Datacentered - Issue 03

TEAM DATACENTERED

Publisher

Dutch Data Center Association (DDA)

Editor in Chief

Pim Kokke

Stijn Grove

Art Director

Sam Zondervan

Asha Garib

Marketing & PR

Zoë Derksen

Claire van der Bij

Carole Santens

Research Partner

Peter Vermeulen, Pb7 Research

Contributors

Ilse van Asperdt, Laura Beukers, Nienke van Eijk, Natascha Geraedts, Lieke Hamers, Rhodé Koelewijn, Dami Munter, Hugo Onink (Lifeshots Photography), Niek van der Pas, Ulysses Ricardo, Jan Willem van Roggen, Melissa Scholten, Alexandra Schless, Stroomkr8

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:

Location

Dutch Data Center Association Laarderhoogtweg 18

1101 EA Amsterdam Zuid-Oost

The Netherlands

Advertisements

For inquiries about advertisements, please contact info@datacentered.net

Legrand Data Center Solutions, STULZ, Stroomkr8, Eversheds Sutherland, Watts, DPR Construction, Deerns, AP, Maunt, Kelvion, Koninklijke van Twist, Volker Energy Solutions, EkkoSense, Panduit, Kenter, Eaton, Weiss Technik, Paroc Panel System, Rittal, Trescal, Arcadis, Beveco, Chatsworth Products, Exagate, Workrate, R&M Europe, ABB, Mitsubishi Electric, NL-ix, Dataport Eemshaven, Heijmans, Blygold, Huawei, TSL, Kohler, FNT, CBRE, Vertiv, Socomec, Royal HaskoningDHV, MarshMcLennan, Forehand, Coolgradient, Fluor, Alara-Lukagro, AKSA Power Generation, Rentaload, ACT Connectivity Solutions, CANS, Zwart Techniek, Dcongreen, Arup, Croonwolter&dros, Wesco Anixter Aggrekko, Georg Fischer AG, DGMR, Turner & Townsend, 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, DC People, Park Place Technologies, Johnson Controls, TÜVIT, Honeywell, Grundfos, Elinex, Equans, Pathema, APAC, Salute, All-Rack, ATC, CSB Energy Solutions, Delta Electronics, Kobespa, Waterfall Security, Lubron Waterbehandeling B.V.

MAKE A CHANGE

With the third issue of Datacentered, the time has come to look at our industry from a more societal perspective. Primarily because the IT and Engineering industry does not represent today’s European society.

While writing this editorial, I am reminded of my student days when had a side job in an elderly home. In the healthcare industry - just like the IT and Engineering industry - companies struggle with staff shortages. Efforts have been made for years to encourage more men to pursue a career in healthcare. Similarly, our industry actively recruits new (female) technicians and engineers. However, despite these efforts, the number of women working in tech remains low. For example, research by McKinsey & Company shows that women occupy only 22 percent of all tech roles at European companies.

Critics will argue that this ratio simply exists because working in a particular sector is often labeled as a ‘female’ or ‘male’ profession. This conservative reasoning will not encourage more girls to choose Science, Technology, Engineering, and Mathematics (STEM) courses in school. Studies have shown that even though plenty of girls are interested in STEM, they must overcome challenges to be successful in this work field. “Barriers from the educational system, family influences and expectations and the perception of STEM education are just three examples.”

Therefore, can you expect this level of self-confidence from a 16-year-old child, while they are still discovering their identity? Or can parents, teachers, and all of us who work in this field bear this responsibility by giving the next generation the belief in themselves?

While it can seem like a small step, it is precisely by fostering this self-confidence that we take a step in the right direction. We are moving in a good direction by organizing more and more sessions on diversity. However, it is unfortunate to notice how a few people attend these panel discussions, leaving this topic seldom noted. While recognize that the industry is committed to creating a diverse workplace, we must continue to take impactful steps to put our industry even better on the map.

That’s why we feature Women in Tech in this edition of Datacentered. The portrait interview, including a beautiful photo shoot with Ilse van Asperdt (Ministry of Defense) and Melissa Scholten (Digital Realty), symbolizes what Datacentered conveys: the will to make a change. Furthermore, we have contributions from our regular columnists, and guest author Anna Klaft of the German Datacenter Association shares her views on developments within the German market.

I hope you enjoy reading this memorable edition of Datacentered.

Pim

Kokke

Editor-In-Chief

ICONS OF INNOVATION

BY PIM KOKKE PHOTOGRAPHY: HUGO ONINK, LIFESHOTS PHOTOGRAPHY

TEXT

It’s a rare sunny day in early March at the top of data center AMS17 of Digital Realty Netherlands. The beautiful 360 degrees view of Amsterdam is only a minor detail. We are more focused on ILSE VAN ASPERDT and MELISSA SCHOLTEN who are preparing themselves for the first official photo shoot in this magazine and the story about female role models in the data center industry. Why? It should be normalized that the industry must reflect today’s society in which young women must be encouraged to follow their passion (even if it does not match a so-called ‘status quo’). After graduating from high school, Ilse studied at the Royal Military Academy and joined the Dutch Army where she served various years. “I had a desk function at the IT department but as a soldier, mostly enjoyed the operational field work. However, this became difficult to combine when I became a mother for the first time. Luckily, the Dutch Army is very cooperative but I decided that it was time for the next step”, tells Ilse. For a brief time, Ilse worked at an organization who are active in healthcare. It was eventually a fellow student from the Royal Military Academy who informed her about the data center industry and Interxion (now: Digital Realty) in Amsterdam.

Melissa “When started working in the data center industry, it was a new environment for me. Therefore, it was great to have you as a role model. How did your career progression go within Digital Realty?”

Ilse: “I started as a resource planner at SiteOps and became Support Manager. After our SiteOps manager left the company, my colleague and combined this role. With the growth of the organization with more data centers, we introduced the functions T1 to T4 with associated education tracks. And with this initiative we had a job level for starters. Together with HR, we looked at what skills we needed within the organization. In fact, it was difficult to find skilled personnel. That’s why we organized pizza nights to attract new talent so people could get to know our company and job opportunities in an informal way. We asked ourselves how we could train young people to be engineers and provide a career path for them.”

Melissa “Everyone notices that there is an urgency to create an entry level within the company and educational institutions. Therefore, it’s very important that we as an industry offer positions at this level. What learnings from the past did you use in your new role?”

Ilse “When I came back to the Armed Forces, I started at the IT Academy as a Training and Development Advisor in which was responsible for the Technical Skills component. Within the IT Academy, we also implemented peer-to-peer learning in which you learn various hard and soft skills from your most experienced colleagues.”

Melissa “And while still working at a data center operator, you and female colleagues also quickly emerged as role models to make sure we get more women into our industry. One of the first initiatives we worked on together was Girls’ Day to get young girls excited about the profession. How do you look back on this time and yourself as a role model?”

Ilse “Even though I thought wasn’t very good at technology, discovered that actually fit in well within this industry. For example, I am 41 years old and am graduating from my Human IT degree. However, would have liked to know earlier in my life what the possibilities are. Therefore, it has become a driving force to inform girls and boys about IT and Engineering. That is why Girls’ Day is also a great initiative to show what is possible, so that these girls can make a conscious choice for their future career.”

Melissa “At the Armed Forces, are you still committed to getting more girls excited about IT?”

Ilse “Yes, in the Armed Forces, we are working hard to change the perception that only masculine characters are suitable to become soldiers. We are convinced that this type of employee is not the only one we need. At the IT company within the Armed Forces where work, there are many female employees. Still, it remains important to create more awareness among various generations. An important part of this is to help and inform parents and educators. For example, a few years ago I was asked by Politie Nederland to give a gaming workshop to parents and their daughters. In this way, they get an idea about cyber security and the world of IT.”

Melissa “I have two daughters who are both in elementary school. Luckily, the school pays a lot of attention to both genders in the work space. For example, both a female and male firefighter came to the school to talk about their profession. Furthermore, after an informative visit to a construction site my daughter came home and proudly told us that she wants to become a bricklayer. They also had a media literacy week where they all got to work with technologies such as Virtual Realty (VR), robots and Augmented Reality (AR). But it is not only the responsibility of the schools and parents to show girls and boys equal opportunities in different work fields, but also as an industry we need to be engaged and give back to the community. The schools need the help from companies that are willing to open up and share knowledge.”

