Country as a data center specialist: what is Norway going to do
Last month, the Norwegian government published a plan for the development of data center construction. The document tells why building a data center in the country is profitable.
We decided to take a closer look at the document and expert opinions.
/ photo NTNU CC
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The market for data centers in Norway consists mainly of small and medium-sized enterprises. There are not many large-scale projects. Among the famous data centers in Norway is Green Mountain, which is cooled by fjords and is considered one of the “greenest” in the world ( PUE is less than 1.2). There are some more large Digiplex data centers near Oslo.
Now the country has begun a "boom" in the construction of new data centers. For example, in 2017, the Lefdal data center, located inside a mountain in an abandoned mine, began its work - these are 120 thousand square meters of space that will be flooded with server racks. Also , the US-Norwegian organization Kolos and a large Japanese company are planning to build their data center in Norway (it has already signed a contract with the Norwegian energy company Ringeriks-Kraft).
The Norwegian government prepared a document explaining to potential investors why building new data centers in the country is profitable. Some of the reasons given are:
Data centers require large amounts of energy: the largest of them have a capacity of 100 MW and consume about 1 TWh per year. Therefore, among the criteria for the development of the data center industry, electricity prices play an important role.
According to the data for the 4th quarter of 2017, the prices for electricity for businesses, including tax, vary from 29 to 33 ERA per kWh (or about $ 0.04). At the same time, over the past year, the cost of electricity has decreased by 4–8%.
Also from January 1, 2016, Norway reduced the consumer tax on electricity for large data centers. In order for the company to use the preferential tax rate, the data center built by it had to consume more than 5 MW of electricity.
From January 1, 2017, this threshold was reduced to 0.5 MW. And over the next 5–7 years, they are planning to abolish the electricity tax altogether.
A stable supply of renewable energy is an important factor when choosing a place for the data center and the main competitive advantage of Norway. In this country, the share of electricity produced from renewable sources reaches 98%. Most of the electricity is generated by hydroelectric power. In 2013, the country produced 134 TWh of electricity: 129 TWh at the expense of water resources, 3.3 - using solar energy and 1.9 - using wind. For comparison: the Norwegian capital Oslo consumes an average of 9 TWh per year.
So far, the energy obtained with the help of the wind is only a small part, but the percentage ratio may soon change. Norway is developing the direction of wind energy and erecting new windmills every year. In 2016, the construction of the world's first water wind power plant was started . At the same time, the creation of the largest wind power plant in Europe began, which will generate 1 thousand MW by 2020.
Data centers also depend on the reliability of fiber-optic and other communication lines. Therefore, according to the plan , the state will spend 100 million NOK ($ 13 million) on laying fiber optic cables between Norway and other countries.
Transport and Communications Minister Khetil Sulvik-Ulsen (Ketil Solvik-Olsen) believes that laying fiber into other countries and simplifying the rules for excavating to dig trenches for cables will increase Norway’s appeal to investors.
Other sectors will benefit from this: the expansion of the network infrastructure will reduce the burden on the infrastructure of providers in Sweden, through whose communications most of Norway’s traffic to Europe and back now passes.
The development of the data center industry is also largely dependent on the efficiency of the transport infrastructure. A data center can be built anywhere in the country, including in rural areas, but its work and efficient movement of staff will require highways and other transport infrastructure.
To solve this problem, the government will invest NOK 933 billion in the development of transport links in the period from 2018 to 2019.
As noted in the document, this step will simplify movement around the country and make the Norwegian economy more competitive in the European market.
The climate in the country is cold and without sudden drops. The average annual temperature ranges from 0.8 to 3.7 ° C in the “depth” of the country. Therefore, it is possible to cool data centers using free cooling all year round.
In addition, the interior of Norway is practically not exposed to storms, hurricanes and other natural disasters, which guarantees the security of the physical infrastructure of the data center.
According to research, 45% of Norwegians aged 16 to 74 years are familiar with digital technology (the total figure in the European Union is 29%). To increase the number of such specialists, in 2018 the government added 500 budget places for students of IT specialties. In the future, the number of these places will increase, and the state will allocate additional funds for research and development in the field of information technology.
In addition, Norway intends to simplify the procedure for approving applications for the construction of industrial enterprises for Norwegian and foreign investors. As noted by the Minister of Local Government and Regional Development Monica Meland (Monica Mæland), this will allow to stimulate business in Norway and increase the number of jobs.
/ photo by Giuseppe Milo CC
In early 2016, the Norwegian government prepared a document for investors in which it provided a list of criteria for evaluating sites for the construction of data centers. Among them were the following aspects:
Taking into account these requirements and development programs, 31 locations were chosen as potential sites for construction. The list includes, for example, the communes of Alvdal, Rendal, Bodø and Aurland, the city of Ryukan and other localities (the full list is presented here on page 50).
The Minister of Trade and Industry, Thorbjørn Røe Isaksen, said that Norway needs to develop new industrial areas that will create jobs and increase capital turnover in the country. Data centers are one of the most promising industries.
The document noted that the exact benefits that the development of the data center industry will bring cannot be calculated, but they are convinced that the construction of new data centers will lead to the growth of the country's economy.
PS Several materials from the First Corporate IaaS blog:
We decided to take a closer look at the document and expert opinions.
/ photo NTNU CC
')
The situation with data centers in Norway
The market for data centers in Norway consists mainly of small and medium-sized enterprises. There are not many large-scale projects. Among the famous data centers in Norway is Green Mountain, which is cooled by fjords and is considered one of the “greenest” in the world ( PUE is less than 1.2). There are some more large Digiplex data centers near Oslo.
