDP

23

DATACENTERS

#15

DESI INDEX

#34

INTERNATIONAL TAX COMPETITIVENESS INDEX

Most Connected Equinix Portugal (48) • Equinix LS1 Fundação para a Ciência e a Tecnologia, I.P. Portugal (7) • FCCN Lisbon - SE06 Fundação para a Ciência e a Tecnologia, I.P. Portugal (7) • FCCN Lisbon - SE03 ONI Telecom Portugal (6) • ONI Telecom Lisbon Matinha Dotsi Portugal (3) • Dotsi Lisbon DC1 Largest Sites Tata Communications Portugal • Tata Communications Seixal AR Telecom Portugal • AR Telecom Porto Fundação para a Ciência e a Tecnologia, I.P. • FCCN Lisbon - SE03 Equinix Portugal • Equinix LS1 Claranet Portugal • Claranet Porto Most Locations • Fundação para a Ciência e a Tecnologia, I.P. (4) • AR Telecom Portugal (3) • Webtuga (3)

54

AMOUNT OF IX-MEMBERS

64

65

Datacentered

DCP

MALTA $22.8 BILLION DATACENTERS

12

Most Locations • BMIT Technologies PLC (2) • CSL Data Centre Services Ltd (1) • Melita (1) • GO PIC (1) • University of Malta (1)

66

Datacentered

ANDORRA GDP

Most Connected Ziemer Group AG • SIS Ltd Malta Data Centre University of Malta • Malta University Data Centre BMIT Technologies PLC • BMIT Qormi CSL Data Centre Services Ltd • CSL Data Centre • Melita • Melita Data Centre

DCP

GDP

Most Connected DEFI Andorra • DEFI Data Center MYP Proveidor Serveis Internet • Myp Andorra Data Center Andorra Telecom • Comella Data Center Andorra Telecom

$3.2 BILLION DATACENTERS

3

Most Locations • DEFI Andorra • MYP Proveidor Serveis Internet • Andorra Telecom

67

Datacentered

DCP

DCP

Datacentered

GIBRALTAR GDP

Most Connected Gibraltar Savings Bank • Rockolo Limited World Trade Center • Gibtelecom Data Center Continent 8 Technologies • Continent 8 DC Sapphire Networks • Sapphire Networks Data Center

$3.2 BILLION

SAN MARINO GDP

Most Connected Semplify • Semplify DC

$2.09 BILLION

Most Locations • Semplify

DATACENTERS

DATACENTERS

4

Most Locations • Gibraltar Savings Bank (2) • Sapphire Networks (1) • Continent 8 Technologies (1)

68

1

69

Datacentered

Expert Insights

JAN WILLEM

Expert Insights

Datacentered

DEMAND VS. COSTS: ARE DATA CENTERS STILL FINANCEABLE?

NIBC

Amsterdam has plenty of cloud cover, and for once, it

Coming back to the question

is not related to the weather. In fact, the FLAP (Frankfurt,

The impact of interest rates on the development of data

London, Amsterdam, and Paris) data center market is

centers should not be keeping anyone awake at night.

expected to grow at a CAGR of 3% until 2027; and Dublin

Of course, being a debt-loaded sector, it is natural for

is likely to experience similar figures. With that in mind,

rising interest rates to have an impact; especially on the

as a banker, I cannot help but consider the impact of

timing and structure of financing. However, it is unlikely

the increasing interest rates on data centers’ financing.

to materialize in reduced growth for the sector. The

Will the financing of new data center projects come to

strong fundamentals driven by contracted revenues from

a temporary halt?

hyperscalers and the wholesale collocation of data centers as a service, make data centers a resilient business. Right

Cost of capital and data needs, both increasing

now, there is a good opportunity for data center groups

On one hand, the European Central Bank has increased

to reevaluate the strategy going forward, and improve

the interest rate by a total of 175 bps, since December

their credit profile. Furthermore, the development of new

2022. On the other hand, the demand for data centers

data centers will have an increased dependency on how

remains high, powered by the increasingly data-hungry

these fit and relate to their community. Once the inflation

economy. Some of its drivers are among the most trending

and monetary policy allow for more visibility, it will be

topics of the year, such as the rise of artificial intelligence,

worth taking a deep dive into the environmental, social,

the use of video content, automation, edge computing,

and regulatory factors that present a challenge to the

and augmented reality.

data center sector.

The amount of new data created and consumed has

Biography

grown exponentially in the last two decades. To put things

Jan Willem van Roggen is a seasoned banker who has a

into perspective, Statista expects the amount of new data

successful career in the financial services industry. With

to grow to 181 zettabytes in 2025. That is more than all the

over three decades of experience in banking, Jan Willem

produced data over the 2010-2019 period!

is currently heading the Commercial Real Estate and Infrastructure teams at NIBC, which operate extensively

Challenges that lay ahead

VAN ROGGEN 70

across Europe. His teams possess extensive knowledge

However, something to stay vigilant about is the

of the latest market trends and financing opportunities,

sustainability and regulatory aspects around data centers,

allowing them to offer valuable insights and solutions

and their role in society. An example is the EU Code of

to clients.

Conduct for Data Centers that provides recommendations supporting the European Energy Efficiency Directive (EED).

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THE FOUNDATION OF THE ITALIAN DATA CENTER ASSOCIATION Last march, various professionals from the European data center industry came to Milan for the launch of the Italian Data Center Association (IDA). With the installation of a new National Trade Association (NTA), the European data center industry takes a big step in further professionalizing the relationships with local and national governments. Emmanuel Becker, President of IDA, talks about the first months of IDA, recent developments and challenges in the Italian market.

WRITTEN BY PIM KOKKE

The past months have been quite busy for Emmanuel

Realty, Vantage Data Centers and CBRE Data Centers) and

Becker, President of the Italian Data Center Association

founded the association last December. At this moment,

(IDA) and managing director of Equinix in Italy. It was in

we have already over 65 members. Therefore, I am very

the Fall of 2022 when Becker met his colleagues from

proud that we have already reached this number in a

the industry. During this meeting, the question came

short term as it means that there was a strong interest

up as to why there was no National Trade Association

for an association”, tells Becker.

(NTA) representing the Italian data center industry. “This became the starting point and we came together with the founding parties (Microsoft, Equinix, Rai Way, Data4, STACK Infrastructure, Digital

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Sustainability and perception Becker addresses that more business needs to be deployed to the digital industry of Italy and to further collaborate with local authorities. “IDA is committed to be the representative source for objective information about our industry. For example, we have to inform the audience and governments about sustainability as data centers can play an important role for this matter. We explain and demonstrate to our government how, for example, centralization can lead to more efficient energy

Working groups

usage, promote social environmental sustainability and

Developing a digital hub also requires

we have signed the Climate Neutral Data Center Pact

building permits. In Italy, application

Biography

(CNDCP) with other NTA’s in Europe.”

times vary by region. “In Lombardy, the

Emmanuel Becker joined Equinix in August 2017 as

region around Milan, it is much easier Another major scope of IDA is to strengthen the position

to get your permission compared to,

of Italy as a location for data center development.

for example, Roma. Luckily, you will

“Compared to the Netherlands, people are not always

obtain your building permit from 6

aware of the importance of our digital infrastructure for

to 12 months. However, sometimes it

our economy. They need to understand how data centers

can take you up to 18 months and if

and solid infrastructure can have a positive impact on

you talk about constructions with high

the development of a country and its gross domestic

voltage (more than 9 megawatts) it

product (GDP). Therefore, having conversations with

could be up to four years”, tells Becker.

political stakeholders is very important in order to create awareness among them and thus improving our data

In sum, IDA keeps growing after its launch and has also

center ecosystem.”

already formed various working groups on topics such as sustainability, energy access, energy cost, industry

According to Becker, attracting data center operators and

recognition, permits and classification and education.

other digital parties to the Italian market is a first step in

Becker: “For the permits and classification, our country

this process. “The goal is that data traffic will come directly

requires a more streamlined process for the construction

from our data centers instead of only being a passthrough

and operation of data centers, in addition to a clearer

traffic point. That way, you will have a magnetism effect,

regulatory framework regarding land use and ATECO

thus a growing digital economy.”

classification.”

76

“

Managing Director for Italy. Before joining Equinix, he served as Managing Director for Italy at eServGlobal, Vocalcom, Easynet Group (now Interoute) and DATA4 Group.

THEREFORE, I AM VERY PROUD THAT WE HAVE ALREADY REACHED THIS NUMBER IN A SHORT TERM AS IT MEANS THAT THERE WAS A STRONG INTEREST FOR AN ASSOCIATION

Outside Italy, Emmanuel has developed and supported businesses, including his consulting company BDM International, in Germany, Spain, France, Belgium and Argentina.

Emmanuel brings valuable experience to Equinix having worked in several vertical markets, particularly in the ICT and telecommunications sector. He boasts a rich network of professional relationships and he is a member of important industry associations and is an ambassador of French Tech Milan. From December 2022, he is the President of IDA (Italian Data Center Association). Emmanuel holds a degree in Computer Science from Itin-Escia in Paris

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Cloud Insights

Cloud Insights

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CLOUD

INSIGHTS

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CISPE: “INTERNET TRAFFIC TAX IS A HARMFUL SOLUTION TO A NON-EXISTENT PROBLEM”

The European Commission launched an exploratory

1.

consultation to gather views on the potential developments

It would lead to higher prices and therefore would constitute a hidden ‘consumer tax’

of the connectivity sector and its infrastructure. For the

2.