Melissa “You mentioned gaming and know you are involved with some Esports initiatives. How do you see the combination between Esports and recruiting technical staff?”

Ilse: “The combination was especially driven to expand the pool of potential engineers. We went to the Esports Arena who also had a partnership with secondary vocational education institutions. That was the moment became convinced that today’s gamers are the IT engineers of the future. They have good skills from their gaming experience and with further training, they can become IT Technicians or Engineers.”

Melissa “Moreover, when you are gaming online you even become more aware of cloud usage, hardware, latency of your Internet connection. This knowledge can help their future careers. Lastly, you are also concerned with sports in general. I remember you, with your fulltime job and being mother of two young boys, being a fanatic sporter.

Ilse “Yes, that’s right. played soccer and volleyball in my youth. During my studies came into contact with all kinds of sports including rugby, which is after twenty years still my greatest passion. Furthermore, participated in several triathlons. A year ago, I started playing rugby again. As a civilian employee of the military, I am now part of the first women’s team and youth coach at a local rugby club. It is great to see that, in recent years, women’s rugby has become more and more popular. At first, we only had a league in the North and South region. But now we see that there are 4 different classes. In addition, it is also amazing to see how women’s teams who are just short of players and can’t play a league find each other twice a month to play together. The latter is a great thing for business, where I think women should look for each other more and help each other to do the things we like. We need to stand up for each other even more among women and start recognizing each other’s qualities.”

About The Icons

Ilse van Asperdt (41)

Business Developer, Technolution

Melissa Scholten (38)

Sr Communications Manager, Digital Realty Netherlands

HIGHER GROUND

Equinix AM3 and AM4 data centers are located at Science Park in Amsterdam with vital peering opportunities suitable for mission-critical interconnection and colocation services.

Architectural firm Benthem Crouwel Architects designed AM3 and AM4 with the goal to make the “invisible visible”. These buildings are the perfect example on how the aesthetics of a building can naturally blend in the landscape of the city.

According to the firm, the high-rise building is made of triangular aluminum profiles, which are black on one side and silver on the other, and become more narrow

in the top - an optical illusion that makes the tower look slimmer and gives it a more human scale. Furthermore, the gross floor area in AM3 is 18.750 m2 and AM4 covers 24.000 m2 The cooling redundancy for AM3 is N+20% and for AM4 N+1.

With these top tier data centers, Equinix has set a new standard in the Netherlands for the future of digital real estate.

JAN WILLEM

VAN ROGGEN

THE

EUROPEAN DATA CENTER MARKET:

HOW AND WHERE TO FINANCE THESE ENORMOUS DEMAND

FORECASTS?

The rise of technologies like cloud services and more recently AI have caused a surge in the demand for data center capacity in Europe. Paradoxically, this sharp rise in demand creates challenges as well. Recent public research showed that the take-up has generally outpaced new supply in the FLAPD markets for two consecutive years. In order to allow the market to live up to the double-digit growth forecasts, developments of new data centers will have to be executed rapidly. From a banking perspective this creates challenges as well, for instance: who will provide the necessary financing for these often-large-scale projects, and where will the capital go?

Ample appetite for both equity and debt funding in the data center market

Despite recent year’s most challenging macroeconomic conditions since the 2007-08 financial crisis, the European data center market proved to showcase ample appetite both from equity and debt capital providers. Data centers’ strong fundamentals allow the market to operate relatively independently of the broader macroeconomic environment. Greenfields are predominantly delivered based on a pre-sold basis, hereby reducing the risk for capital providers. Accordingly, the M&A transaction volume in the European data center sector has been consistently moving around all-time high levels since 2021. With the past interest rate hikes in mind causing a significant increase of capital, the total value of last year’s M&A transactions decreased and fewer so-called ‘mega-transactions’ closed in 2023. Nevertheless, transaction multiples and prices in the infrastructure

sector are relatively high, hereby creating a financing hurdle as banks are reaching their so-called “one-obligor limits” i.e., the maximum amount a bank is allowed to lend to one single organisation. In addition, it is expected that several large-scale infrastructure funds will be closed in the first two quarters of 2024. Combined with the strong appetite from banks, there is enough liquidity readily available to finance the European data center market going forward.

Growth both in and outside the FLAPD markets

Formerly, capital in the European data center market was predominantly deployed in the FLAPD markets. These metro regions are close to the data sources, therefore creating significant latency benefits. Nevertheless, currently the market is well-aware of the fact that the FLAPD region will not be able to accommodate all the data center capacity needed to facilitate the continuously growing demand. The availability of power and land, and increased government interventions are challenging Europe’s primary markets more than ever.

Consequently, investments in the FLAPD region will most likely not be dependent on the presence of sufficient demand, rather on the ability of deployers to secure the necessary power and land. On the back of these power and land challenges, secondary markets where (sustainable) power and land are more or less readily available are expected to receive increased investment appetite. In Western Europe, cities such as Berlin, Barcelona, Milan and Madrid are amongst the markets currently harbouring rapid deployments of greenfield data centers.

Furthermore, based on the ample presence of sustainable power and great government support, the Nordics appear to be an attractive region for lower latency dependent data centers such as AI-Training facilities.

Concludingly, where other markets might have experienced difficulties caused by a less favourable macroeconomic environment, the data center market continued to grow faster than ever. The FLAPD region’s attractiveness is once again proven by the uptake outpacing supply again in 2023. This supports the expectations for significant capital inflows into the region in the coming years. However, partially driven by the limitations of the FLAPD region, we see secondary European markets attracting exponentially growing capital inflows as well. Both equity and debt providers have great appetite to finance the data center market and hereby fuel society’s strong bet on the sector.

Biography

Jan Willem van Roggen is a seasoned banker who has a successful career in the financial services industry. With over three decades of expserience in banking, Jan Willem is currently heading the Commercial Real Estate and Infrastructure teams at NIBC Bank, which operate extensively across Europe. His teams possess extensive knowledge of the latest market trends and financing opportunities, allowing them to offer valuable insights and solutions to clients.

“Investments in the FLAPD region will most likely not be dependent on the presence of sufficient demand, rather on the ability of deployers to secure the necessary power and land.”

TRENDS SHAPING THE DATA CENTER MARKET

The rising demand for data center services continues to have an impact on the construction industry and society alike. For the seventh year, Turner & Townsend, a global consultancy business, released its Data Centre Cost Index (DCCI) that discusses emerging trends in the market. Luke Bartolo, Managing Director Netherlands, discusses how the Data Center market in Europe will evolve in 2024.

WRITTEN BY PIM KOKKE

Every year, Turner & Townsend conducts a survey for their Data Centre Cost Index (DCCI). In their latest edition, 83 percent of respondents mentioned that data center construction has struggled to meet industry demand in 2023. It is one of the challenges in the market that Luke Bartolo, Managing Director Netherlands at Turner & Townsend, and his colleagues observe. “The surge in Artificial Intelligence (AI) and machine learning development and the increasing demand for data storage and therefore data centers, remains high. However, new and pending laws and regulations are putting pressure on regional markets, impacting the availability of space for (new) constructions and the willingness of authorities to even progress permit applications. Further, grid congestion in Europe is starting to take hold of the markets causing further delays as the prioritization of construction developments is hotly debated.”

Artificial Intelligence

The growth of AI and machine learning has been dominating news reels in recent months. The rising demand for AI services squarely puts the spotlight on data centers, and the need for more data storage. The Data Centre Thermal Management Market Analysis report of Omdia (2022) suggests that power demands for racks are soon expected to increase almost ten-fold. “People are starting to realize how data centers support our daily

lives and almost all of our daily activities. The perception of what has been once referred to as the ‘black box’ is changing. In addition, we find an increase in both suppliers and customers asking us how to build and operate data centers with greater sustainability in mind, specifically the reuse of residual heat from data centers to reduce the reliance on traditional energy fuels.”

Supply chain

The European market is no exception when talking about the growth of data centers and the pressures on its supply chain. Challenges such as the shortage of qualified professionals has both an impact on the speed of delivery and the ability to operate such large, technical facilities. Bartolo: “As an example, in Ireland, you see pace in the development of new locations. Professionals and contractors with a lot of pre-existing sector experience are engaged to accelerate the projects. In this way, the supply chain remains rather small and is always stretched to cover multiple projects. Only recently has the market been open to engaging with other professionals and contractors with experience gained in other sectors such as nuclear, industrial or energy.”

