< PreviousPullen, CyrusOne, feels that significant developments regarding the consolidation of the data centre industry will be seen in 2023. He says: “This will eventually result in a number of closures, particularly of smaller players. While this will present challenges for some, I think this will act as a reset for the industry, allowing the market to normalise once again.” Dyke, Allied Telesis, believes WiFi will continue to grow as the main access technology, “It will require a more powerful infrastructure and advanced feature set to support the growing demands of the user. The capability to manage mobility, device location, and the capability to adapt autonomously to environmental changes will be the main characteristics of new wireless solutions. To accommodate this increase in complexity, smart network management tools - incorporating elements of artificial intelligence - will become more widely adopted.” Carlini, Schneider Electric: “Both IT and Telco service providers are trying to expand their level of services. Internet service providers can put new, smaller, distributed cloud data centres closer to the user to offer a better experience in the form of increased redundancy and reduced latency. Traditional Telco providers are also starting to leverage the internet by adding more services through internet-attached computing. In the future, we expect that internet- attached, legacy Telco data centres and distributed cloud data centres will converge into Multi-access Edge Computing (MEC) facilities. “When Telco base stations offer software-defined services (as with 5G slicing and NFV), they are called MEC/edge data centres, and when distributed cloud data centres include Telco controls, they are called MEC/Edge. MEC/edge acts as a data centre that operates both IT cloud services and Telco functions and controls at the Networks Edge. These will be owned and operated by service providers.” Pestridge, Telehouse, believes organisations will leverage connected ecosystems to support the growth and resilience of their IT infrastructure. “By integrating on-premises, colocation, cloud and edge delivery options, they can extend network reach while improving performance and reducing latency and costs. Telehouse recently found that 28% of IT decision-makers prioritise connectivity when picking a data centre provider – a figure that is only set to increase as more businesses realise the benefits of having the right connections.“ What new trends do you think will emerge or consolidate over the next year? What new skills will be needed to deal with innovation? Fridström, Arelion: “For operators, one of the biggest changes is the move towards more open and disaggregated networks, which creates huge opportunities for transparency between networks on performance, and the ability to mix hardware from different manufacturers, to name but a few. Coupled with this, operators are now embracing ethernet across their networks, which is great news for customers, and means that network engineering skills that may have been lost within enterprises are going to be more important moving forward. Whether it is working with routing software or managing ethernet networks that extend across backbones, these skills will be key and have been largely lost to the hyperscale cloud providers. Now they are needed back in enterprises.” There will be a need to evolve the skills of the IT team says Dyke, Allied Telesis: “IT engineers will need to be able to dovetail from network management to network security, but also to take control of all other services that run over the network (eg DVS or Building automation). To enable this new skill, a new family of tools are required that can automate large parts of the IT activity, providing a complete vision of any aspect of the network in a simple way and recommending the actions the human operators should take. Ultimately, these actions will also be automated once full intent-based management tools become mainstream. Sustainability skills will also need to be developed, and quickly says Carlini, Schneider Electric: “Building out distributed edge and MEC/edge data centres at scale is emerging and needs to be accomplished in a cost-effective, resilient and sustainable way. Deploying MEC/edge data centres at scale poses unique challenges related to power and cooling, remote management and environmental impact, due to a wide variety of locations and environments. To protect the planet, service providers must elevate sustainability from a concern to a core value to minimise energy use, GHG emissions and waste.” Pestridge, Telehouse, refers to the IT and digital skills gap: “Smart outsourcing will plug IT skills gaps. With the IT skills gap set to continue through 2023 and beyond, organisations will need to embrace more innovative ways of attracting, developing and retaining new talent. At the same time, more businesses will outsource their IT infrastructure to a trusted provider, leaning on the knowledge, experience and expertise of colocation data centre operators. This will help fill IT skills gaps in-house, while also providing greater levels of