It would jeopardize the EU’s sustainability objectives by

consultation, the EU asked various stakeholders to share

slowing down the transition to more energy-efficient

their views about the current situation and future of

cloud solutions

the electronic communications sector (e.g. cloud data

3.

storage, edge computing, artificial intelligence, virtual

It would threaten the EU’s digitalization targets by hindering CAPEX investments by CISPs

reality). However, the consultation was particularly

4.

It would distort competition in favor of large ISPs

controversial because it contained questions regarding

against smaller ones, as well as large content

the idea of large ISPs that big data and application

providers against their smaller competitors

providers should pay them internet traffic fees for the

5.

use of their infrastructure. Therefore, Cloud Infrastructure

THE EU ASKED VARIOUS STAKEHOLDERS TO SHARE THEIR VIEWS ABOUT THE CURRENT SITUATION AND FUTURE OF THE ELECTRONIC COMMUNICATIONS SECTOR.

It would allow telcos to further leverage their termination monopoly

Service Providers of Europe (CISPE), the trade association for IaaS providers in Europe, are concerned that this tax could have a negative impact on European companies and customers. In response, they published a position paper (free download) that contains the following five outcomes about the potential consequences of the Internet tax:

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ARUBA ACQUIRES TWO HYDROELECTRIC POWER PLANTS IN ITALY

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MICROSOFT LAUNCHES ITS FIRST DATACENTER REGION IN POLAND AS DEMAND CLOUD SERVICES IS GROWING

Microsoft announced the opening of its newest trusted cloud region, the first in Central and Eastern Europe, located in Poland. Microsoft’s Polish cloud region consists of three independent physical locations around Warsaw, each consisting of one or more data centers.

Aruba S.p.A, Italy’s largest cloud

It guarantees the highest standards of security, privacy

provider and leader in data center,

and regulatory-compliant data storage in the country.

web hosting, e-mail, PEC and domain

The launch of the Microsoft region is a continuation of

registration services, strengthens its

the company’s more than 30-year engagement with

renewable energy capacity with the

company in 2020 in Melegnano (MI),

Poland and a commitment to continue to support the

acquisition of two new hydroelectric

in Chiuppano, Calvene (VI) and in

country’s technological development of society, business

power plants in the province of

Pontebba (UD).

and the economy.

Centre in Ponte San Pietro, with a total

The entire network of Aruba’s

“Microsoft’s investment in Poland will accelerate our

capacity of 2MW.

hydroelectric power plants has a

country’s transformation into a technology hub for the

capacity of 9.2 MW for the production

Central and Eastern European region,” said Prime Minister

The new hydropower plants -

of clean energy and the expected

Mateusz Morawiecki. “Thanks to the development of

‘Paladina’ and ‘Ponte Briolo’ - share

annual output is approximately 50

energy production capacity in

the Polish Digital Valley, hundreds of engineers and

The opening of the Polish cloud region is in response to

the same water intake on the Brembo

GWh.

order to reduce the impact on the

developers will be able to play a key role in the global

the growing demand for high-performance computing

environment as much as possible

economy without leaving the country. This is responsible

(HPC) and fast and reliable access to Microsoft Cloud

Bergamo, near the Global Cloud Data

river and are joined by a private adduction canal. They join the plants

The

acquisition

new

and to make the activities of the

development,” Morawiecki explained. He added that in

services. The cloud is a crucial contributor to accelerating

that were already present within

hydropower plants is part of a

entire group sustainable. In addition

times of economic and geopolitical uncertainty, it is also

the digitization and developing digital competence of

Aruba’s Global Cloud Data Center -

broader strategy of the Aruba

to investment in hydroelectric

very important to maintain the highest standards of data

Polish businesses and the overall economy, as well as

also on the Brembo river - and the

Group, which intends to continue to

plants, Aruba are also continuing

storage security. “Building resilience in this regard is crucial

strengthening their resilience in times of economic and

further four ones acquired by the

invest and increase its renewable

investment in photovoltaic plants.

for the Polish economy and society,” said Morawiecki.

geopolitical uncertainty.

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of

the

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CAIXABANK PARTNERS WITH GOOGLE CLOUD TO DRIVE INNOVATION IN DATA AND ANALYTICS

CaixaBank, a Spain-based financial institution, announced a new strategic, multi-year partnership with Google Cloud to accelerate the bank’s transition to the cloud and drive innovation using data and analytics technologies. As a part of the agreement, the bank will leverage Google Cloud’s cloud computing, data analytics, and artificial intelligence (AI) capabilities to develop new services for its customers and drive the organization’s digital transformation.

The collaboration between CaixaBank and Google Cloud is a key element of the bank’s cloud-based strategy. This strategy is aimed at improving data analysis and leveraging AI and machine learning (ML) technology, since it is a key tool for driving the customization of the commercial offering and improving the relationship with customers. In addition, data analytics open up great potential in the decision-making process and the creation of new products and services.

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GOOGLE OPENS ITALY’S SECOND CLOUD REGION IN TURIN

Google has announced the opening of a new cloud region

Administration in accessing the cloud by providing greater

in Turin, Italy. The new region will serve as a strategic hub,

security and simplifying business continuity and data

catering to the needs of businesses and organizations

protection. In parallel, the Opening Future initiatives will

across Italy and the wider European region. With this

promote both the dissemination of digital skills in schools,

launch, customers can expect improved performance,

SMBs and start-ups in the territories and a sustainable

reduced latency, and enhanced reliability when utilizing

growth, with employment benefits and social and

Google Cloud’s services in the area.

economic repercussions.”

“With the availability of the Turin Google Cloud region, that

A growing ecosystem of technology partners will also

follows the one of Milan, the path that will allow Intesa

benefit from new Google Cloud regions in Italy. An

Sanpaolo to fully exploit the potential of cloud technology

independent study by the Digital Innovation Observatories

and further accelerate the process of digitization of its

and the Energy & Strategy group of the Milan Politecnico

services, is completed,” said Enrico Bagnasco, Executive

calculates that, thanks to the Google Cloud regions of

Director Information Systems of Intesa Sanpaolo. “A cloud

Milan and Turin, projects across the supply chain will

hyperscaler like Google with two regions on the national

generate a new market for partners estimated at around

territory will facilitate all Italian companies and the Public

€1.904 billion in the three-year period 2023-20252.

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Expert Insights

MICHAEL EUDCA

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A ONCE-IN-A-LIFETIME TRANSFORMATION IS UPON US As I sat down to write this article I thought about where our

Some of these regulations will be malformed and add

industry was two years ago and where we will be in the

cost to our business. Others will be used by regulators

next two. It is phenomenal how data centers went from

and planning officials to implement a NIMBY* agenda that

an unknown, misunderstood element of the IT market to

may please voters but will ultimately cost those voters in

headlining the news and in key legislation.

lost digital opportunities.

So let’s look at where we are going. First off, but by no

As I look at this I have a positive outlook. The European Data

means the most important issue, is that of a negative

Centre Association (EUDCA) can directly speak with EU

public perception. The world is changing and this concerns

officials and we have partnered with many National Trade

citizens. Data centers are a visible representation of the

Associations (NTAs) to share ideas and work together to

changing economy - Industry 4.0 is upon us. For most

better represent our members to governments. In reality,

in the industry this is exciting. It represents opportunity,

all governments want digitisation and sustainability. It is

growth and the ability to use digital technology to solve

our job to work together to show regulators that digitisation

so many problems in today’s physical world: sustainability,

needs clouds, 5G, AI, IOT and fiber optic networks. And

productivity, education, social mobility and more!

clouds, 5G, AI, IOT and fiber optic networks all need data centers to aggregate, store, process and trade data.

But, digital transformation will be disruptive. Automation,

Europe is committed to being climate neutral in a way

AI and rapid data center and cloud build out makes

that will be a beacon to other countries. Europe’s unique

people fear for their jobs, their cost of living, their ability

views on data and rights of citizens will also influence how

to enjoy their country. It is this that will drive our agenda

digital technologies develop globally.

going forward in two very important ways.

In the short-term, this may be frustrating and maybe even First off, the data center industry will be disrupted as well

costly. In the long run, we believe a regulatory environment

- the digital technology of the future is not compatible

can level the playing field for our industry and develop

with the data center of today. Technologically, we have

trust in the economic value of the buildings and IT we

to do a full root and branch relook at what is a data

are investing in.

center and how it operates. As operators, we will need to rethink both our designs and how we interact with a

Biography

smart, renewable energy grid.

Michael Winterson joined Equinix in September 2007 through the acquisition of IXEurope where he was part

WINTERSON 88

However, it is the broad level of local, national and regional

of the founding leadership team. Now Managing Director

regulations that will be a game changer. We are being

for Equinix Services, in addition to being Vice President for

regulated and treated like a utility. This will mean meeting

Business Development, Michael has held many roles at

stricter standards; measuring and managing ever harder

the company. Since 2016, he is Chairman of the European

targets; and transparently reporting to myriad of agencies.