Subsequently, the shortage of people and capacity leads to higher costs to build and operate. Moreover, the rising interest rates in Europe are challenging the financial

markets which may influence further investments in the region and the business model of the industry. “You now see organizations shifting their attention to new locations outside of FLAPD* to improve their business model. For example, the Nordics and M3 (Madrid, Marseille, Milan) are growing but we also see a lot of developments in Warsaw, Istanbul and Berlin”, says Bartolo.

Project Management Consultancy

In order to manage the construction phase of new facilities, Bartolo sees one major trend that will influence the market for the next few years. “Organizations are stepping away from engaging a general contractor in a traditional sense and are preferring to buy out packages of work, and in doing so gain greater control over and ultimate trust in their supply chain. In certain circles this approach is known as Project Management Consultancy, an approach in which the client (or operator) strives for more flexibility and control over the project, to move forward at their own discretion and pace. We see this trend happening not only in the data center market but in other sectors where large construction projects are being executed.”

In summary, economic and market challenges have led data center operators to search for alternate development sites and employ alternative procurement strategies to maintain greater control over their developments, during planning and construction, to ultimately realize their projects against a backdrop of already challenging business cases. In the Data Centre Cost Index (2023) of Turner & Townsend, 79 percent of respondents believed that the data center sector is recession-proof, an increase on last year of eight percent. This suggests that despite the challenges, the data center market in Europe is and remains booming.

*Frankfurt, London, Amsterdam, Paris, Dublin

EXPLORE THE DATA CENTRE COST INDEX

ARE YOU INTERESTED IN THE FULL DATA CENTRE COST INDEX OR GETTING TO KNOW TURNER & TOWNSEND’S NETHERLANDS BUSINESS? SCAN THE QR CODE TO DISCOVER ALL THE EMERGING TRENDS IN THE MARKET.

SCAN THE QR CODE

ANNA

KLAFT

THE STATE OF THE GERMAN DATA CENTER MARKET

In recent years, the German data center market has undergone significant transformation due to increasing data processing requirements, the rise of AI applications, and the general digitization of everyday life. This change is crucial for the country’s digital transformation and has implications for the economy, environment, and society. The colocation market is expected to more than double from 1.3 GW to over 3.3 GW within five years, with an annual growth in available IT capacity of 15.6% between 2023 and 2029. Additional values and forecasts on the development of the German data center market will be published in the Data Center Impact Report Germany 2024 by the German Datacenter Association (GDA) in March 2024.

At the heart of this transformation is the principle of digital sovereignty, which emphasizes the ability to store and process data within Germany’s borders securely and reliably, adhering to national (e.g., the Federal Data Protection Act) and European (GDPR) data protection standards. Achieving digital sovereignty is crucial for safeguarding the integrity and independence of vital systems, a cornerstone of national security.

The launch of the European Energy Efficiency Directive (EED) in September 2023 has underscored the importance of sustainability in this sector. As part of the EU Green Deal, the directive mandates that by 2026, new data centers must achieve a Power Usage Effectiveness (PUE) value of 1.2, highlighting the need for enhanced energy efficiency.

Data centers serve a dual purpose in both the economy and climate policy by enabling digital economy growth and contributing to sustainability objectives. By optimizing processes through digital technologies, data centers can

significantly reduce CO₂ emissions. German data centers lead in utilizing renewable energy sources and operational efficiency, despite fiscal challenges. Their commitment to sustainability is further exemplified by their participation in the Climate Neutral Data Centre Pact, an industry-wide initiative aiming to improve energy efficiency.

However, the industry faces several challenges, including scarce land and electricity resources, increased operating costs, and complex permitting processes. The growing demand for AI and high-density computing requires continuous innovation in cooling technologies and energy supply. Initiatives to use waste heat and develop district heating concepts underscore the industry’s commitment to the energy transition and urban development. Therefore, the German data center market is at a crucial juncture where pioneering solutions for energy efficiency, sustainability, and digital sovereignty are vital for maintaining Germany’s position as a digital nation.

GERMAN DATACENTER ASSOCIATION

Given a lack of power and appropriate land available to data center providers looking to expand in Europe’s largest markets, CBRE expects the growth of the colocation data center industry to taper off considerably this year.

In the latest quarterly update of CBRE, they forecast that the new supply in Frankfurt, London, Amsterdam, Paris and Dublin (FLAPD) will be the second highest amount of capacity delivered in a year. However, the forecasted capacity represents a year-on-year decline when compared to supply added to FLAPD in 2023 (472MW).

Though CBRE doesn’t expect to see the new supply total to grow across FLAPD this year compared to 2023, the scale

at which the industry is delivering this year is remarkable anyway, considering the market constraints faced by operators. In fact, the supply base across the FLAPD markets almost doubled over the five-year period from 2019-2023. Much of that capacity has been built in London and Frankfurt.

As such, Frankfurt is expected to become the second FLAPD market other than London to surpass the 1GW mark in terms of total capacity. CBRE believes the lower expected growth of supply this year represents a relative lull in delivery of supply as opposed to a sign of long-term weakness in the colocation data center market or an inability of providers to deliver.

FORECASTED FLAPD MARKET SUPPLY

& TAKE-UP

Data Center design will evolve

Most of the hyperscale data centers planned for delivery this year are likely to be pre-let to a single tenant or will be delivered with a single tenant in mind. Organizations with AI-specific needs will only amplify the need for vastly greater amounts of capacity from providers given the scale of the expected requirements.

It is expected that data center design will evolve accordingly. Concurrently, CBRE expects to see the equipment required to power applications that are less dependent on instantaneous connections with customers located in a variety of European data center markets. To meet the coming demand, the FLAPD supply base - and take-up for that matter - are expected to grow considerably in 2025. In all likelihood, the de facto boundaries of FLAPD will need to expand further for demand to be met in future given how difficult it is for providers to accommodate new requirements within the primary markets. As such, more deployments are more likely to be housed outside the largest data center development hubs in future.

The demand for AI

The demand for Artificial Intelligence (AI) will create a new chapter in the core-to-edge computing book. As it appears now, about 80-90% of the AI workload is used for the training and the remaining 10-20% for AI tuning (adapting a general AI solution to the user’s situation and needs) and inference (applying the AI to new data at the device level to make decisions).

In time, as models mature and usage increases, this is expected to shift. Mature, commonly used AI applications with limited training needs may turn this percentage eventually around to 10%/90%. For now, the assumption – an educated guess - can be made that it will move towards about a 60%/40% distribution for training versus tuning and inference within the next five years.

FLAPD SUPPLY ADDITIONS NEW SUPPLY (MW) 2023 Q3

Source: CBRE

THE NETHERLANDS

DATA CENTERS

DESI INDEX

INTERNATIONAL TAX

COMPETITIVENESS INDEX

AMOUNT OF IX-MEMBERS

Most Connected

Nikhef Housing

• Nikhef Housing

Equinix Netherlands

• Equinix AM7

Equinix Netherlands

• Equinix AM5

Digital Realty Netherlands

• AMS 9 (Science Park)

Equinix Netherlands

• Equinix AM2

Largest Sites

NorthC Datacenters

• Datacenter Aalsmeer

Equinix Netherlands

• Equinix AM7

Digital Realty Netherlands

• AMS 15 (Hoofddorp)

NorthC Datacenters

• Datacenter Almere

Equinix Netherlands

• Equinix AM8

Most Locations

• Cellnex (25)

• Digital Realty (12)

• Equinix Netherlands (11)

• Eurofiber Cloud Infra (6)

• BIT (5)

Cloud On-Ramps

• Oracle Cloud (Equinix AM4)

• Oracle Cloud (Digital Realty AMS8)

• Google Cloud (Equinix AM3)

• Oracle Cloud (Equinix AM4)

• Oracle Cloud (Digital Realty AMS8)

• Google Cloud (Equinix AM3)

• Google Cloud (Equinix AM5)

• Microsoft Azure (Equinix AM5)

• Microsoft Azure (Digital Realty AMS8)

• Amazon AWS (Equinix AM3)

• Amazon AWS (Digital Realty AMS7)

• IBM Cloud (Equinix AM1)

• IBM Cloud (Equinix AM2)

• IBM Cloud (NorthC Almere)