resilience, uptime and cost efficiency during the challenging years ahead.” Mattias Fridström VP Arelion Chris Dyke, Sales Director UK & Ireland Allied Telesis Steven Carlini VP Innovation and Data Centre Schneider Electric TRENDS AND PREDICTIONS www.networkseuropemagazine.com 20Networks and security. Are they an ever- stronger combination? Fridström, Arelion says that many companies focus on endpoint security, but network security is vital to address the evolving attack vectors of the modern threat landscape. “Our 2022 threat report shows that attacks are decreasing in frequency yet increasing in size and sophistication. Due to these trends, 24/7/365 automated network security is critical for high-risk industries, namely automotive manufacturing and banking, where large Distributed-Denial-of- Service (DDoS) attacks present dire consequences. At Arelion, we're working to enhance DDoS mitigation as the public internet becomes the preferred underlay for many companies. It is worth noting, too, that we are seeing some very exciting developments in the field of quantum security that will be hugely beneficial, such as new ways to transmit encryption keys. These may not be as sci-fi and futuristic as people think.” “Global carriers will see growth potential in the enterprise market amid increased spending on cloud Infrastructure-as-a-Service (IaaS) to enable digitalisation, projected to reach $118.8B by 2025. With this increased spending, there will be a need for enhanced security on the network as more non-latency sensitive data travels the public internet. Enterprises will also need more network diversity in their connectivity services because added diversity removes a single point of failure for network outages. Enterprises will increasingly bypass local providers and purchase raw bandwidth and cloud services from carriers to access the benefits of diversity and security backed by a global networking footprint.” Dyke, Allied Telesis, says, “Protecting the network means protecting the first line of attack, and this will become more and more important. Firewall and AI-based systems able to detect attacks, together with autonomous security systems able to take immediate action and create a self-defending network, will become the obvious way to protect company assets. Not only should network devices be developed and optimised for security and data privacy, but the network itself must be designed, implemented and managed with security as a chief concern. Carlini, Schneider Electric, expands, “Securing access to edge IT sites begins with basics like the use of a virtual private network (VPN) that employs encrypted tunnels, implementing firewalls and using access control systems. These networks should be implemented using a “defence-in-depth” network (DDN) design. A DDN approach secures edge computing functions and maintains the availability of those functions and communication paths. The strategy of DDN for the edge is to develop security zones with different defensive elements in each. “Another recommended practice related to network design is the use of intrusion detection system (IDS) appliances placed at each edge computing site. These can detect potential malevolent traffic that could potentially damage, disrupt service and impact availability to the edge environment. Secure Access Server Edge (SASE), which combines SD-WAN deployments with embedded security specifically designed for edge deployments, will be critical to increase the strength and security of networks.“ Networks Europe would like to thank Steven Carlini, VP of Innovation and Data Centre, Schneider Electric Chris Dyke, Sales Director UK & Ireland, Allied Telesis, Mattias Fridström, VP, Arelion, Mark Pestridge, Senior Customer Experience Director at Telehouse, and Matt Pullen, EVP, Managing Director, Europe at CyrusOne for the insights and contribution to this article. Mark Pestridge Senior Customer Experience Director Telehouse Matt Pullen EVP, Managing Director Europe CyrusOne “It is worth noting, that we are seeing developments in the field of quantum security that will be hugely beneficial, such as new ways to transmit encryption keys.” TRENDS AND PREDICTIONS www.networkseuropemagazine.com 21Revealed: The six trends we’ll see in the data centre sector in 2023 TRENDS AND PREDICTIONS www.networkseuropemagazine.com 222023 is poised to be a year of growth and of action on sustainability and climate change and this will be reflected in the trends we expect to see influencing the data centre industry. Here are the six key trends gathering momentum in 2023: Modular and offsite builds – the cost effective and fast way to scale up capacity Global demand for data continues to grow, with research suggesting that the amount of data created, consumed and stored in 2023 will reach 120 zettabytes (ZB) – this is forecast to rise to 147ZB in 2024 and 181ZB in 2025. To keep pace, data centre operators will be increasingly looking for ways to ‘compress the program’ so that additional capacity is brought online sooner. This means we will see a renewed focus on offsite manufacturing and standardised modular