1

AN INDUSTRY REVIEWTHE OPPORTUNITY

PROGRAM PLANNINGA GO -TO -MARKET PLAN

Utility EE Programs for Data Centers and IT

MARK BRAMFITT, P.E .BRAMFITT CONSULTING

WWW.MARKBRAMFITT.COM

2

What is this sector all about?•ICT: Information and Communications Technology

•Distributed Information Technology (like desktops and mobile technologies)

•Data Centers: everything from server closets to utility-scale stand-alone facilities

ICT accounts for 3.7% of global energy use.

Distributed IT accounts for a lot, with 2 billion PCs expected to be in use in 2014.

Data Centers account for ~1.5% of US energy use

10 Billion or more mobile devices are expected to be sold globally in the next decade, as we move

from “wired” to wireless internet era

3

Energy Issues Abound

“Over the next five years, power failures and limits on power availability will halt data center operations at more than 90% of all companies.”

AFCOM Data Center Institute’s Five Bold Predictions, 2006

“By 2008, 50% of current data centers will have insufficient power and cooling capacity to meet the demands of high density equipment.”

Gartner press release, 2006

“Survey of 100 data center operators: 40% reported running out of power, cooling capacity and, to a lesser extent, space without sufficient

notice.”Aperture Research Institute

4

It Turned Out Not To Be So DireWhile some portions of the sector – notably utility-scale centers – did grow significantly in past three to five years, the sector as a whole idled through the economic decline.

2006 EPA study by Jonathon Koomey; 2000-05, use doubled

Updated this year for The New York Times: 2005/10 growth only 36%

5

Data Center Definitions

Server closet – <200 square feetServer room – <500 square feetLocalized data center – <1,000 square feetMid-tier data center – <5,000 square feetEnterprise data center – >5,000 square feet“Utility Scale” data centers – MW

6

From Closets to…

7

“Datacenters” Come in all Shapes and Sizes

Type Server Closet Server Room Localized Data Center Mid-tier Data Center Enterprise-Class Data Center

Scope Secondary computerlocation, often outside of IT control, or may be a primary site for a small business

Secondary computer location, under IT control, or may be aprimary site for a small business

Primary or secondarycomputer location, under IT control

Primary computing location, under IT control

Primary computing location, under IT control

Power/cooling Standard roomair-conditioning, no UPS

Upgraded room airconditioning,single UPS

Maintained at 17°C; some power and cooling redundancy

Maintained at 17°C; some power and cooling redundancy

Maintained at 17°C; at least N+1 power & cooling redundancy

Applications Point-specific applications

Departmental or point-specificapplications

Some enterprisewideapplications, businesscritical

Some enterprisewideapplications, businesscritical

Enterprisewideapplications,mission critical

Sq ft <200sq ft <500sq ft <1,000sq ft <5,000sq ft >5,000 sq ftResponse to downtime

Within one day Within four hours Within two hours Within minutes; may have hot site for redundancy

Immediate; has hot site for redundancy

US data centers (2009 est)

1,345,741 1,170,399 64,229 9,758 7,006

Total Servers(2009 est)

2,135,538 3,057,834 2,107,592 1,869,595 3,604,678

Average serversper location

2 3 32 192 515

2,580,369

Source: IDC Special Study, Data Center of the Future, Michelle Bailey, et. al. Filing Information: April 2006, IDC #06C4799

8

Over Half of Servers Are Outside Datacenters

Source: IDC Special Study, Data Center of the Future, Michelle Bailey, et. al. Filing Information: April 2006, IDC #06C4799

Servers in“Satellite

Server Rooms”57%

Servers in “Corporate Datacenters

”43%

Server Closet17%

Server Room24%

Localized Data Center16%

Mid-tier Data Center

15%

Enterprise Datacenter

28%

Percent of Servers

9

Almost All are Satellite Server Rooms

Server Closet52%

Server Room45%

Localized Data Center2%Mid-tier Data Center

0.4%

Enterprise Datacenter0.3%

Percent of Rooms

“Satellite Server Rooms”99.3%“Corporate

Datacenters”

0.7%

Source: IDC Special Study, Data Center of the Future, Michelle Bailey, et. al. Filing Information: April 2006, IDC #06C4799