GDP

BELGIUM

DATA CENTERS

DESI INDEX

INTERNATIONAL TAX

COMPETITIVENESS INDEX

AMOUNT OF IX-MEMBERS

Most Connected

Digital Realty Belgium

• Digital Realty Brussels BRU1

LCL Belgium

• Main LCL

Datacenter United

• DC Antwerpen Tower

Unix-Solutions

• Datacenter Zaventem

LCL Belgium

• Antwerp

Largest Sites

KevlinX

• Brussels

Digital Realty Belgium

• Digital Realty Brussels BRU1

Proximus

• Net Center 1

Proximus

• Net Center 2

LCL Belgium

• Main LCL

Most Locations

• LCL Belgium (10)

• Datacenter United (6)

• GTT Belgium (4)

• DC Star Belgium (3)

Cloud On-Ramps

• Google Cloud Region

DATA CENTERS

GERMANY

DESI INDEX

INTERNATIONAL TAX

COMPETITIVENESS INDEX

AMOUNT OF IX-MEMBERS

$3.9

Most Connected

Equinix Germany

• Equinix FR5

Digital Realty Germany

• Digital Realty DUS1

Equinix Germany

• Equinix FR7

IPB Internet Provider in Berlin GmbH

• CarrierColo Berlin Location B Equinix Germany

• Equinix FR4, 6&6

Largest Sites

Akquinet Germany

• Akquinet Nor01

Colt Technology Services GmbH Germany

• Colt Technology Services West Deutsche Telekom

• Itenos FR1

euNetworks Group Germany

• euNetworks Berlin

Global Connect Germany

• Global Connect HAM3

Most Locations

• EXA Infrastructure Germany (30)

• euNetworks Group Germany (22)

• Digital Realty Germany (21)

• Lumen Technologies Germany (15)

• Deutsche Boerse (14)

Cloud On-Ramps

• AWS

• Google Cloud

• Microsoft Azure

• Oracle Cloud

• Alibaba Cloud

• VMware

GDP

DATA CENTERS

DESI INDEX

INTERNATIONAL TAX

COMPETITIVENESS INDEX

AMOUNT OF IX-MEMBERS

$382.5 BILLION #5

Most Connected

BT Ireland

• BT Citywest Data Centre Ireland

Equinix Ireland

• Equinix Dublin 1

Digital Realty

• Digital Realty Dublin 1

Digital Realty

• Digital Realty Dublin 2

Equinix Ireland

• Equinix Dublin 2

Largest Sites

Equinix Ireland

• Equinix Dublin 3

EXA Infrastructure Ireland

• EXA Drogheda

Apple Ireland

• Apple Cork

Digital Realty

• Digital Realty Dublin 1

Most Locations

• Digital Realty Ireland (6)

• EXA Infrastructure Ireland (6)

• Amazon Ireland (4)

• Equinix Ireland (4)

Cloud On-Ramps

• AWS

• Google Cloud

• Alibaba Cloud

GDP

DATA CENTERS

DESI INDEX

INTERNATIONAL TAX

COMPETITIVENESS INDEX

AMOUNT OF IX-MEMBERS

$2.6

TRILLION

Most Connected KDDI France

• Telehouse - Paris 2 (Voltaire - Léon Frot)

Digital Realty France

• Digital Realty Marseille (MRS1, MRS2, MRS3)

Equinix France

• Equinix PA2 - Paris, Saint-Denis

Equinix France

• Equinix PA3 - Paris, Saint-Denis

SFR SA France

• SFR Netcenter Lyon-Venissieux

Largest Sites

EXA France

• EXA Paris (Aubervilliers)

CenterServ France

• CenterServ Toulouse

DataBank France

• DataBank Toulouse (TLS1)

Ielo-Liazo Services Sas France

#12

218 #36 634

• Ielo-Liazo Services Salamandre Serinya Telecom France

• Serinya Telecom Data Center

Most Locations

• Cogent Communications France (16)

• SFR SA (11)

• Equinix (10)

• CenterServ (8)

Cloud On-Ramps

• AWS

• Google Cloud

• Microsoft Azure

SWITZERLAND

CENTERS

INTERNATIONAL TAX COMPETITIVENESS INDEX

AMOUNT OF IX-MEMBERS

Most Connected

Digital Realty Switzerland

• Digital Realty Zurich

Equinix Switzerland

• Equinix GV2 - Geneva West

Equinix Switzerland

• Equinix ZH4 - Zurich

Colozueri.CH AG Switzerland

• colozueri.ch Zurich

Largest Sites

NorthC Data Centers

• Netrics Biel

NorthC Data Centers

• Netrics Münchenstein 1-2

Colt Technology Services Switzerland

• Colt DC Zurich

Swisscom Switzerland

• Swisscom Bern-Wankdorf

Anexia Switzerland

• Anexia Glattbrugg

Most Locations

• Swisscom Switzerland (7)

• Centralschweizerische Kraftwerke (CKW) AG Switzerland (7)

• Orange Switzerland (6)

Cloud On-Ramps

• Google Cloud

• Microsoft Azure

• Oracle Cloud

• OVHcloud

• Amazon Web Services

DATA CENTERS

DESI INDEX

INTERNATIONAL TAX

COMPETITIVENESS INDEX

AMOUNT OF IX-MEMBERS

Most Connected

Digital Realty Austria

• Digital Realty Vienna (VIE1, VIE2)

NTT Global Data Centres Austria

• NTT Vienna Data Center (VIE1)

DATASIX

• DATASIX Vienna (VIE1)

University of VIenna Austria

• Vienna University Computer Center (Wien)

Techno-Z Verbund GmbH Austria

• Techno-Z Salzburg

Largest Sites

Huemer Group Austria

• Huemer DC

Energie AG Oberösterreich Telekom GmbH Austria

• Energie AG Data PowerCube

Techno-Z Verbund GmbH Austria

• Techno-Z Salzburg

T-Systems International GmbH Austria

• Graz UPC Data Center

upstreamNet Austria

• upstreamNet DC

Most Locations

• EXA Infrastructure Austria (6)

• Raiffeisen Informatik GmbH & Co KG (4)

• Elektrizitätswerk Wels Aktiengesellschaft / IT & Tel (4)

Cloud On-Ramps

• Google Cloud

• Microsoft Azure

• Oracle Cloud

• OVHcloud

• Amazon Web Services

• Alibaba

• Rackspace Cloud

• VMware

• IBM Cloud

DIVERSITY & INCLUSION: ACTION OVER WORDS

In the business world, it’s crucial to have a variety of people and ideas. It’s important for everyone at work to feel safe, important, and involved. Diversity and inclusion isn’t just something to aim for; it’s the key to doing well.

Data centers, the home of the digital economy and digital society, focus on improving this. The sector wants to bring in more different kinds of people and make sure everyone’s voice can be heard. They understand that to do this well, they need to pay attention to the unique needs of different places around the world.

A big goal in this is to get more women working in this field. Our ambition extends to improving this representation to a point where it reflects the diversity of our societies. This effort begins early, by getting young girls interested in tech careers while they’re still in school.

It’s not easy to make tech spaces like data centers more inviting for women. But trying to solve this problem can lead to growth and new ideas. When different kinds of people come to work, they bring their own experiences and ways of thinking. This variety can lead to more creative and innovative ideas.

This sector believes in taking action, not just talking. They know they must take charge and share their progress to really make a difference. The journey isn’t easy, but for a field that’s always changing and expanding, there’s every chance to succeed.

We believe that through collaboration and commitment, we can shape a future where diversity and inclusion are not only valued, but considered essential to our collective growth and success. Let’s lead the way and do it.

IT’S A MAN’S WORLD

But it wouldn’t be nothing, nothing without a woman or a girl

For this issue of Datacentered, we asked four professionals to share their thoughts about the representation of women in our industry. The authors write about how to influence young women for chosing a career in Tech and IT, their experience when they started working in the industry and stresses the importance of abandoning traditional gender roles and recognizing that technical professions are accessible to everyone.

PARENTS AND SCHOOLS MUST ENCOURAGE CHILDREN’S POTENTIAL

With nearly three decades of experience in the data center industry, Alexandra Schless knew already from a younger age that she wanted a professional career in a business to business environment. During her economics study, she gained interest in technological developments and its endless possibilities. As a young girl, she was encouraged by her parents that she could achieve anything she set her mind to. It comes as no surprise that she found her path in the data center sector, where she has held various leadership positions.

