Utility EE Programs for Data Centers and IT

1. Utility EE Programs for Data Centers and IT An industry review The opportunity Program planning A go-to-market plan Mark Bramfitt, P.E. Bramfitt Consulting www.markbramfitt.com

2. 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 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

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. 2006 EPA study by Jonathon Koomey; 2000-05, use doubled • Updated this year for The New York Times: 2005/10 growth only 36% It Turned Out Not To Be So Dire While 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.

5. Data Center Definitions Server closet – <200 square feet Server room – <500 square feet Localized data center – <1,000 square feet Mid-tier data center – <5,000 square feet Enterprise data center – >5,000 square feet “Utility Scale” data centers – MW

6. From Closets to…

7. “Datacenters” Come in all Shapes and Sizes 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 Servers in “Corporate Datacenters” 43% Servers in“Satellite Server Rooms” 57% Source: IDC Special Study, Data Center of the Future, Michelle Bailey, et. al. Filing Information: April 2006, IDC #06C4799

9. Almost All are Satellite Server 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 action • IT manufacturers • Infrastructure equipment manufacturers • Industry associations active • Utilities, governments initiating programs

12. Potential Energy Savings: Data Centers 20-40% savings possible Aggressive strategies – better than 50% savings Short paybacks – one to three years common Potential 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. Efficiency Measures • UPS, transformer efficiency • High voltage distribution • Premium efficiency motors • Direct Current power • Standby generation • Right sizing/ redundancy • Lighting – efficiency and controls • On-site generation Cooling Electrical IT • 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 • Power supply efficiency • Power management • Virtualization/consolidation • Load shifting • Multiuser computing/thin client • Storage (many strategies) • ENERGY STAR®-rated equipment

14. EnergyStar®-rated equipment • Network power management software • Thin client • Shared PCs • Refresh And Don’t Forget Desktops Great set of energy efficiency measures that are fully vetted

15. Energy-Efficient IT Equipment ENERGY STAR®products • Desktop computers, laptops, printers • Monitors • Enterprise servers • Storage (pending) • Uninterruptable power supplies (pending)

16. What Role for Utilities? 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

17. Customer Education and Training • Marketing and Vendor Outreach • Customer Outreach • Technical Assistance • Incentive and Rebate Program • Evaluation, Measurement, and Verification End-to-end Program Portfolio Key activities for a comprehensive program portfolio

18. Deemed savings (rebate) programs • Some IT equipment classes and measures • Calculated incentives for retrofit projects • Retrocommissioning or tune-up service programs (for data center airflow management measures) • New construction incentives Rebates and Incentives Deemed savings (rebate) programs are few and far between, and may best be applied mid- or upstream.

19. Utility Program Obstacles (No Offense…) Lack of suitable program manager/champion EM&V risk for some technologies and portfolio components Poor visibility into vendor sector Lack of utility cooperation for mid/upstream programs Availability of competent engineering support Availability of competent/experienced ESPs

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

21. 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 Next… Move to a robust portfolio deployment

22. Interchange Mark bramfitt, p.e. 3055 Gough Street, #100 San Francisco, CA 94123 Phone 415.407.6291 mark@markbramfitt.com 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…