10

Opportunities…

• Customers are facing power capacity issues in their existing data centers as they face IT growth

• The cost of energy over the life of a piece of IT equipment often exceeds its purchase price

• Utility-scale data center deployments are hampered by availability of power capacity

• For SMBs and small commercial facilities, IT energy use can be a significant portion of office energy use

• Some utility-scale operators are competing on the basis of energy efficiency

11

Spotlight On Efficiency

Industry taking actiono IT manufacturerso Infrastructure equipment manufacturers

Industry associations active

Utilities, governments initiating programs

12

Potential Energy Savings: Data Centers

20-40% savings possibleAggressive strategies – better than 50%

savingsShort paybacks – one to three years

commonPotential to extend life, capacity of

existing data center infrastructure

But there is no silver-bullet technology to get there – in fact, there are thirty plus

BBs!

13

• Airflow management• Free cooling – air or

water• Adjust environmental

conditions/controls• Centralized air handlers• Low pressure drop

systems• Equipment efficiency• Cooling plant

optimization• Close-coupled cooling• Direct liquid cooling• Heat recovery

• UPS, transformer efficiency

• High voltage distribution

• Premium efficiency motors

• Direct Current power• Standby generation• Right sizing/

redundancy• Lighting – efficiency

and controls• On-site generation

Electrical• Power supply

efficiency• Power management• Virtualization/

consolidation• Load shifting• Multiuser

computing/thin client

• Storage (many strategies)

• ENERGY STAR®-rated equipment

IT

Efficiency Measures

Cooling

14

And Don’t Forget DesktopsGreat set of energy efficiency measures that are fully vetted

EnergyStar®-rated equipment

Network power management software

Thin clientShared PCsRefresh

15

Energy-Efficient IT Equipment

ENERGY STAR® productso Desktop computers, laptops, printerso Monitorso Enterprise serverso Storage (pending)o Uninterruptable power supplies (pending)

16

A FULLY-INTEGRATED PROGRAM, SPANNING THE GAMUT OF EFFICIENCY

PROGRAM OPTIONS, CAN CERTAINLY BE DONE.

THERE ARE CHALLENGES THOUGH, AND A PHASED APPROACH IS RECOMMENDED

What Role for Utilities?

17

End-to-end Program PortfolioKey activities for a comprehensive program portfolio

Customer Education and Training

Marketing and Vendor Outreach

Customer OutreachTechnical AssistanceIncentive and Rebate

ProgramEvaluation, Measurement,

and Verification

18

Rebates and IncentivesDeemed savings (rebate) programs are few and far between, and may best be applied mid- or upstream.

Deemed savings (rebate) programs Some IT equipment classes and

measuresCalculated incentives for

retrofit projectsRetrocommissioning or tune-

up service programs (for data center airflow management measures)

New construction incentives

19

Utility Program Obstacles (No Offense…)

Lack of suitable program manager/championEM&V risk for some technologies and

portfolio componentsPoor visibility into vendor sectorLack of utility cooperation for mid/upstream

programsAvailability of competent engineering supportAvailability of competent/experienced ESPs

20

What to do?A phased approach can get you in the market fairly quickly

Phase One (Year 1) Offer deemed rebates for selected

measures (desktop and virtualization)

Offer customer training sessions (invite vendors and your account reps!)

Do vendor outreach – speak at their events

Identify qualified technical support contractors

Consider issuing RFP for ESP services for Phase Two

Consult with your EM&V group early and often

21

Next…Move to a robust portfolio deployment

Phase Two (Year Two) Offer incentives for retrofit

projects – consider limiting measures

Offer airflow management retrocommissioning program, either through ESPs or qualified vendors

If your market needs it, offer a new construction incentive program

Ramp up your internal staff – this portfolio requires close program management

22

MARK BRAMFITT, P.E .3055 GOUGH STREET, #100SAN FRANCISCO, CA 94123

PHONE 415.407 .6291MARK@MARKBRAMFITT.COM

Interchange

information technology utilities data centers energy efficiency demand response smart grid program design training strategic engagement impact

23

And Now…

Let’s hear from a program manager and ESP who has shown the capability of running programs for the data center and information technology sector…