Keeping juiced
By Max Smetannikov
Owners of data centres that house everything from corporate records to Internet content are exploring building their own power facilities, as well as other options, as they face tight supplies and rising costs of electricity.
Managed Web hoster Digex, for one, is looking into erecting its own natural-gas-powered turbines in front of its data centers. Companies such as Digex are worried that a lack of electricity will cripple their ability to scale their fast-growing and power-hungry businesses. They're also worried that deregulation, which has made power generation a private business in half the states in the U.S., will result in wild fluctuations in seasonal energy prices.
Digex is evaluating one plan to set up several turbines the size of tractor trailers in front of data centres and run them seasonally, said Bill Masker, senior director of facilities and infrastructure. Another option would be to run the turbines year-round, using the public power grid as a backup and selling excess power. Digex has even considered setting up a joint venture to actually run its power operation.
With California's recent brownouts heightening concern about power, other Internet data companies are looking to forge closer ties with local utilities or sign national supply contracts.
An average data centre consumes as much power as 5,000 to 10,000 homes. Some of the bigger centres, such as the 180,000-square-foot Equinix Internet Business Exchange, consume as much power as six baseball stadiums, according to Jay Adelson, Equinix's founder and chief technology officer. With Level 3 Communications, Qwest Communications International and Sprint as the latest players to commit to building more of such facilities, data centre electricity demand will keep zooming.
Colo.com cut its energy costs by negotiating a power contract with the help of a national utility and, as a result, was able to lower costs in smaller markets. "Because we have a predictable demand, national utilities - with their expertise in commodities and hedging business - can help us go to energy providers in a given market and get a more cost-competitive buy on a long-term contract," said Jim Smith, CTO at Colo.com, which plans to have 47 facilities in the U.S.
Once a data centre operator grows to a meaningful size, Smith said, there are plenty of choices among national power companies acting as consultants, including Enron and The Williams Companies.
Another way to ensure energy availability is to negotiate special status with the local power company so that the data centre is one of the last operations to be cut off should there be a brownout. Terremark Worldwide, the company building the network access point for the city of Miami and the first operator of a data centre in China, is negotiating for just such a deal with Florida Power and Light.
"We try to get ourselves designated as a utility," said Brian Goodkind, chief operating officer at Terremark. "Then you are less likely to be subject to power outages than anyone else. And if the power does go out, you are more likely to get it back first."
Companies that know the power industry are jumping into the fray. Enron, which owns both data and energy business units, already has plans to develop power plants dedicated to data centre support.
"We believe players in our market, like Enron, will address our needs," said Lloyd Howison, senior manager of construction and engineering for Web hosting at WorldCom. "Besides, we feel it is our responsibility to deal with any contingency."
Data centre architects such as Howison develop elaborate backup systems in case a power outage hits. Most of these facilities are equipped with backup diesel generators that can keep servers online from two days to a week.