Data Center Association (EUDCA).

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FRANCE AS EUROPE’S DIGITAL BRIDGE Following the rise in prominence of the French data center market, France Datacenter has become a force in the European data center industry. “Established in 2008 and reorganized in 2017 with an expanded team, we recognize the importance of addressing the perception challenges faced by the industry”, says Géraldine Camara, managing director.

WRITTEN BY MICHIEL VAN BLOMMESTEIN

The data center market in France has experienced

we are sometimes considered a Southern European

significant growth over the past three years. The industry is

market.” The northern part of France is only a little bit

set to witness a consistent 10 percent growth in the coming

more southern than Frankfurt, and there are also hubs in

years as well, and especially the Paris data center hub is

other parts of the country -like Bordeaux and especially

often named in one breath with other leading European

Marseille- that offer connectivity access to other parts

locations, including even Amsterdam and Frankfurt. The

of Europe and Northern Africa. “So our location is better

location and size of the country have been important

described as being central.”

factors in that success, Camara said. “It’s a little funny

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Bridging the gap between the data center industry and media

Under its 13 member board and Camara’s operational leadership, France Datacenter has grown to around 100 members, comprising of architects, vendors, operators and other key industry players. The board consists of the presidents of Data4 group, Equinix, Digital Realty, Global Switch and CBRE, to name a few. “One of our primary objectives is to provide members with technical expertise and insights into industry trends,” Camara explains. “We organize several annual events, including two events in Paris and two in specific regions.” Through various publications, France Datacenter disseminates valuable information on topics such as cooling techniques,

This is especially vital considering the active stance

commissioning procedures, and heat recycling.

taken by the French government on themes concerning

“Furthermore, we take on the responsibility of bridging

sustainability, Camara says. “We are being challenged

the gap between the data center industry and the media

by the French government to continue to improve our

by explaining the significance of data centers in powering

PUE, lower consumption, find the best solutions and come

smartphones and IT applications.”

up with innovations like recycling heat.” Lastly, France Datacenter aims to enhance the competitiveness of France’s data center industry in general.

Camara outlines four key priorities for the data center industry in France from 2020 to 2025. The first priority is focused on employment and training, as the industry faces

Regarding regulations, France Datacenter is actively

a shortage of qualified personnel, as is the case in the

involved in mapping the current regulatory landscape,

rest of Europe. “France Datacenter aims to address this

both within France and across Europe. “Directives related

challenge by establishing a commission that is thinking

to energy consumption reporting, heat recycling, and

about specific training to attract and nurture talent,” she

energy efficiency, such as ISO 50001 and membership in

explains. “Yes, it may be a digital industry, but it still needs

codes of conduct, are being discussed and implemented”,

human resources and the interest of young talent.”

Camara says. The association acknowledges that these regulations present positive challenges and lead to

The second priority she names is resilience, with a

increased efficiency and performance within the industry.

particular emphasis on cybersecurity and safety measures

On the whole, Camara thinks the industry’s future in France

such as fire prevention, in order to ensure vital industries

looks bright. “Both Marseille and Bordeaux are getting new

access to data and IT. Innovation for environmental

submarine cable connections, and especially Marseille

sustainability, including energy consumption control

is a true gateway to Africa and further east,” she says.

and circular economy practices, is the third priority.

“We offer favorable climate conditions that enable free cooling for approximately 80 percent of the year. France’s market is driven by factors such as population density, connectivity, and the perception of being a vital growth market for hyperscalers in the near future. By prioritizing employment, resilience, innovation, sustainability and competitiveness, the association is proactively shaping the future of the sector “with a diverse team and a keen focus on inclusion,” Camara says.

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Choose Facts & Figures

Choose Facts & Figures

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Leading organizations from our industry publish various reports about trends, investments and more. In this section, we chose the must read reports and whitepapers and selected the main highlights for you.

CHOOSE FACTS & FIGURES

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STATE OF THE DUTCH DATA CENTER 2023: THE FACT OF THE MATTER

Choose Facts & Figures

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CBRE EUROPE DATA CENTER FIGURES Q1 2023

The Age of Enlightenment popularized the use of reason to pursue

CBRE has published its quarterly report about the European Data

knowledge, resulting in a society based on logic and science instead

Center Market for the first quarter of 2023.

of relying on emotions and doctrine to make decisions. However, the fundamentals of enlightenment are at stake as decision makers

In the most recent publication, they found that Europe’s top colocation

become increasingly influenced by emotions rather than reason,

data center markets are poised for another year of considerable

which affects the data center industry. As a result, the basis of the

growth despite economic uncertainty in Europe and declining growth

legislation is the most controversial headline and the accompanying

of the hyperscalers cloud operations. Furthermore, CBRE expects a

emotions, with rules and regulations that do not align with the sector’s

substantial increase in supply in the second half of the year with

realities. This makes it increasingly difficult for the data center sector

mega facilities that will be delivered in Paris and Frankfurt.

to implement positive and sustainable changes.

However, the higher cost of capital, labor and power shortages, and The 9th edition of State of the Dutch Data Centers Report focuses on

long equipment lead times across Europe will make the delivery of

presenting the facts of the data center industry in the Netherlands.

projects more difficult with profitability harder to ascertain.

The facts and figures are essential for government agencies to make informed decisions about data centers. For example, the research

All the Facts & Figures from the CBRE Europe Data Center Industry

shows that in 2023, 99% of all energy consumed by colocation data

can be found on their website.

centers comes from green sources, compared to 90% in 2022. A small portion of that comes from Dutch wind and solar power.

You can download the full report via the website of the Dutch Data Center Association.

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FRANCE DATACENTER BAROMETER

Choose Facts & Figures

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Projected investment in data centers in France To sustain growth, the French data center industry will invest over €12 billion1 over the next 10 years, with a strong concentration in the Paris region.

Estimated direct investment and expenditure in data centers in France (CAPEX), 2022-2033)

1244

The France Datacenter barometer, produced with EY-Parthenon,

1121

provides an overview of the datacenter industry in France.

There are almost 250 data centers in France, and despite their wide

879

geographical distribution, they concentrate their power in the Ile de France and South-East regions. +4%

Map of the geographical distribution of the 250 data centers.

Lille Rouen

>30% Rennes 10-30%

Nantes

2023 Strasbourg

Paris Dijon Tours

5-10%

2028

2033

1. Estimated price €10m per MW built, excluding server, land and connection

The first France Datacenter / EY-Parthenon barometer shows a fast-growing industry that is investing, hiring and helping to reduce

Lyon

energy consumption.

Bordeaux Toulouse

<5%

Marseille

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MEET THE NEW MD OF DIGITAL REALTY NETHERLANDS Since February 2023, Vincent in ‘t Veld (49) is the new managing director of Digital Realty Netherlands. In conversation with Datacentered he speaks about his new role and the ongoing developments of the organization.

WRITTEN BY PIM KOKKE

“Is it already 100 days?”, asks Vincent in ‘t Veld, managing

expectations for the day, but in the most positive manner

director of Digital Realty Netherlands at the start of the

as this new position is very dynamic with customers,

interview. “These first hundred days have flown by as no

partners, finance and HR. It is indeed different from my

single day has been the same so far and ended differently

previous positions within the organization.

than you had expected. That is why I stopped having

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PHOTO BY SANDER VAN DER TORREN

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A maturing industry

Global positioning

Vincent joined Interxion in 2008 and fulfilled various

In order to keep up with this, a state-of-the-art digital

global functions in product management, marketing and

infrastructure is important for the growth of all markets. For

business development. Until February 2023, he was Senior

example, the FLAP-D region (Frankfurt, London, Amsterdam,

Vice President (SVP) for the Service Provider business unit

Paris and Dublin) is considered as one of the major data

globally. During these 14 years, he experienced closely

center markets in Europe while other traditional tier 2

the transformation of Digital Realty and the data center

markets like Madrid, Milan, Zurich and Marseille are growing

industry. “It is a large operation as we see continuous

even more rapidly. “Amsterdam is seen as one of the most

developments and growth. For example, the number of

important digital exchanges for Europe, thus being a main

data centers, capacity and the construction projects

hub in our industry in the last 25 years. Our sea cables,

around it. Our organization matures also. When I joined

business climate and highly educated people who are

the company we were about 300 people globally, now

very proficient in English have led to this position. Now,

we are with over 3,000 employees worldwide of which 150

we are getting to a point where those infrastructures are

at Digital Realty Netherlands. So all these developments

being distributed much further and closer to the user. This

and growth bring new challenges with it.”

is needed because of the performance that is required

Fortunately, these challenges are not new for the data center industry and the forecasts for the sector are still positive. According to the International Data Corporation (IDC) and World Economic Forum (WEF), the amount of data will grow 3-5 times in the next 3 to 4 years.

Furthermore, the sources of data are also expanding;

“

for new applications. Moreover, we see a more wide-spread and

EXTRACTING INSIGHTS FROM DATA RELATED TO ENERGY CAN HAVE A POSITIVE IMPACT FOR THE ENVIRONMENT.

balanced market with the rise of Madrid and Rome.”