Schless emphasizes: "It starts early, with what one learns at home and in education. The sooner we get young people excited about the tech industry, the greater the chance they will see the opportunities for a career path. The idea that technology is only for men is outdated and we need to communicate more often about the different roles women do have in the tech industry. Our world runs on technology; from mobile phones to digital collaboration and online business models. And data centers are an important part of the backbone of our digital economy.”

She further stresses the importance of abandoning traditional gender roles and recognizing that technical professions are accessible to everyone. Furthermore if you have a passion for technology, there are various roles within IT companies that provide great career opportunities. Parents and schools must encourage children's potential, or else they will opt for more obvious career paths. Therefore, we must excite children about IT and look beyond traditional professions.

Regarding gender balance within her company, NorthC, she strives for parity. Although there are no female technical engineers yet, recruitment always includes a call for female candidates. It's not about positive discrimination but finding the best person for the job and reflecting society accurately.

Schless also highlights concrete initiatives to inspire young women for IT careers, such as establishing a data center training program in collaboration with the Alfa College in Groningen and the Dutch Data Center Association. Additionally, NorthC participates in Girls’ Day, where young girls are introduced to the world of technology and data centers by their female colleagues. These initiatives aim to show young women that technical professions are accessible and to inspire them for careers in IT.

Alexandra Schless Chief Executive Officer, NorthC Datacenters

HIGHLIGHT SUCCESSFUL FEMALE TECH LEADERS IN YOUR COMPANY

Did you know that Albert Einstein’s first wife, physicist Mileva Marić contributed significantly to his groundbreaking science? Or that in 1979, Judith Faulkner founded one of the largest tech companies in healthcare, Epic Systems? And that three African-American mathematicians (Katherine Goble Johnson, Dorothy Vaughan and Mary Jackson) were essential to the success of early space flights by Nasa.

History is full of invisible women. Women who have made major contributions in STEM, and whose work has gone unnoticed. strongly believe in role models and representation. Marian Wright Edelman said “You cannot be what you cannot see”. We all need role models who can inspire us throughout our lives, be that as young women, aspiring leaders or changemakers. Seeing women in positions of authority, pursuing their passions, and making meaningful contributions ignites a sense of self-belief and motivation in women. When women are prominently present across various fields and platforms, it challenges gender stereotypes and biases that often hinder our advancement and recognition.

And we have some work to do. We are at an embarrassing 28th place on the World Economic Forum Global Gender Gap Index 2023 as the Netherlands. The drop to the top is even worse in STEM than non-STEM. The representation from women across seniority levels in STEM is dropping from 29,4% at entry point to 12,4% at C-suite level*. By showcasing our diverse talents, contributions, and perspectives, we will normalize women’s leadership.

Equally important as role models and representation is exposure. Highlight successful female tech leaders in various fields in your companies. Share their stories, achievements, and challenges. Stand by their side as their male ally. Recognizing and amplifying their achievements is crucial for inspiring future generations and fostering a

more equitable future. Make them visible on stage and at schools in front of female students. Arrange talks or workshops where accomplished women in tech share their experiences. Hearing first hand stories can ignite passion and motivation. Showcase diverse tech careers. Highlight not only traditional roles but also emerging areas like AI, cybersecurity, and data science. Let female students explore different paths. And when we are talking about education itself: integrate tech education. Ensure that technology-related subjects are part of the curriculum from an early age. Expose children at primary schools to coding, robotics, and other STEM disciplines.

I am very much committed to being a STEM ambassador all year round myself by participating in activities to increase the participation of girls and young women in science, technology and ICT in NL, like contributing to VHTO’s Girls Day every year with partners Digital Realty and Dutch Datacenter Association, being a mentor for other women in tech and acting as a guest lecturer in primary education together with IMC Basis and Weekend School.

Remember, inspiring young women to become tech leaders involves creating an environment where they feel empowered, supported, and valued. There is a role for everyone in our industry to be a role model, mentor or ally. Together we can contribute to a more and much needed diverse and dynamic tech industry.

*Global Gender Gap Report 2023. (n.d.). World Economic Forum. https://www. weforum.org/publications/global-gender-gap-report-2023/infographics66115127a8/

Lieke Hamers Chief Technology Officer, DELL Technologies

EXPLAIN TO EVERYONE WHAT WORKING IN TECH ENTAILS

What could be a good way to stimulate and enthuse young women to go for a technical job..!? Finding the ‘right’ job is an important step in one’s life, especially for young people. I would like to elaborate on what we can do as a society to enthuse young women to broaden their horizon when it comes to a position in tech. I believe it is a good thing to go for a job that’s a good fit and one that resonates with you.

What would be a position in which a young woman sees herself working for eight hours a day? How is she going to create a sense of being useful and to what extent she will utilize her talents and interest? Over the past decades the world has changed significantly in terms of technology and its functionalities. This has ensured the world has become ‘smaller’ and more connected, hence why we all have access to technology and applications anytime and anywhere.

How did we make this possible? As a bridge between the above and how I see what we can do to stimulate and enthuse, believe it would be good that women who are currently working in tech tell their story to young women for whom the field of job opportunities is still open. A visit to an elementary school for instance is a great first step. They could then share what it is like to work in tech, why it is fun and what has been accomplished in our society due to tech over the past couple of years.

From there they could come up with examples of what’s needed from a technical perspective to create and maintain applications with all its possibilities and functionalities. Explain that because of this we enjoy the

benefits which ultimately create convenience to our lives. Secondly, women working in tech could approach schools, both elementary and secondary educational institutes to arrange a field trip towards a tech company and/or data center in which women are working in technical positions.

Then let them explain what working in tech entails, what the benefits are and how you make things possible for our society. Translate the work they do to what it brings to our society and additionally what would happen when a certain system is not properly managed or maintained. In other words, share the convenience, ease, functionality and possibilities of tech and what women in tech make possible.

Ulysses Ricardo Business Development Manager

Iron Mountain

ACTIVELY CREATING OPPORTUNITIES FOR WOMEN IN TECH SHOULD BE OUR PRIORITY

fully support the idea of joint efforts to empower women in the technology sector. It is crucial that we recognize and leverage the talent and perspectives of women, not only from an equality standpoint but also to foster innovation and progress. Actively creating opportunities for women to start and thrive in tech careers should be our priority. This includes providing access to education and training, removing barriers, and offering mentorship and support.

As an employee of Schleifenbauer, a Dutch company specializing in the production of custom Power Distribution Units (PDUs) for Data Centers, feel privileged to work in an environment that values diversity and inclusion. However, am well aware that this is not the case for many women in the tech world. The gender gap remains a challenge and hinders the industry from fully realizing its potential.

When I started at Schleifenbauer in 2017, I was the only woman in a predominantly male environment. But with the company’s growth, this balance has significantly improved. Currently, 40% of our workforce is female. These women were not only selected for their ambition to learn the trade but also for their unique contributions to our team. The result is remarkable; our female colleagues work with precision and efficiency, leading to significant growth in our PDU production capacity and an increase in quality.

Let’s work together to overcome obstacles, challenge stereotypes, and build an inclusive and innovative tech sector where women can thrive fully. This sector is not only wonderful to work in but also has the potential to inspire countless women. Calling all women in tech! Share what makes our technical roles special and inspire other women by being a shining example.

Dami Munter Team Leader Sales & Marketing, Schleifenbauer

KICKSTART EUROPE HIGHLIGHTS IMPORTANCE OF DIGITAL INFRASTRUCTURE

Traditionally, a year of events starts with the Kickstart Europe Conference in Amsterdam in which the latest trends in our industry are addressed.

In our digital infrastructure industry, there are a few events that grab everyone’s attention. Your LinkedIn feed is covered with posts from your peers. The message? They are going to Amsterdam for the Kickstart Europe Conference one of the largest strategy and networking events for the data center, cloud and connectivity industry. From all over Europe, c-level executives come together to gain insights about the latest developments in the industry.