Now the country has begun a "boom" in the construction of new data centers. For example, in 2017, the Lefdal data center, located inside a mountain in an abandoned mine, began its work - these are 120 thousand square meters of space that will be flooded with server racks. Also , the US-Norwegian organization Kolos and a large Japanese company are planning to build their data center in Norway (it has already signed a contract with the Norwegian energy company Ringeriks-Kraft).
Why Norway
The Norwegian government prepared a document explaining to potential investors why building new data centers in the country is profitable. Some of the reasons given are:
1. Electricity and taxes
Data centers require large amounts of energy: the largest of them have a capacity of 100 MW and consume about 1 TWh per year. Therefore, among the criteria for the development of the data center industry, electricity prices play an important role.
According to the data for the 4th quarter of 2017, the prices for electricity for businesses, including tax, vary from 29 to 33 ERA per kWh (or about $ 0.04). At the same time, over the past year, the cost of electricity has decreased by 4–8%.
Also from January 1, 2016, Norway reduced the consumer tax on electricity for large data centers. In order for the company to use the preferential tax rate, the data center built by it had to consume more than 5 MW of electricity.
From January 1, 2017, this threshold was reduced to 0.5 MW. And over the next 5–7 years, they are planning to abolish the electricity tax altogether.
2. Renewable energy sources
A stable supply of renewable energy is an important factor when choosing a place for the data center and the main competitive advantage of Norway. In this country, the share of electricity produced from renewable sources reaches 98%. Most of the electricity is generated by hydroelectric power. In 2013, the country produced 134 TWh of electricity: 129 TWh at the expense of water resources, 3.3 - using solar energy and 1.9 - using wind. For comparison: the Norwegian capital Oslo consumes an average of 9 TWh per year.
So far, the energy obtained with the help of the wind is only a small part, but the percentage ratio may soon change. Norway is developing the direction of wind energy and erecting new windmills every year. In 2016, the construction of the world's first water wind power plant was started . At the same time, the creation of the largest wind power plant in Europe began, which will generate 1 thousand MW by 2020.
3. Communication lines
Data centers also depend on the reliability of fiber-optic and other communication lines. Therefore, according to the plan , the state will spend 100 million NOK ($ 13 million) on laying fiber optic cables between Norway and other countries.
Transport and Communications Minister Khetil Sulvik-Ulsen (Ketil Solvik-Olsen) believes that laying fiber into other countries and simplifying the rules for excavating to dig trenches for cables will increase Norway’s appeal to investors.
Other sectors will benefit from this: the expansion of the network infrastructure will reduce the burden on the infrastructure of providers in Sweden, through whose communications most of Norway’s traffic to Europe and back now passes.
4. Infrastructure and transportation
The development of the data center industry is also largely dependent on the efficiency of the transport infrastructure. A data center can be built anywhere in the country, including in rural areas, but its work and efficient movement of staff will require highways and other transport infrastructure.
To solve this problem, the government will invest NOK 933 billion in the development of transport links in the period from 2018 to 2019.
As noted in the document, this step will simplify movement around the country and make the Norwegian economy more competitive in the European market.
5. Natural conditions
The climate in the country is cold and without sudden drops. The average annual temperature ranges from 0.8 to 3.7 ° C in the “depth” of the country. Therefore, it is possible to cool data centers using free cooling all year round.
In addition, the interior of Norway is practically not exposed to storms, hurricanes and other natural disasters, which guarantees the security of the physical infrastructure of the data center.
6. Specialists and legislation
According to research, 45% of Norwegians aged 16 to 74 years are familiar with digital technology (the total figure in the European Union is 29%). To increase the number of such specialists, in 2018 the government added 500 budget places for students of IT specialties. In the future, the number of these places will increase, and the state will allocate additional funds for research and development in the field of information technology.
In addition, Norway intends to simplify the procedure for approving applications for the construction of industrial enterprises for Norwegian and foreign investors. As noted by the Minister of Local Government and Regional Development Monica Meland (Monica Mæland), this will allow to stimulate business in Norway and increase the number of jobs.
/ photo by Giuseppe Milo CC
Where will build
In early 2016, the Norwegian government prepared a document for investors in which it provided a list of criteria for evaluating sites for the construction of data centers. Among them were the following aspects:
- a) the area of ​​the territory is more than 100 thousand square meters, preferably 400–500 thousand square meters;
- b) power supply - availability of a backup power source, redundancy level N + 1 ;
- c) telecommunications - the level of redundancy N + 2, direct access to international nodes, the use of dark fiber is desirable;
- d) transport infrastructure - asphalted, paved two-lane roads; airport in an hour, preferably international;
- e) urban infrastructure - the city center is 40 minutes away.
Taking into account these requirements and development programs, 31 locations were chosen as potential sites for construction. The list includes, for example, the communes of Alvdal, Rendal, Bodø and Aurland, the city of Ryukan and other localities (the full list is presented here on page 50).
The Minister of Trade and Industry, Thorbjørn Røe Isaksen, said that Norway needs to develop new industrial areas that will create jobs and increase capital turnover in the country. Data centers are one of the most promising industries.
The document noted that the exact benefits that the development of the data center industry will bring cannot be calculated, but they are convinced that the construction of new data centers will lead to the growth of the country's economy.
PS Several materials from the First Corporate IaaS blog:
Source: https://habr.com/ru/post/350354/
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