At this moment, Digital Realty has over 300 data centers worldwide.

“We are a digital infrastructure facilitator thus contributing to the digital economy and society. And since we are active in over 50 cities globally, we are constantly at the concentration of people,

from machine learning to public/private cloud. “However,

networks and economies. For example, research has

when you look at what is actually being used and analyzed

shown that in the upcoming decades five of the ten

from that data, it is still very limited. Only a few percent

most populated cities will be based in Africa. Their digital

of the total information that is created from which value

infrastructure is growing and they have the advantage

and insights can be extracted to improve, for example

that most countries will start with the newest 5G networks,

products, services and processes, is used. Therefore, the

instead of GPRS or EDGE. At Digital Realty we have built

rat race is now on-going to extract value from data in

a presence in Africa over the past few years with active

order to gain competitive business advantage. If you

operations in Nairobi and Mombasso in Kenya, Lagos

look at it from a societal perspective, extracting insights

in Nigeria and through our acquistion of Teraco in

from data related to energy can have a positive impact

Johannesburg and Cape Town in South Africa. Our global

for the environment.”

platform continues to grow and expand to service the ever growing global needs of our customers.

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Always exploring the internal and external value chains

Future goals The future for the industry and Digital Realty remains

As mentioned above, in ‘t Veld was SVP in which he

clear. “Over five years, I expect that we will continue to

was exploring and developing long-term strategies.

grow as an organization; from people to square footage.

He mentions that in this industry - as with any other

Digitalization will expand and the pressure on areas such

industry - decision-making, differentiation and making

as sustainability, the demands of our customers and

fact-based choices are key. So in that way, he already

the quality will grow. Therefore, we have to continuously

had some experience which led eventually to him being

keep doing our utmost in these areas. As Digital Realty

appointed as managing director. “I always had the need

Netherlands, we are pretty far along in that, and Digital

to manage more generally and be more broadly active;

Realty Global is investing a lot in new initiatives. But one

from client to account. Furthermore, I feel involved in all

of the trajectories we are on is being able to measure

aspects and sometimes I do get too inquisitive and look

the sustainability of our solutions and have a positive

for information and insights to understand the internal

long-term effect on the sustainability of our planet. So

and external value chains.”

how can we be sustainably functional as an industry?

That will be at the core, which will positively impact the

But how did he respond when he heard the news of

increasing maturity of our data center industry.”

becoming MD? “It felt good straight away, but I also knew that it was going to be challenging and had to built confidence on the job. My predecessor Michel van den Assem was active here for over 23 years and I have a lot of respect for him. I have always worked fairly closely as I had worked closely with Michel on several projects. My

Interview

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“

I FEEL INVOLVED IN ALL ASPECTS AND SOMETIMES I DO GET TOO INQUISITIVE AND LOOK FOR INFORMATION AND INSIGHTS TO UNDERSTAND THE INTERNAL AND EXTERNAL VALUE CHAINS

two children, who are 18 and 20, were also involved and interested but they are of course busier with their own lives (he laughs). My wife was a little skeptical because she thought I would miss my previous global role in which I travelled from North America to Asia and worked with some many different cultures and in different markets which was always highly inspiring. But in my first hundred days, she sees that I sing and whistle a lot at home - which is an important indicator for me - and I get up easily in the morning.”

Vincent in ‘t Veld (1974) Born and raised in Rotterdam

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1991-1995

MSc Economics, Hogere Europese Beroepen Opleiding (HEBO) (European Studies) at Haagse Hogeschool

1991-1992

Economics (Master’s degree) at Universität Paderborn

1995-1999

Key Account Manager at KPN

1999-2002

Senior Product Manager art KPNQwest

2002-2008

Head of Mobile Data Services at BT Global Services

2008

Joins Interxion as Director Strategy and Business Development

2016

Becomes VP Cloud & Content Platforms at Interxions

2021

SVP Service Providers & Market Strategy at Digital Realty

2023

Managing Director Digital Realty Netherlands and Regional Lead Northern Europe

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Expert Insights

STIJN DUTCH DATA CENTER ASSOCIATION

Expert Insights

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THE IMPORTANCE OF FACTS IN DECISION-MAKING AND LEGISLATION In the Age of Enlightenment, reason and science were

develop informed and effective solutions that align with

championed as the foundation for knowledge and

the realities of the industry and the needs of society as

decision-making. However, in today’s society, there seems

a whole.

to be a departure from these fundamental principles.

Emotion increasingly influences decision-makers, resulting

Facts matter because they provide a solid foundation for

in a concerning trend that affects various industries,

decision-making. They help avoid the pitfalls of knee-jerk

including the data center sector. The consequences

reactions driven solely by emotional responses. By

are evident as legislation is often crafted based on

embracing facts, decision-makers can craft legislation

controversial headlines and accompanying emotions,

that accurately reflects the challenges at hand, enabling

rather than a rational assessment of facts. This approach

effective solutions and positive change. Additionally, basing

creates rules and regulations that fail to align with the

legislation on facts fosters transparency, accountability,

realities of the data center sector, making it challenging

and fairness, ensuring that all stakeholders are treated

to implement positive changes.

equitably.

One of the primary responsibilities of the government

In conclusion, the principles of the Age of Enlightenment,

is to ensure that society functions optimally, promoting

which emphasized reason and science, remain as relevant

fairness and providing equal opportunities for all. However,

today as they were centuries ago. The data center sector

when decisions are made without considering the facts,

serves as an example of the consequences of straying

the playing field becomes uneven. A notable example

from the importance of facts in decision-making and

of this imbalance can be seen in the portrayal of data

legislation. It is vital for the government and policymakers to

centers as excessive water consumers. Despite the

prioritize facts over emotions, leveraging evidence-based

reality that data centers use considerably less water

approaches to develop legislation that addresses the

compared to many other industries in the Netherlands,

real problems society faces. By doing so, we can ensure

they are frequently singled out by the government and

a fair and prosperous future for all.

politicians for their water consumption. Unfortunately, this approach disregards the impact of higher water

Biography

consumers, diverting attention from the real issues and

Stijn Grove immerses himself daily in the heart of the Dutch

hindering progress. Consequently, organizations with

digital economy. As the director of the Dutch Data Center

more significant water consumption are restricted to a

Association, he represents the data center sector of the

lesser extent, failing to address the genuine problems.

Netherlands. At the same time, he encourages foreign parties - ranging from multinationals to start-ups - to

GROVE 106

To effectively address the pressing challenges faced by

establish themselves in the Netherlands and make use

our society, such as energy grid congestion, low water

of our stable digital network. In his role as director of the

reserves, and inflation, it is crucial to rely on facts as the

digital mainport organization Digital Gateway to Europe,

basis for legislation. Emotions, while important, should not

he also acts as an ambassador for the digital sector of

dictate the decision-making process. By acknowledging

the Netherlands, reaching far beyond our national borders.

and incorporating factual information, policymakers can

107

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Break the Framing with Facts

Break the Framing with Facts

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BREAK THE FRAMING WITH FACTS A recent study of the Fontys School of Journalism about media framing and data centers indicates that an open and transparent debate is needed in order to challenge the assumptions about data centers.

ARTICLE WRITTEN BY PIM KOKKE RESEARCH BY DANIËLLE ARETS, CEES-JAN PEN, BART WERNAART & KEES VERHOEVEN

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Break the Framing with Facts

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The Netherlands is Europe’s digital hub, or at least so we read in the coalition agreement. But the way the current discussion about data centers is conducted, that hub seems more like a Bermuda Triangle; a devil’s triangle in which arguments seem to disappear and mystifications prevail. If the Netherlands wants to manifest itself as a digital frontrunner, we need to conduct the political and journalistic debate about our data infrastructure with the right facts and figures.