European Outlook

For the first time, the event was sold out. Therefore, the welcome evening (900+ persons) is a great start for catching up with your peers, which makes networking and expanding your network on the conference day easier. Besides networking, Kickstart Europe is a great opportunity for gaining more insights about the industry. In the morning program, Kevin Restivo (CBRE) presented the European Market Outlook, in which he addresses the major developments in the largest markets. For example, the top-4 markets (Frankfurt, London, Amsterdam, Paris) are still growing but there are concerns about supply and demand. Other challenges are difficulties with offering enough capacity and the rising rental rates for facilities. One of the strongest demands was measured in Frankfurt and London. Interestingly to note is that Milan has become the largest secondary market in Europe.

ARTICLE WRITTEN BY PIM KOKKE

Energy & Public Perception

Another often mentioned topic during Kickstart Europe was sustainability and the energy consumption of the data center industry. For example, Dick Theunissen (managing director EMEA, EdgeConneX), Eugene Bergen Henegouwen (President, Equinix EMEA) and Olivier Micheli (CEO, DATA4 Group) discussed the largest challenges on this matter. During the conversation, it was mentioned that the industry already takes a lot of steps (e.g. efficient cooling) to lower their carbon footprint.

Moreover, the public perception on the industry was briefly discussed. One of the questions remains how to change this perception. An answer that was given by most of the visitors is that the industry must repeatedly clarify the positive impact of data centers for the economy. Furthermore, by continuously becoming more energy efficient, the industry can take a leading role in the energy transition.

Save the Date

In 2025, Kickstart Europe will be back in Amsterdam on February 4 and 5. Want to receive more information about Kickstart Europe, please visit the website: https:// www.kickstartconf.eu/

VAN DER PAS

THE NEW EU ENERGY EFFICIENCY DIRECTIVE IS OUT!

On March 14, 2024, the EU Commission adopted the first delegated acts on data centers in accordance with Articles 12 and 33 of Directive (EU) 2023/1791. These documents have been formally submitted to the European Parliament and the Council for the scrutiny period. The delegated act outlines the information and key performance indicators to be reported. Additionally, it establishes the initial set of sustainability indicators that will be used for rating data centers.

The new regulation intends to increase transparency and potentially promote new designs and efficiency developments in data centers, which can reduce energy and water consumption and promote the use of renewable energy, increased grid efficiency, or the reuse of waste heat in nearby facilities and heat networks.

Preparing for the Reporting Deadline

The first reporting deadline is September 15, 2024, which is just a few months away, so time is of the essence. Understanding the content of the directive, its regulations, and annexes can seem daunting. It’s a lot to ask for and will take time and effort. On a reassuring note, the initial requirement is for reporting purposes only, with no performance requirements (yet). Nonetheless, the Energy Efficiency Directive (EED) presents an excellent opportunity to assess energy efficiency in data centers and prepare for improvements. As an advocate for using standards to professionalize our industry, it’s music to my ears that the EU is utilizing the EN 50600 series of standards. As we approach the September 15 reporting deadline, adopting a strategic approach to data collection is crucial.

Recommended Practices and Team Collaboration suggest starting with the first recommended practice of the EU Code of Conduct, the EU Taxonomy Framework, and the Maturity Model EN 50600-5-1. Establishing a

multidisciplinary team within your data center that meets regularly is also advisable. Dividing the reporting work among team members facilitates broader support and helps ensure all necessary data is collected.

This approach allows for easier identification of missing data and facilitates the necessary actions to source it. For instance, the Water Usage Effectiveness (WUE) requires accurate water consumption measurement, which may necessitate installing water meters if they are absent to enable you to report on this. Additionally, it’s important to consider that individual EU countries may impose additional measures when implementing the directive. For instance, Germany already has legislation in place for maximum PUEs, while the province of Noord Holland, which includes all data centers in Amsterdam, requires an assessment of new data centers with a PUE of 1.16 unless the heat is reused.

Exploring Renewable Energy Factors

Furthermore, the EED provides an opportunity to delve deeper into standards such as the Renewable Energy Factor (REF), which describes the percentage of a renewable energy over total data center energy. This standard, developed by a data center working group, could work equally well for various industries beyond data centers.

As I write this column while enroute to Prague, am wondering what the REF of my transportation mode is. suspect my car has a REF of 1, while believe the plane’s REF is closer to 0. As we progress towards greener energy consumption, want to enhance the REF by introducing a new category. Guarantees of origin are currently used to indicate how much energy is green. However, it’s important to note that this energy isn’t always generated simultaneously with consumption. It would be preferable

if each megawatt-hour (MWh) used was also generated from green sources at that exact moment. A potential solution involves linking blockchain-based tokens to each MWh of green energy produced. Although this technology is in its infancy, it could incentivize the creation of a greener electricity grid.

The concept of real-time green energy production and consumption, coupled with an accountable system, warrants further exploration. With adequate support, we could revise ISO/IEC and EN REF standards to reflect this improvement. and contributions are welcomed as we shape the future of data center standards.

Driving Positive Change

In summary, implementing the EU Energy Efficiency Directive requires proactive measures and collaboration within the data center industry. By adhering to standards and embracing innovations, we can drive positive change toward a more sustainable future.

“The EED provides an opportunity to delve deeper into standards such as the Renewable Energy Factor (REF), which describes the percentage of a renewable energy over total data center energy.”

MORE THAN JUST COOLING

Cooling in data centers is always one of the most key topics in the industry. Especially when combined with the steps data centers have to take in order to become energy efficient. One of the latest cooling methods that have caught the eye is Liquid Cooling.

Therefore, we asked the STULZ Group to share insights about this method and what data center operators need to consider if they want to use liquid cooling.

HOW DOES LIQUID COOLING WORK IN DATA CENTERS?

Liquid Cooling is an application that primarily targets high heat loads or higher IT densities per rack while air cooling has a lower heat load. The substitution starts with a higher heat load (50 kW), otherwise the cooling solution coexists. However, there will always be a need for air cooling with liquid cooling (direct-to-chip: 20-30% and immersion 5-10%).

There is also a difference between liquid cooling solutions: Direct and Immersion Cooling. Direct Cooling will directly cool the (hot spots) CPUs, GPUs and memory banks. This will depend on the application and partially air-cooling rest of components. On the other hand, Immersion (or Immersive Cooling) refers to the direct cooling of whole servers and air cooling of the room through the heat generated by the tank.

One question that needs to be addressed is how liquid cooling contributes to more sustainable data centers. STULZ: “Liquids have better heat transfer than air and are therefore more efficient, thus, you can dissipate higher heat loads on the same footprint. For example, to keep a chip at a working temperature of 75°C you may need a supply air temperature of 25°C, while with direct chip cooling around 40°C supply air temperature and 50°C liquid temperature could be sufficient. In this case you could use free cooling even in warmer regions, which is even more efficient.”

Furthermore, data centers who use Liquid Cooling are able to reach a lower PUE. This is because the heat recovery can be more efficiently applied using Liquid Cooling due to the higher temperature and better heat transferability of liquids.

More information about Liquid Cooling can be found at the website of STULZ.

WHAT DO DATA CENTER OPERATORS NEED TO CONSIDER IF THEY WANT TO USE LIQUID COOLING?

According to STULZ, the assumption is that data centers need a higher complexity of the infrastructure for the building and the installation. In the case that Immersion Cooling is used, installers must ensure that the servers are compatible with the Liquid Cooling solutions as some plastics/rubbers will dissolve in the coolant. Especially regarding handling of the liquid, data center operators must consider other safety standards.

Coexisting cooling systems

As previously mentioned, there will always be a demand for air cooling. Therefore, data center operators are looking at how both cooling processes (air and liquid) can be combined. For the future of Liquid Cooling in data centers, STULZ expects two different approaches:

1. Data Center on Greenfield site with a focus on liquid cooling

Depending on the DCLC or Immersion Cooling technology used, there will still be a need for air cooling here.

2. An existing Data Center that is supplemented with liquid cooling

In this case, STULZ expects that two separate areas will be part of a future data center: one Liquid Cooling part and one air-cooled part, depending on the application and the used IT equipment. Because of this, two independent cooling infrastructure water loops have to be established. In the case that a liquid direct to chip (DLC) application is used, a secondary water loop feeding the cold plates within the servers, has to be established. This is typically done using a coolant distribution unit (CDU) as the interface between the primary (building chilled water loop) and the secondary (server cooling loop).

ENERGY MARKET

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

Energy plays an important role for your business, and for the business of your customers. We’re therefore happy to provide a view on the market developments during Q1 of this year, and to shed some light on the opportunities in the markets.