build solutions in 2023 as these give data centre operators the power to scale quickly and in a cost-effective way. Modular electrification solutions use standard blocks of power which can be added to as a data centre expands, making them a flexible choice for sites in growth. And, they are cost and time effective too, as using prefabricated and predesigned solutions Sustainability, giving back and the increased uptake in new technologies are among the big trends for data centres in 2023. Danel Turk, ABB Solution Portfolio Manager for Data Centres, explains why this year marks a change in direction for many data centres and outlines some of the trends influencing priorities. Danel Turk ABB Solution Portfolio Manager for Data Centres ed: ix trends we’ll n the data centre r in 2023 TRENDS AND PREDICTIONS www.networkseuropemagazine.com 23 1like eHouses and skids, can reduce the build completion time by as much as 50% compared to the traditional ‘stick built’ approach. Maximising renewable power with battery storage Sustainable power will be key for data centres in 2023 and we will see greater take-up of enabling technologies such as battery energy storage systems (BESS), which are becoming more mainstream. BESS allows data centres to store renewable energy generated on-site (from solar PV panels or a wind turbine) to be used when it's most needed. Add Artificial Intelligence to battery storage, and operators can use data acquisition, prediction, simulation and optimisation to automatically charge and discharge the battery to make it even more effective and efficient, and prolong its life cycle. This technology is already here and we’ll see more interest in it as digitalisation tools become more widely accepted by data centre operators. BESS is also being hailed as a sustainable alternative to diesel gensets. Currently, generators can’t be run on hydrogen, which is being largely viewed as the clean fuel of the future. That said, successful trials with ammonia fuel cells may provide suitable carbon-free backup power for smaller data centres (up to 300kW). With carbon reduction targets laid out for 2025 and 2030 in Europe already, investing in new, green technologies like battery storage now, is essential. Planning will be key as longer lead times should be expected with demand high and rising. Giving back to the Grid Another trend we expect to see this year is data centres becoming more active players in the power ecosystem, by doing more to support the electricity grids they rely on. In 2021, data centres in the Republic of Ireland used 14% of the country’s electricity, so last year the Government there published a statement to say that going forward, any new facilities needed to work more positively with the grid – for example, using available capacity, increasing renewable energy use and alleviating constraints. Given that data centres consume around 4% of the world’s electricity a year, it is only a matter of time before more countries follow suit. One way for data centres to be prosumers as well as consumers is to utilise their UPS battery storage capacity to provide frequency balancing services. Simply fit Frequency Regulation Functionality (FRF) to the UPS and this allows the grid to tap into a data centre’s unused reserves of power to respond to varying load demands and maintain frequency levels, thus reducing the risk of blackouts. Supporting local homes and businesses Giving back is a theme for 2023, and this year we expect to see more data centre operators exploring projects and technologies which allow them to utilise their heat waste. Data centres generate large amounts of excess heat. Although it is low-grade heat, it can be piped to a heat pump plant and used for district heating. This year, a project to take excess heat from Meta’s Tietgenbyen data centre in Denmark will go live, providing heat to more than 12,000 homes in the nearby city of Odense. The European Commission has suggested that data centres over 1MW should explore whether excess heat can be used in district heating supply. For data centres in more remote locations where this may not be possible, heat waste could be used to provide heat for nearby industrial applications such as commercial greenhouses. Evolving data centre designs to cope with extreme heat Last year’s extreme temperatures in Europe, where both Google and Oracle were forced to shut part of their systems when UK temperatures topped 40°C, have prompted many data centre operators to review their cooling strategies ahead of summer 2023. Extreme heat stresses cooling systems by making components, such as compressors, pumps and fans, work harder than usual, which increases the likelihood of failures. Right-sizing plants and having appropriate backup power such as gensets and battery energy storage as part of a proper contingency plan for extreme heat could all be part of the solution. In addition, we are coming closer to the tipping point for the transition to liquid cooling in data centres. This has been standardised by big names such as 3M and it allows greater rack density than ever before (up to 500kW). With greater