The paragraph above is one of the main conclusions from a recent study by the Fontys School of Journalism, a Dutch University of Applied Sciences. In the study, researchers Dennis Boom and Emma van Nuland analyzed

Energy efficiency

how four major Dutch newspapers (De Volkskrant, Trouw,

According to the researchers, there are three themes

De Telegraaf and AD) reported on ‘data centers’ over

that dominate the journalistic reporting around data

the past four years (April 28, 2018 - April 28, 2021). It turns

centers: data centers in relation to energy use, data

out that the theme is only sparsely covered. In total, AD

centers and spatial planning, and data centers linked

mentioned the topic 46 times and De Volkskrant in 25

to the economic added value for the region. However,

articles. At Trouw and De Telegraaf, after careful reading,

those themes are not always highlighted with the right

only 36 articles remained.

data and, in the case of De Telegraaf and Trouw, are mostly written with a negative framing. De Volkskrant

However, the storage and supply of data in data centers

The researchers were supported by their supervisors

and AD are more balanced in their expressions. None

is more efficient than when companies organize their

Daniëlle Arets, Cees-Jan Pen and Bart Wernaart.

of the newspaper articles highlight other perspectives

storage individually. Furthermore, the study shows that

Kees Verhoeven, former member of the House of

on data centers, such as the relationship to policy and

data centers have worked hard in recent years to become

Representatives (in Dutch: Tweede Kamer) and advisor

governance or our own data behavior.

more energy efficient. For example, The International

two years earlier. He outlines that this paints a distorted

Energy Agency (IEA) calculated that the electricity

picture because many companies that manage data

Digital Transformation of the Dutch Data Center Association, supported the study. Arets: “Because of

Many articles about data centers refer to the massive

consumption of data centers between 2010 and 2018

in-house now do so at data centers. In another article,

the sparse media coverage, it is not surprising that the

amount of energy that data centers use. For example,

grew by only 5 percent worldwide, while our data traffic

Van de Weijer refers to a study by Science that calculated

theme is also greatly underexposed on the political and

the word ‘energy guzzler’ occurs in articles. A data center

grew tenfold and data storage grew 25 times.

that data centers use less energy than expected. Energy

policy agendas. For example, a related analysis about

has one purpose: to ensure that computer servers with

the party programs for both the municipal and provincial

digital applications are always running, 365 days a year,

The researchers found that this fact is only sporadically

elections showed that political parties barely mention the

7 days a week, 24 hours a day. The temperature is always

highlighted in journalistic articles. For example, in a

theme of data centers. Only in the Province of Zeeland

24 degrees, so the equipment remains cooled day and

balanced and well-supported article in De Volkskrant,

And yes, there is definitely a need to critically monitor the

some parties refer to data hubs, but mainly in a negative

night and does not become overloaded. Simultaneously

journalist Van de Weijer refers to Statistics Netherlands

energy consumption of data centers but more in a sense

sense as ‘large electricity users that add nothing to the

keeping the servers running and cooling them consumes

(CBS) figures, which calculated that data centers use

that we need to use the right data and, most importantly,

Zeeland economy.’”

around 3.7 billion kilowatt hours (TWh) in 2021.

a total of 2.7% of all electricity in 2019, 66% more than

look at where or by whom that data is generated.

110

conservation and more efficient computers have made data centers 20 percent more efficient annually.

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Break the Framing with Facts

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Data explosion According to the study, not a single journalistic article refers to the role of consumers, nor to companies and

‘David versus Goliath’

Integral approach is missing

institutions using more and more data. This with the

The economic value of data centers is, according to the

According to the researchers, the government is finding

exception of an opinion article that was submitted by

researchers, the most complicated in the data center

it difficult to grasp that governing role. In the Spatial

Kathalijne Buitenweg and Richard Wouters of GroenLinks

debate. Many journalistic articles refer to the limited

Strategy for Data Centers, drawn up in 2019 by the

in De Volkskrant. They wrote: “With data making a growing

economic added value because, relative to the square

Ministry of Economic Affairs, providing space for data

demand on energy and raw materials, it is necessary to

meters, only a small number of people work in a data

centers is considered necessary to safeguard the digital

think more carefully about the social usefulness of all that

center. However, this is not a valid argument. Data centers

infrastructure of today’s digital economy. The coalition

data. Especially since innovations like 5G and artificial

do add direct employment value and drive the digital

agreement also writes about the importance of data

intelligence could lead to a real data explosion.”

economy. For example, all data centers combined directly

centers for the international economy. But where that

employ more than 5.400 full-time equivalent (FTE), and

space should be made and what conditions it should

Arets: “It’s a valid argument as we have become

indirectly more than 12.000 FTEs. That is an increase of 3%

meet, remains unmentioned.

accustomed to always being able to access information

compared to last year. The continued strong growth in the

online and store files endlessly. The Dutch Consumer

hyperscale market was counteracted by a slight decline in

Meanwhile, the problem is being passed on to provinces

and Market Authority calculated that we will consume

the enterprise sector and moderate growth in colocation.

and municipalities that are struggling with a huge

346 petabytes of mobile data in the third quarter of

The enterprise sector still employs almost half of all

shortage of business parks and, more generally, space.

2021; 31 percent more than a year earlier. It is expected

data center FTEs (48%). Employment in enterprise data

that -against the context of new AI driven services, and

centers is slowly decreasing

the introduction of more smart data-intensive devices,

cultural landscape. “We created a crushingly beautiful,

as enterprise data centers

our data usage will explode. Therefore, Buitenweg and

unique and rich spectrum of cultural landscapes on

continue to consolidate and

Wouters advocate the introduction of data limits, which

clay, peat and higher grounds. We inhabited terps, we

workloads move into the

would limit the data use of consumers and businesses.”

reclaimed peat, we allowed new land to silt up, and we

cloud. However, over the next

made polders. We are now destroying that in a generation,

five years, a decline of 2% per

In the analyzed media, however, data behavior and data

to make way for a new cultural landscape of boxes,

year is expected.

reduction in relation to data centers is not discussed. In

greenhouses, data centers, solar farms, windmills and

doing so, we shortchange the debate to the following

noise barriers.”

statement: no we don’t want energy guzzlers, but we very

The three themes mentioned

“

The City of Amsterdam decided in 2019 to impose a moratorium on data centers, but had to change that ban a year

MANY ARTICLES REFER TO THE LIMITED ECONOMIC VALUE

culminated in articles about

much want fast Internet.

later. New data centers are now allowed in places where there are already establishments. When you look at the provinces and their own data center strategy, North Holland was the first province with its own strategy in which both the advantages and disadvantages

Geuze makes a distinction between boxes and data

Meta coming to the Netherlands. Last year, Facebook’s

of data centers in relation to energy and space are

centers, by referring the so-called boxes to the distribution

parent company wanted to build a hyperscale data center

mentioned.

Shift in cultural landscape

centers that are rapidly appearing in the Netherlands.

near Zeewolde. The planned data center, measuring

Another theme that comes up in several articles about

Currently, there are some 9,000 distribution centers

166 acres, faced a storm of criticism. In the study, many

In recent years, the Province of Brabant, began to adopt

data centers is that data centers are considered as

occupying a total of 40 million square meters. The PBL

journalistic articles referred-with metaphors such as ‘David

a more selective policy on “the doom” with various

‘unsightly gray boxes’. According to the study, one article

report also points on withering to both data centers and

versus Goliath’ (De Telegraaf) to describe the tech giant

municipalities. Earlier this year, a ‘preparatory decision’

in Trouw addresses for example this issue in which

distribution centers.

that would “take over” the polder landscape. According

was made prohibiting the establishment and development

to the study, this “take over” refers to the use of energy

of large-scale logistics throughout Brabant, with the

investigative journalist Joop Bouma discusses the report Care for the Landscape by the Netherlands Environmental

Yet, in many journalistic articles both are lumped together.

but also to the economic and power position of big tech

exception of locations on which the province has made

Assessment Agency, which warns of the landscape’s

But for the sake of purity of the debate, it is good to

companies. For example, the articles framed Meta as a

agreements with municipalities. There is no separate

withering away and calls for more government direction.

approach data centers and distribution centers separately

company that would “mainly take our energy and land,

mention of data centers. This is strange because when

“Is this the landscape we want?”, asks Bouma.

because they serve different purposes, especially in terms

but hardly provide economic profit and/or employment.”

it comes to facilitating the growing demand for data,

of economic added value.

Meta eventually decided to stop the project. Arets: “The

data centers have their own policy.

In another article in Trouw, landscape architect Adriaan

discussion addresses an important topic: how do we

Geuze fulminates against data centers as a many-headed

govern Goliaths like Meta as well as other data centers?

monster that is gradually destroying the unique Dutch

And who is actually David here?”

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Decision-making is now primarily taken from a spatial planning perspective, which means that other aspects remain underexposed. The Rathenau Instituut, for example, published last year an special

If we start seeing data centers as a

Parliamentary report on data centers

basic utility, it might also help move

integral policy strategy.

the debate forward. After all, when it comes to transmission towers - not

That integral approach is missing

a pretty sight in the landscape - the

from the political debate as well

discussion does not seem nearly

as from journalistic reporting on

as fiercely divided as around data

data centers. Therefore, a broader

centers.

perspective on balancing spatial, economic, sustainable and political

In sum, it would be desirable if the

issues is needed. The latter is also

debate, the framing and reporting is

acclaimed by the Rathenau Institute

initiated on a broad social discussion

that asks how we want to construct

about our future with data centers,

our digital infrastructure.

based on facts and figures and far

Data centers as basic utility

away from assumptions and gut feelings.

This question is relevant, but is only briefly mentioned in one article: an essay in Trouw which was submitted by dr. ir. Martijntje Smits. Smits argues for seeing data companies as utility centers, and thus thinking more carefully about their social usefulness and necessity. An argument that is also mentioned in the Rathenau report; “For although the digital infrastructure is almost entirely in private hands, it now also has characteristics of an essential utility.”

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Expert Insights

Expert Insights

NIEK

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THE EU GREEN DEAL HOW CAN YOU IMPROVE IF YOU DON’T MEASURE?

LEGRAND

The goal is clear for us as individuals and businesses

understanding and improving this class of data center.