Winter period?

Now that we’ve come to the end of March we can start looking back at the winter 2023-2024. Although ‘winter’ might be a bit of an exaggeration. Temperatures stayed well above normal (i.e. long-term average over the period 1991-2020) with a record for February in the Netherlands: with an average temperature of 8.2°C against the normal 3.9°C, it was the mildest February since measurements began in 1901 (source: KNMI).

Supply of gas

At the same time we’ve seen solid gas supplies to Europe. Not only from our traditional supplier Norway, showing some occasional hiccups by the way, but also of LNG, mainly coming from the USA. This resulted in a slightly downward trend for the gas spot price and a downward trend on the Year+1 prices for gas as well.

MARKETS HAVE CONFIDENCE IN BEING ABLE TO FILL STORAGES DURING SUMMER TIME

Resulting effect

The combination of the mild winter and the solid supply of gas resulted in maybe even more important aspects. Firstly, some nervousness faded away, and secondly and more concretely the EU storage levels for gas remained, and still are, very healthy. This means that markets have confidence in being able to fill the storages during summer time in preparation for the next winter, which results in lower risk premiums, hence lower future prices. Since the correlation between natural gas prices and the power prices is still strong, the same goes for electricity; during Q1 many European forward prices for several years decreased, and they have fallen to levels that many would not have thought possible 12 months ago. We can even say that prices have come down to historic prices, realizing that both spot and Y+1 prices have been higher in the first decade of this millennium.

Increasing impact solar production

Another striking development is seen in for example the Netherlands. More and more solar panels are being installed, both among solar farm developers and on rooftops on the houses and other real estate. The production of these solar panels is being added to the traditional power production, and on days when a fair amount of both wind energy and solar energy are generated, we see more and more hours with negative prices. Mid-March we already had witnessed 24 hours with negative prices this year., which traditionally is being considered as winter season with higher prices. Realizing that 2023 showed slightly over 300 hours with negative prices, against 85 in 2022, and that spring and summer still have to come, this certainly is a development, and an opportunity, to watch closely.

EUA

The EUA market started the year with a strong decrease, beginning just below 80 EUR/ton and reaching 50.5 EUR/ ton end of February. During March the prices increased, reaching its highest level in more than five weeks, due to rising energy prices resulting from gas production disruptions, forecasts of lower temperatures (except in Northern Europe) and an unplanned outage at a French nuclear unit.

It may be too early to tell, but some market players are already suggesting that EUA prices will rebound towards 70 EUR/ton, due to approaching the second half of the year, where compliance season, healthier industrial activities and winter temperatures come into play.

A firm rejection of the psychological limit of 50 EUR/ton is a strong signal to sellers, perhaps indicating that we have reached a bottom for the time being.

Conclusion

Against all odds we’ve seen the markets coming back to historic levels. Looking at the speed at which this happened, we should not be surprised if a strong correction will be seen as soon as unforeseen events take place. Traders see their previous expectations not come true. At the same time markets are getting less predictable as renewables become larger in volume. No room for ad hoc decisions or trusting the markets will guide you. More than ever a balanced strategy should be determined, based on the needs and dynamics of your company and your clients. Make that plan and stick to your strategy.

Finally, if you already have defined a strategy, and within that strategy you still need to take some steps, this could be an interesting moment and window of opportunity to start hedging these parts.

POWER SPOT MARKET (GE+BE+BL+FR+UK)

POWER FORWARD MARKET Y+1 (EU)

MARKETS ARE GETTING LESS PREDICTABLE AS RENEWABLES BECOME LARGER IN

NATASCHA

EVERSHEDS SUTHERLAND

GERAEDTS

KEY ISSUES AT PLAY WITHIN THE DATA CENTER MARKET IN

WESTERN EUROPE AND HOW TO ANTICIPATE THESE ISSUES?

As outlined in my previous columns, the Netherlands and other European countries have recently faced implementation of various European legislation directed at data centers. Implementation of this legislation has affected the data center market in Western Europe, with regulatory constraints related to environmental impact being one of the key issues at play.

Increasingly, data center operators and developers need to be flexible on a domestic level in order to comply with a variety of environmental regulations. As an example, the Netherlands have strict environmental regulations at both municipal and provincial (regional) level that even go beyond applicable national European legislation. These domestic regulations which focus on sustainability (PUE, waste heat recovery, water usage, power management) are rapidly evolving and can impose significant limitations. These sector wide restrictions result in substantial costs, as they force the market to constantly apply the latest technology with the best environmental results. In addition, environmental regulations force managers to early anticipation and adaptation and even reconsider operational strategies. Early alignment with legal and technical advisors has become crucial in this highly competitive market.

Scarcity of land and limited availability for suitable locations are another key issue. Owing to its advantageous geographic location and favourable climate, Belgium and the Netherlands are a popular region to develop data centers and to further expansion of existing data centers. Suitable land is however less and less available. Finding the right location in dense and populated countries can

be tough – how do you tackle a variety of challenges such as zoning regulations, grid constraints and demanding stakeholders all at the same time? Local knowledge and early contacts are key.

Last but not least: power. To overcome current and future grid limitations and at the same time replace fossil fuels with renewable sources, developers of data centers should find alternative power solutions that are both reliable and sustainable. There is still a lot to assess but different fuel sources such as natural gas, hydrogen, Small Modular Reactors and even wind and solar are being investigated. Although this may seem something for the far future, for the sector a transition towards on-site power generation ultimately seems inevitable.

Biography

Natascha Geraedts is a Partner at Eversheds Sutherland and part of Eversheds’ renowned Global Datacenter and Digital Infrastructure team. Natascha started her career at the Council of State and has over 20 years’ experience.

Natascha is seen as the “go to expert” in the Dutch market for her knowledge in the data center sector and data center developments. Natascha frequently speaks and publishes on environmental and regulatory aspects of data centers and she has been a yearly speaker at the Kickstart Europe Conference since 2021.

WHAT TO EXPECT FROM THE NIS2 DIRECTIVE?

Data centers will therefore need to take measures to protect themselves against cyber attacks. In this white paper, the Dutch Data Center Association (DDA), Secior, Honeywell and ATS Global explain what the NIS2 Directive will mean for your organization and what implications it will have. In addition, you will read which steps you can take to increase the cyber resilience of your data centers.

ARTICLE WRITTEN BY PIM KOKKE

Data centers play a crucial role in our modern society. They are responsible for storing, managing, and processing large amounts of data used by governments, businesses, and citizens. Without data centers, our digital world and economy would not function. Because of the above facts, data centers are now among the most critical infrastructure, just like hospitals and utilities. Because of this, it is important to emphasize that data center cyber security is critical to security and trust in our digital society.

The crucial position of data centers and suppliers within the digital ecosystem ensures these organizations will have to comply with the NIS2 Directive as of January 1, 2025. The European Union directive is the successor to the original NIS (Network & Information Security) and was put into effect to ensure the cyber security of organizations, which belong to the critical infrastructure.

What is the NIS2 Directive?

The first Network and Information Security Directive (NIS) was EU’s-wide cyber security legislation, and its specific goal was to achieve a high common level of cyber security in all Member States. Although it increased the cyber security capabilities of member states, its implementation proved difficult, resulting in fragmentation at different levels in the internal market.

To cope with the growing threats of digitization and the wave of cyber-attacks, the European Commission has put forward a proposal to replace the NIS Directive to strengthen security requirements, address supply chain security, streamline reporting requirements, strengthen oversight measures and more strict enforcement requirements, including harmonized sanctions across the EU.

The proposed expansion of the scope of NIS2, by effectively requiring more entities and sectors to act, would help raise the level of cyber security in Europe in the long-term. Within the European Parliament, the dossier was assigned to the committee on Industry, Research and Energy.

The full name is “Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures to ensure a high common level of cyber security in the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972 and repealing Directive (EU) 2016/1148 (NIS 2 Directive).”

The upgrade from NIS to NIS2 as new European cyber security legislation is applicable from 2023. SMEs, who do not provide B2B ICT services, appear to be exempted for now.

The full name is “Directive (EU) 2022/2555 of the European Parliament and of the Council of 14 December 2022 on measures to ensure a high common level of cyber security in the Union, amending Regulation (EU) No 910/2014 and Directive (EU) 2018/1972 and repealing Directive (EU) 2016/1148 (NIS 2 Directive).”