– we have to change the way we use the earth’s finite

After all, these are the data centers (>100 KW) with huge

resources. That means using energy that doesn’t pollute

potential to improve by measuring only the basic KPIs. PUEs

the environment, doesn’t produce greenhouse gases and

of over 2 are not uncommon and massive improvements

doesn’t deplete scarce natural resources.

can be made just by raising awareness.

There are many ways to achieve these environmental

The non-public reporting obligation on server utilisation

goals on the road to Net Zero, but to understand if we

is one of the other very interesting proposals for the

are going in the right direction, we first need to establish

EED. This forces IT and infrastructure to work together in

a baseline. How much energy are we using now? How

collecting data. This can be across company borders

much of this energy comes from renewable sources?

and will involve multiple disciplines. It is often suggested

How much water are we using, and what is the impact

that server utilisation is not the best proxy for resource

of this water usage?

efficiency improvement, but I can guarantee that with measuring and reporting this discussion will be re-visited.

The good news is that, when it comes to measurement

When you’re ready to take the next step, after gaining

standardisation, much of the work has already been done

insight by obtaining the KPIs, evaluate them and measure

over the past decade. We’ve created a comprehensive set

how much progress you have made – what level of

of KPIs and captured them in EN and ISO/IEC standards.

sustainability maturity you have achieved.

All you have to do is grab these documents, choose the relevant KPI implementation and project it onto your

The original Maturity Model of the Green Grid is laid out in

data center. Start measuring and, a year later, here are

an EN Technical Specification (50600-5-1) and has been

the results!

updated annually. The framework provides an extensive set of recommended practices originating from the EU

And such action is the precise intention of the proposed

Code of Conduct, represented in a clear spider diagram.

changes to the EU Energy Efficiency Directive (EED) –

By implementing the model, the benefits will become

measure and report. The reporting is a vital part of the

clear over time.

intended outcome of the directive changes. Without

VAN DER PAS 118

communication, there will be no awareness of any data

The first step is measuring and reporting. The second

center variations, making improvement harder to achieve.

step is acting and improving. But be realistic. Lowering a PUE from 1.2 to 1.15 can be a laudable but very complex

Personally, I am not a fan of the latest proposal to increase

goal, while a software refresh cycle might give the same

the reporting threshold from 100kW to 500kW installed

kWh gain with much less effort. Measure, communicate,

IT power. I think this is a missed opportunity in terms of

collaborate and the results will come.

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Energyy Market Update

Energyy Market Update

Datacentered

ENERGY MARKET UPDATE

Stroomkr8 is an independent energy consultancy company. They support their clients on all kinds of energy sourcing activities, from strategic/conceptual matters to daily and operational practice. They buy and sell energy for their clients in 17 different countries with a team of highly experienced colleagues within both supply companies and consultancy.

More information: www.stroomkr8.nl

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Energyy Market Update

Energyy Market Update

Datacentered

After years of relatively stable prices on all energy

Although the Russian invasion had a major impact, the

commodities, the energy world has changed

Power & Gas Futures

market started to change already one year before. The

So far, 2023 has been favourable for companies that have

reduced. Due to the reduced demand it was also much

significantly last year. The Russian invasion in Ukraine,

overall demand was increasing and another important

not hedged positions during the 2022 price peaks. This

easier to maintain gas storages on comfortable levels. In

and consequently the European ban on Russian gas, has

factor was the impact of renewable energy and pressure

was expected after the almost unrealistic price levels of

the graph below this is clearly visible as we are already

forced Europe to review their energy supply strategies

on non-sustainable power generation. Coal power plants

last year. During the first months, the biggest worry for

20% ahead of 2022 storage levels, which will secure fully

to a completely different supply model. Last year, the

were forced to close, Germany nuclear power plants are

cold winters and supply issues during January/February

filled storages for the upcoming winter.

uncertainty and fear for supply interruption and even

closing and the overall renewable production is increasing

reduced because of warm weather, which had a double

outages pushed prices beyond any thinkable level.

fast, causing a much more volatile and asynchronized

effect on the energy futures. Not only did it show that

The reason we see this as an important fundamental for

Luckily, markets calmed down since the peak in August

supply and demand profile compared to the traditional

even with an almost total cut of Russian gas through the

power cost development and for data centers to follow,

2022 and although they are still not on the level fromf 2

fossil/nuclear generation. This requires more flexible (and

traditional pipelines we were able to fulfil our needs, the

is the fact that the majority of today’s Power generation

to 3 years ago, markets are looking for ‘The New Normal’.

more expensive) generation assets. These developments,

continued availability of supply and decrease of demand

in the Netherlands (beside wind and solar) is coming

combined with further strengthening CO2 reduction

(due to less cold and demand destruction because of still

from flexible gas driven power generation. The price of

targets and plans to change the current EU Allowances

relatively high prices) resulted in high gas storage levels.

gas still shows a strong correlation between power on

(EUA) certificate scheme, create a whole new energy

This had not only a positive result on the spot prices, but

both spot and futures markets. Therefore, we are closely

landscape throughout Europe.

also on futures as the risk on supply issues

following the gas markets and see this as one of the most important price fundamentals at this moment.

GAS STORAGE INVENTORY EU

NL Y+1

GE Y+1

FR Y+1

122

UK Y+1

123

02 01 3 -0 320 23 01 -0 420 23 01 -0 520 23 01 -0 620 23

3

02 -2

01 -

-2 02

02 2

01 -0 1

-2

01 -1 2

01 -

11-

20 2

2

22

2

-2 0

02

10

01 -

92

-0

20 22

01

2

8-

-0

-2 02

01

22

-0 7

620

01

01

-0

2

520

02

-0 01

220

01

-0 01

ja

nf e 21 bm 21 rt ap 21 rm 21 e iju 2 1 n2 ju 1 l2 au 1 gs e 21 pok 21 tno 21 vde 21 cja 21 nf e 22 bm 22 rt ap 22 rm 22 e iju 2 2 n2 ju 2 l2 au 2 gs e 22 pok 22 tno 22 vde 22 cja 22 nf e 23 bm 23 rt ap 23 rm 23 e iju 2 3 n23

1-

€0

-0

20 2

2

22

€ 200

22

June ‘23 : 69%

42

€ 400

June ‘21 : 50%

20 22

change

levels

Ukraine

-0

€ 600

Start market

Current price

Russian invasion

01

€ 800

3-

€ 1.000

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

-0

Power forward market Y+1 (EU)

€/MWh

€ 1.200

Current gasstorage

Gas Storage inventory EU ahead of ‘21 levels

01

POWER FORWARD MARKET Y+1 (EU)

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Energyy Market Update

NL Y+1 MARKET

Energyy Market Update

Datacentered

Future contracts EUA’s

NL Y+1 market

€/MWh

€ 1.200 € 1.000

Another important driver for power prices is the

determine clean spreads for power generation. This

increasing cost of CO2 (EUA) certificates as required by

consequence is something to keep in mind for the coming

the non-sustainable power generation plants. Although

year as this effect might become more and more a price

the scheme is in place for several years now, the price

increasing pattern. After March, prices of EUA corrected

has increased year-over-year (YoY) as the amount of

because of the decreased demand to submit certificates.

free/available certificates has decreased over the years

On top of the steady price increase, the European Union

€ 800

leading to significant price pressure until March as the

has proposed to change the EUA scheme to reduce

€ 600

deadline for the 2022 EUA obligations expired. The reason

the amount of free certificates even further for energy

€ 400

for this is that all companies that are part of the scheme

intensive industries. The final decisions on this matter are

have to fulfil their obligations. This had a direct impact

expected in the coming weeks/months.

€ 200

on power prices as well, considering gas and CO2 prices

€0 feb ‘22

mrt ‘22

apr ‘22

mei ‘22

jun ‘22

jul ‘22

aug ‘22

sep ‘22

Power Y+1

okt ‘22

nov ‘22

dec ‘22

jan ‘23

feb ‘23

mrt ‘23

apr ‘23

mei ‘23

jun ‘23

EUA

Gas Y+1

The Power Forward Market graphs for Europe and the Netherlands also clearly show the downward rally since the record prices from summer 2022. Current price futures move around € 110 and

EUR/Tonne

€ 130. These prices are still higher than 2-3 years ago, but much more acceptable/explainable

€ 120

to customers and far less volatile than last year.

2021

2022

closing deadline

closing deadline

€ 100

“

THE PRICE OF GAS STILL SHOWS A STRONG CORRELATION BETWEEN POWER ON BOTH SPOT AND FUTURES MARKETS

124

€ 80 € 60 € 40 € 20 €0 ja n2 fe 1 bm 21 rt ap 21 rm 21 ei ju 21 n2 ju 1 l2 au 1 gse 21 pok 21 tno 21 vde 21 cja 21 n2 fe 2 bm 22 rt ap 22 rm 22 ei ju 22 n2 ju 2 l22 au gse 22 pok 22 tno 22 vde 22 cja 22 n2 fe 3 bm 23 rt ap 23 rm 23 ei ju 23 n23

jan ‘22

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Energyy Market Update

Renewables and impact Spot prices

Energyy Market Update

Datacentered

Depending on the energy strategy data centers might only be exposed on

As mentioned, renewable energy production is still growing

than in 2022 (~80 hrs) in total as production of wind and

the spot market for a limited amount and therefore have limited advantage

rapidly in Europe thus impacting supply and price levels

solar installations exceeds demand. In the graph below

on this. But given the increase in solar production, it is likely that in the coming

as demand does not follow supply 24/7. Looking in more

the increase of solar is clearly visible, growing almost

years this will increase YoY, which will form our estimate to influence future

detail for the Netherlands, last year the Dutch energy mix

1000MW/YoY. This also resulted in a remarkable situation.

peak prices, especially on Q2/Q3 future products. Combining this development

consisted of ~16 % renewable energy. This increase of

We now often see that peak prices are lower than off-peak

with the increasing cooling demand and thus power consumption of data

installed capacity, so far in 2023, has led to more negative

during Q2/Q3, as during the nights fossil installations take

centers, there might be an opportunity when closing your energy positions

price hours (+100hr) on the spot market

over production for demand.

for Q2/Q3.

SOLAR PRODUCTION NL 2017-2023

SPOT, YEAR, SEASON PRICE LEVELS Spot, year, season price levels

€ 180 € 160 € 140 € 120 € 100 € 80 € 60 € 40 € 20 €-

MW

4.500 4.000 3.500

vs spot ‘23

-0 02 5-2 -0 02 03 5- 3 -0 20 04 5- 23 -0 20 05 5- 23 -0 20 06 5- 23 -0 20 07 5- 23 -0 20 08 5- 23 -0 20 09 5- 23 -0 20 10 5- 23 -0 20 11- 5-2 23 05 02 12 -2 3 -0 02 13 5-2 3 -0 0 2 14 5-2 3 -0 0 2 15 5-2 3 -0 0 2 16 5-2 3 -0 0 2 17 5-2 3 -0 0 2 18 5-2 3 -0 0 2 19 5-2 3 -0 0 2 20 5-2 3 -0 02 21 5- 3 -0 20 22 5-2 23 -0 02 23 5- 3 -0 20 24 5- 23 -0 20 25 5- 23 -0 20 26 5- 23 -0 20 27 5- 23 -0 20 28 5- 23 -0 20 29 5- 23 -0 20 30 5- 23 -0 20 31 5- 23 -0 20 01 5-2 23 -0 0 2 02 6-2 3 -0 02 6- 3 20 23

3.000

Base ‘24 vs summer ‘24

01

2.500 2.000

NL spot base

NL Base Y+1

NL Sum2024 base

1.500 1.000 500

-1 7 ja n18 ap r18 ju l18 ok t18 ja n19 ap r19 ju l19 ok t19 ja n2 ap 0 r20 ju l20 ok t2 ja 0 n2 ap 1 r21 ju l21 ok t2 ja 1 n2 ap 2 r22 ju l22 ok t2 ja 2 n2 ap 3 r23

7

17

ok t

l-

-1

ju

ap r

ja n-

17

0

126

127

NL Win2024 base

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Energyy Market Update

Energyy Market Update

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Power spot market

€/MWh

The Future

€ 250

But how will the prices develop in the upcoming months?

to transport. In short, from an economic perspective we

As with all commodity markets, this depends on many

see price pressure, but attention is required as global

factors. Therefore, we give a view on some key power

exposure has increased significantly.

price fundamentals:

€ 200 € 150 € 100 € 50 €0 1-1-2023

Renewable production

Supply

1-2-2023

NL

With the pressure on CO2 reduction and high power

With the renewable energy supply still increasing and the

prices the amount of renewable energy is increasing

€/MWh

biggest risk of unstable gas inflow for Europe seemingly

and we know some high capacity offshore wind projects

€ 300

covered, the supply side is expected to be positive. Also

are currently in progress of being developed. With the

€ 250

considering many new agreements and physical capacity

amount of renewable energy already exceeding demand

on Liquefied Natural Gas (LNG) to replace Russian gas

at certain points during the day (especially for solar), this

supply that are not yet even operational and will start

becomes more important. However, this development

in coming months/s and years. In the long term, we see

is not only applicable on spot prices but also on future

many investments on the supply side, such as more

products and puts pressure on future prices.

renewables and even more LNG terminals coming online.

BE

GE

FR

1-5-2023

1-6-2023

UK

Power forward market

€ 150 € 100 € 50 € 0 01-01-2023

01-02-2023

01-03-2023 NL

2022 as unlikely at the moment, but with low liquidity in the

Based on the many drivers around energy pricing, we do

€ 100

market for future contracts only a spark is enough to set

believe the biggest correction after the 2022 price surge

€ 80

everything ‘on fire’. Furthermore, as a society we always

has taken place, which is also seen in the moving average

€ 60

have to keep in mind that major events such as that we’ve

price view below. And although we saw some negative

€ 40

seen in the last year, can have (short) impact on prices.

price movement mid-June, the key fundamentals look

€ 20

A long term strategy will reduce this risk significantly.

positive to keep prices relatively stable or even driving

€0

01-04-2023 BE

GE

FR

01-05-2023

01-06-2023

01-05-2023

01-06-2023

UK

Gas forward market

€/MWh

Conclusions

Economic

1-4-2023

€ 200

Therefore, we see strong prices increases as happened in

them further down. It goes without saying to “never

1-3-2023

€ 120

01-01-2023

01-02-2023

01-03-2023 NL

catch a falling knife”, but because of low liquidity we

From an economical point of view we see a mixed picture.

would advise - in case of a desire for budget security -

So far the economies of China, US and EU are struggling

to at least fix a part of your position to avoid exposure

as we see the first official recession figures hitting us from

in case of unexpected new events and spread your risk

€ 80

these regions. This is beneficial from a demand point of

in a firm and well structured buying strategy. A Power

€ 70

view as this will have an impact on all energy commodities

Purchase Agreement (PPA) could also help in gaining

€ 60

including oil, gas and power. The risk here is that with the

price security, something we will look into in the next

€ 50

switch to LNG in Europe, we are now even more playing

update. In the next update, we will also review pricing

on a global demand level. Sellers can send their LNG to

developments throughout FLAP-D and assess pricing

the highest bid location as LNG is much easier

and volatility risks throughout the last few years.

01-04-2023 BE

GE

FR

UK

Price development (year to date)

€ 40 € 30 € 20 € 10 € 0 1 jan

1 feb

1 mrt

1 apr

1 mei

NL spot

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FAR NORTH FIBER TAKES A MAJOR STEP FORWARD: CABLE ROUTE STUDY HAS STARTED

FTTH COUNCIL PRESENTS FORECASTS FOR EUROPE 2023-2028

The Far North Fiber project, which aims to build the first

The FTTH Council, the industry

pan-Arctic submarine cable system connecting Europe

association in Europe, has released

and Asia via North America, takes a major step forward

various reports about the latest

with the start of the cable route study.

figures on fiber deployment trends in Europe. One of them is the

million in EU27+UK and 196 million

The Far North Fiber (FNF) project is carried out by the

Fiber-to-the-Home/Business (FTTH/B)

in EU39 region, with take-up rates

international joint venture Far North Fiber Inc., formed by

Forecast for the upcoming five years.

experiencing steady growth in both

Cinia Oy (Finland), Far North Digital (USA) and ARTERIA

It confirms the positive trend of fiber

regions.

Networks Corporation (Japan). The cable route study of

rollouts across Europe, with full-fiber

the project will be carried out in cooperation with Alcatel

connectivity being a clear priority for

Full-fiber connectivity

Submarine Networks (ASN), as leading technology partner

EU authorities, national governments,

The physical limitation of existing

and contractor for this project.

and market players across Europe.

cable and copper networks in terms

On the technology side, the data

of bandwidth is pushing telecom

report a significant trend whereby

For example, the data foresee around

players to deploy full fiber solutions.

PON is gradually but clearly prevailing

The planned cable system will run from Japan, via the Northwest Passage, to Europe with a landing in Alaska.

The Cable Route Study (CRS), along with the marine

211 million homes passed for FTTH/B

In addition, increased traffic demand

over point-to-point fiber, as a

European landings are planned in Norway, adjacent to

survey, is a critical component of the project. The results

in 2028 in EU27+UK and 308 million

in the region is pushing operators

consequence of the progress of PON

Finland, and Ireland. There are also several branching

will be used to define the best route for the Far North Fiber

homes passed in the EU39 region. It

to update their networks to full fiber

technologies on one side, and the

units designed along the route to accommodate future

cable system in terms of safety, reliability, cultural and

is expected that the top 3 countries

in order to be ready for new traffic

strong focus on power consumption

branch connections in the Pacific, Canadian Arctic, and

environmental factors, and economics. ASN’s expertise

in terms of homes passed will be

peaks. Thanks to recently launched

and sustainability on the other.

Atlantic. It is estimated that the approx. 15,000 km long

in the Arctic region is a profound asset in the realization

Germany (33,5 million), France (33,2

national programmes coupled with

submarine cable system will be operational by the end

of this project. The cable route study will be completed

million), and the United Kingdom (30,7

DAE targets for 2025 & 2030, full-fiber

To read the full FTTH/B Forecast

of 2026. The project has received funding from the EU’s

in 2023. The results of the CRS will support the upcoming

million). Furthermore, the number of

connectivity will be reaching new

2023-2018 report, you can visit the

Connecting Europe Facility (CEF Digital).

marine survey, also scheduled to begin during 2023.

subscribers is expected to reach 137

high levels in European countries.

website of the FTTH Council.