The upgrade from NIS to NIS2 as new European cyber security legislation is applicable from 2023. SMEs, who do not provide B2B ICT services, appear to be exempted for now.

NIS2 was developed to better secure the essential chain of companies and institutions. Everyone in a chain must start complying with NIS2. This new legislation is the perfect basis for any organization. So even if an organization is not required to comply with it (because it does not fall under the “critical infrastructure” category), NIS2 as a guide is recommended for every organization.

The industries already covered by the original NIS legislation are:

markets

In addition to these original NIS industries, nine more sectors were added to the NIS2 legislation:

What are the implications of NIS2?

One of the consequences of NIS2 is that there will be tighter scrutiny of governance. Failure to properly implement this regulation is going to have large consequences. Also, more inspections and audits will be performed by regulators. If this shows that organizations are not compliant, various fines can be imposed. In addition, more will be expected of the organizations themselves. For example, many organizations have a duty to report when an incident is detected, similar to the GDPR. This report must be posted within 24 hours, followed by a final report one month later. Cyber threats must then also be reported.

In addition, the NIS2 also forces you to sit down with suppliers. Because what if there is a cyber incident at one of your suppliers? Cyber criminals can also attack your organization through the network of one of your (external) partners. The way suppliers and partners have arranged their security therefore directly affects your own security. Here too, risks must be identified, and agreements made. Who is liable for the (lost) costs in the event of a cyber incident? Also, this must be regulated in contracts.

Because cyber security is a specific discipline, it is advisable to use the expertise of a legal service provider specializing in it when making contractual arrangements.

The new rules introduced for the first-time are explicit governance requirements that require the board of the entities falling within the scope of the NIS2 to approve and oversee measures for managing cyber security risks. It also requires the board to undergo cyber security training.

Minimum security elements

As for the management of cyber security risks themselves, the proposed revision maintains the open standard that “appropriate” and “proportionate” measures must be taken given the state of technology and the risk involved. What is new is the addition of a few minimum basic security elements that must be observed in any case.

Minimum security elements

Regarding cyber security risk management itself, the proposed revision maintains the open standard that, given the state of the art and the risk present, “appropriate” and “proportionate” measures must be taken. What is new is the addition of a few minimum basic security elements that must be provided for in every case.

These include the following measures:

• Risk analysis

• Incident handling

• Business continuity (backups, etc.)

• Supply chain security

• Apply security in acquiring, developing, and maintaining IT/OT systems, vulnerability management

• Policies and procedures to assess the effectiveness of cyber security measures.

• Basic cyber hygiene and cyber security training

• Cryptography and encryption (if applicable)

• HR, access control & asset management security

• Multi-factor authentication where possible in the organization

Importantly, the proposed NIS2 Directive, unlike the current NIS Directive, introduces explicit requirements for managing third-party risks in supply chains and supplier relationships. This addresses one of the most important cyber security challenges today.

The proposal provides that the European Commission will determine the technical and methodological specifications of the minimum requirements and provides that entities can (and certain Essential Entities: must) demonstrate compliance by obtaining cyber security certification pursuant to the recent EU Cyber Security Act (CSA).

Useful tips for NIS2

Reporting

Reporting requirements are also extended. For example, all essential and major entities will be required to report on incidents that significantly impact the delivery of their services.

Within 24 hours of becoming aware of an incident, the entity must provide an early warning to the national Computer Security Incident Response Team (CSIRT). Also, within 72 hours, these entities must submit an incident report including the severity and impact of this incident. Finally, no later than one month after submitting the incident report, organizations must submit a final report that includes the following:

• A detailed description of the incident, including its severity and consequences.

• The type of threat or root cause that likely led to the incident.

• Applied and ongoing mitigation measures.

• Where appropriate, the transboundary impact of the incident

Higher penalties

The most salient element of the package of new measures is that EU member states may impose significantly higher administrative fines of up to at least €10 million or 2% of total global turnover (at company level) with the intention that these will also be more rigorously enforced.

Data centers and NIS2

Because of NIS2, data centers will be labeled as critical infrastructure. As described in the previous chapters, this means that additional requirements are imposed on data centers to improve their cyber resilience. Cyber resilience indicates the extent to which an IT environment is free from danger or damage that is caused by failure or breakdown of IT or by misuse. Therefore, it is necessary to continuously improve the overall level of cyber security, which will improve cyber resilience.

STEP 1: Determine which systems are covered by NIS2

Deciding what your Operational Technology (OT) and IT systems are within scope for NIS2 is the initial step towards successful compliance. Key questions include:

• What essential services is the organization providing?

• Does or might the organization fall within the scope of NIS2?

• What new requirements would need to be implemented by the organization within the scope of NIS2?

• If the organization is not itself does not fall directly under NIS2 scope, does it deal with suppliers or customers to which the new rules apply?

• What obligations should organizations attribute to their suppliers or business customers in their contractual arrangements?

As a result, understanding the regulatory requirements will be important for organizations not directly affected by the new Act. It will also be important to determine whether any additional local IT/OT security regulations need to be adopted because of any national regulations.

STEP 2: Adopt cyber security risk management measures

Risk-based cyber security management systems of essential and important entities within the scope of NIS2 will be required to take appropriate technical, operational, and organizational measures to manage the risks posed to the security of the IT/OT assets. They also need to prevent or minimize the impact of incidents. Such measures must take a risk based approach to protect networks and systems, and their physical environment.

You can divide these measures into several parts:

• Inventory information systems

• Making a threat analysis

• Investigate which threats impact your business operations

• Prioritize security risks

• Draw up a security plan; control and mitigate

• Update plan frequently (e.g., 1x per quarter)

During this step, references can be made to measures taken earlier, for example. From ISO 27001 or other certification, the necessary measures and reports are already in place for encryption, for example. In addition to building management systems, and the buildings themselves, OT and Internet of Things (IoT) applications can also be added to the scope of the measure inventory.

For example, the rise of IoT often makes it easier to use sensors. But not all sensors have the same level of security built in. As a result, an incident could occur within your organization.

STEP 3: Document all cases for compliance

Compliance requires substantiation of your organizational measures. If there is for instance no documentation of your cyber security measures, then there is no proof of compliance. Auditors can ask for a wide range of evidence when assessing organizations compliance with NIS2. This step can be overwhelming especially for organizations that are just starting their compliance journey.

A holistic governance system can not only aid in tracking progress and improving documentation, but it can also provide a multi-disciplinary perspective and a solid framework of how companies can manage cyber threats pro-actively and work towards counteracting cyber threats both now and in the future.

ADVERTISING SPACE

As we all know, there have been incredible changes due to the arrival of the internet and artificial intelligence. When almost all is digitalised, advertisements sure aren’t left out. Therefore, Datacentered presents you a brief selection of sparkling advertisements from the eighties and nineties.

PRODUCTION: RHODÉ KOELEWIJN & NIENKE VAN EIJK

ADVENTURES IN THE CLOUD WORLD

Digital Realty announced the launch of its children’s book, ‘Adventures in the Cloud World’ created by Melissa Scholten. The book, aimed at children aged 6 to 12, follows Bella and Nini’s adventures to Cloud World as they seek to better understand the internet after their Wi-Fi turns off at home and their VR glasses won’t work. In the Cloud World, they meet JB, a programmable machine that processes information, who explains how data centers work and asks for their help in the server room to find loose connections.

‘Adventures in the Cloud World’ is now available in six different languages and aims to build children’s curiosity around connectivity in a creative and accessible way. It demonstrates the importance of data centers and encourages children – especially young girls – to pursue science, technology, engineering, and math (STEM) subjects in their education, potentially leading to careers in STEM industries.

SUBSCRIBE TO DATACENTERED

Get your industry insights, research and more with a yearly subscription on DATACENTERED.

The magazine about data centers, cloud and connectivity appears four times a year.

* *Each issue of DATACENTERED costs €30 euro (excluding shipping costs)

2024 Digital Dome, Brussels - June 10 & 11 Digital

DigitalX is the C-level strategy & networking conference for the Belgium Data Center and Digital Infrastructure industry. Based in Brussels, DigitalX provides a platform for thought leaders and industry Xperts to establish plans for the future of the digital industry.

WELCOME EVENING - Monday June 10

CONFERENCE DAY - Tuesday June 11