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STONEPEAK RECAPITALIZES EUNETWORKS

WORLD’S FIRST STANDARD CLADDING DIAMETER 19-CORE OPTICAL FIBER WITH RECORD TRANSMISSION CAPACITY

Stonepeak, an investment firm specialized in infrastructure and real assets, recapitalizes

A group of researchers from the National Institute of Information and Communications

euNetworks, an bandwidth infrastructure company. The recapitalization is being

Technology (NICT, Japan) and Sumitomo Electric Industries, Ltd. (SEI, Japan) in

effectuated as a sale of euNetworks anchored by a Stonepeak managed fund

collaboration with the Eindhoven University of Technology, University of L’Aquila, and

alongside strategic investments from Dutch pension fund APG Asset Management

Macquarie University has developed a 19-core optical fiber with a standard cladding

(APG) and Investment Management Corporation of Ontario (IMCO).

diameter (0.125 mm), which has the largest number of cores among the standard cladding diameter multi-core fibers.

euNetworks owns and operates 17 dense fiber-based metropolitan city networks, connected with long haul networks covering 53 cities in 17 countries. They directly connect over 510 data centers in Europe, with further indirect connections.

The optical fiber has demonstrated large-capacity transmission at a data-rate of 1.7 petabits per second over a distance of 63.5 km. A randomly coupled multi-core fiber

Stonepeak first acquired a majority interest in euNetworks in January 2018, and since

design was used to achieve high core density, as well as a multiple input multiple

that time the company has increased the number of connected data centers by

output (MIMO) digital signal processing to eliminate inter-core signal interference.

over 60%, announced three acquisitions, and optimized the capital structure through incremental debt and equity funding.

In this experiment, the world record was achieved for the transmission capacity of an Cyrus Gentry, Managing Director and Head of Communications Europe at Stonepeak,

optical fiber with a standard cladding diameter, and the world’s longest transmission

says, “From our initial investment in euNetworks in 2018, the company has developed and

distance was achieved among transmission experiments with a capacity of 1 petabit

accelerated its strategy, and has become a market leader in bandwidth infrastructure

per second or more. This result shows the possibility of significantly reducing the power

in Europe. We are incredibly proud of the progress the company has made to date.

consumption of MIMO digital signal processing in transoceanic systems, compared to

APG and IMCO share our enthusiasm for euNetworks’ future and collectively we look

multi-mode fiber transmission. This fiber technology will contribute to the realization

forward to working closely with the company as it continues to grow over the coming

of future long-distance and large-capacity optical communication networks.

years and as Stonepeak continues to grow its presence in Europe.”

The transaction, which was not disclosed, is expected to close in the second half of 2023 and is pending on regulatory approvals and closing conditions.

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EUROPEAN COMMISSION GIVES GREEN LIGHT FOR JOINT VENTURE TELENET-FLUVIUS

Telenet, a Belgian telecom operator, and system operator

close the transaction on 1 July 2023. Telenet will have a

Fluvius received green light from the European Commission

66.8% stake in NetCo with Fluvius owning the remaining

for the Telenet-Fluvius cooperation to build the network

33.2%. NetCo will be fully funded with no dependency on

of the future in Flanders and parts of Brussels.

obtaining incremental external financing.

Last year, Telenet and Fluvius announced an agreement

Furthermore, the new company intends to deploy a hybrid

to jointly build the network of the future. To this end, both

network strategy to enable speeds of up to 10 Gbps for

parties intend to establish a new infrastructure company

all its customers, ensuring they continue to get the best

called NetCo whose objective is to build the network of

possible network experience. Up to 78% of all homes in

the future in Flanders and parts of Brussels.

Flanders and parts of Brussels are expected to be passed by fiber (FTTH), with the majority already in the first 8

As with most transactions of this size in the EU, NetCo was

years. In other areas, NetCo will further upgrade and

subject to prior approval by the European Commission and

expand the technology of the Hybrid Fiber Coax (HFC)

has now received formal clearance from the European

network. Together, this represents an investment of up

Commission approving the transaction. Following this

to two billion euros.

confirmation, Telenet and Fluvius are now expected to

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Lifestyle

Lorem Ipsum

BLITZ THE BYTES BYTE Magazine, an microcomputer publication, was a highly influential magazine during the late 1970s and throughout the 1980s due to its comprehensive editorial coverage.

While many magazines in the mid-1980s were focused on

The magazine was published monthly, with an initial yearly

the MS-DOS (PC) or Mac platforms, mostly from a business

subscription price of $10. BYTE attracted advertising and

or home user’s perspective, BYTE covered developments

articles from many well-known, soon-to-be-well-known,

in the entire field of “small computers and software,”

and ultimately-to-be-forgotten entities in the growing

including other computing fields such as supercomputers

microcomputer hobby.

and high-reliability computing. Its coverage was technical and in-depth, rather than user-oriented.

It was considered the “must-read” magazine among popular computer publications. One of the reasons were

BYTE Magazine was founded in 1975, shortly after

the highly esthetical covers of the American illustrator

the first personal computers appeared as kits

Robert Tinney who designed them from 1975 until 1986.

advertised in the back of electronics magazines.

Therefore, we pay homage to the art direction of this magazine.

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BYTE

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1979

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BYTE

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1981

1981

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1983

1984

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1986

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Expert Insights

JOÃO MARQUES TECH CAPITAL

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NO SET BACKS Over the past few years, data centers have become a

industries, from healthcare to finance to manufacturing.

vital component of the global economy. As businesses

These applications require significant computing power

increasingly rely on digital technologies to operate, the

and storage capacity, making data centers an essential

demand for data centers has soared. Europe has emerged

component of their infrastructure.

as a key player in this industry, with a growing number of data centers being built across the continent.

Despite the strong growth in the data center industry, there are several challenges that must be addressed.

As we close Q1 2023, the state of data center investment in

One of the main challenges is the increasing demand

Europe remains strong, with significant growth projected

for energy – especially as AI-intensive workloads gain

over the next few years. The European data center market

traction amongst millions of users. Data centers are

is expected to grow at a compound annual growth rate

energy-intensive facilities, requiring large amounts of

of 10% up to 2025, despite wider economic headwinds.

electricity to power their servers and cooling systems. This

This growth is being driven by several factors, including

has led to concerns about the environmental impact of

the increasing adoption of cloud computing, the growth

data centers, and efforts are underway to develop more

of the Internet of Things (IoT), and the increasing demand

sustainable data center solutions.

for artificial intelligence (AI) and machine learning (ML) applications.

Despite all, data center investment in Europe in 2023 is strong, with significant growth projected over the next

Cloud computing has revolutionized the way businesses

few years. By addressing challenges and continuing to

operate, allowing them to access computing power and

innovate, the data center industry will be well-positioned

storage capacity on demand. This has led to a significant

for continued growth and success in the years to come.

increase in the demand for data center services, as businesses seek to store and process their data in the

Biography

cloud.

João Marques Lima is a London-based journalist, editor and host. Winner of an IM100 Digital Infrastructure Award

The IoT is a network of connected devices that are able

and a Professional Publishers Association (PPA) 30 Under

to communicate with each other and with the internet.

30 Media Award, he owns a real passion for the media

These devices generate vast amounts of data, which must

and has experience across online, print, broadcast and

be processed and analyzed in real-time. Data centers

events. He is the founder and editor of The Tech Capital,

are critical to the functioning of the IoT, as they provide

part of Mondego Media Group, and the host for the

the computing power and storage capacity needed to

Great Business Minds Podcast, which combined form

manage this data.

the definitive digital media and event platforms for the business of digital infrastructure. João is part of a new

DE LIMA 148

In addition to cloud computing and the IoT, the increasing

generation of “mediatrepreneurs” and throughout his

demand – especially this year - for AI and ML applications

career he has reported from over 35 countries worldwide,

is also not only driving, by forcing the reassessment

filming interviews with CEOs of big tech companies and

of data center investment in the continent. AI and ML

government figures, amongst others..

are being used by businesses across a wide range of

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Euromap

Euromap

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Helsinki

Oslo Stockholm

Riga Edinburgh

Dublin

DATA CENTER MARKET Tier 3 markets of interests

Copenhagen

Hamburg

Manchester

Berlin

Amsterdam London

Poznań

Warsaw

Dusseldorf Brussels

Prague

Frankfurt Luxembourg

Parijs

Krakau

Nürnberg Vienna

Munich

Budapest

Zurich

Lyon

Milan Bucharest

Marseille Sofia Barcelona

Rome Istanbul

Madrid Lissabon

Athens

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Emerging Tier 2 markets

Tier 1 markets (FLAPD)

CONNECTIVITY | DATA CENTER | CLOUD

THE ANNUAL EUROPEAN STRATEGY & NETWORKING SUMMIT

FEBRUARY 26 & 27 AMSTERDAM RAI For more info visit: www.kickstartconf.eu