cooling capacity achievable, this could provide a significantly more reliable and energy- efficient solution compared to mechanical cooling which currently accounts for around a third of energy use in a data centre. Cost optimisation – generating long-term savings and benefits Cost optimisation allows operators to manage, and, in some cases, extend the life cycle of key plant while helping to meet energy and carbon reduction targets and avoiding unnecessary downtime. Cost optimisation can be carried out for all major equipment in a data centre facility. For example, with digital energy management tools, you can easily see what is performing at its optimum and what equipment is not operating efficiently and may be in need of repair or replacement. Even a 1% improvement in the battery 2 3 5 4 6 TRENDS AND PREDICTIONS www.networkseuropemagazine.com 24efficiency of a UPS will reap significant cost benefits over its 10-year lifecycle. Data centres have operated in ‘island mode’ in the past, but in 2023 we will see a change in this thinking as we move into a critical period in the fight against climate change. Energy and cost efficiencies are a must, new technologies are a must, and engaging with the community is a must – whether that’s through finding uses for waste heat or providing balancing services to aid the energy transition. Demand for data is only going one way, and with more electric vehicles on the road, the rollout of 5G improving latency and the growing use of AI and machine learning, data centre capacity needs to be there to facilitate our electrified world. Growth in the data centre sector must be sustainable and have a positive impact in the communities where facilities are located - this is certainly something we will see a greater focus on this year. “Cost optimisation can be carried out for all major equipment in a data centre facility. Even a 1% improvement in the battery efficiency of a UPS will reap significant cost benefits over its 10-year lifecycle.” TRENDS AND PREDICTIONS www.networkseuropemagazine.com 25To say that 2022 has been a disruptive year is an understatement. Much of last year’s outlook for the data centre sector was concerned with balancing the growth in digitalisation with more sustainable practices. But we had no way of knowing about the impact that the ongoing massive disruption to the geopolitical landscape would have – not least that we’d be facing a severe energy crisis. The current situation brings a sharper focus on the importance of addressing the issues raised last year, as well as highlighting new challenges. It’s not all doom and gloom, though - ongoing digitalisation, for example, represents new opportunities for the sector. Here, then, are some of the developments – for good or ill – that we can expect to see in the data centre sector during 2023 and beyond. Ciaran Forde Data Centre Segment Leader Eaton TRENDS AND PREDICTIONS www.networkseuropemagazine.com 26Data centre outlook for 2023 TRENDS AND PREDICTIONS www.networkseuropemagazine.com 27Energy uncertainty The biggest issue we face right now is the extraordinarily high price of energy. The cost has skyrocketed to the point where it becomes a real concern for large energy users, such as data centre owners. Can they pass these costs on to their customers? Will the prices continue to rise? Do they have the cashflow to manage this in their business model? While the argument for a renewable generation strategy has always been around sustainability and the environment, today we need in-region renewables to protect supplies for European countries primarily for reasons of energy security and cost. Microsoft, for example, is taking a step in this direction. Its Dublin data centre features banks of lithium-ion batteries approved for connection to the grid to help grid operators provide uninterrupted power should renewable sources such as wind, sun and sea be insufficient to meet demand. This need to accelerate the generation of renewable energy is, effectively, an extension of last year’s outlook. But it’s much more acute now. It should serve as a wake-up call to governments across EMEA that they can no longer rely on traditional energy sources. TRENDS AND PREDICTIONS www.networkseuropemagazine.com 28Broken supply chains Covid-19 had a tremendous impact on global supply chains across many sectors. However, once the pandemic receded, businesses everywhere were lulled into something of a false sense of security, believing they’d been through the worst. No one was expecting a second body blow, a geopolitical crisis that’s proven to be even more disruptive to some supply chains - particularly the semiconductors and base metals vital to data centre construction – than Covid. As a high-growth market, the data centre industry is highly sensitive to supply chain disruption, especially at a time when it’s looking to scale up. The industry as a whole is still struggling with supply chain disruption. And the current geopolitical landscape means this is only likely to continue. Tackling growing complexity The requirement for digital growth has reached an unprecedented level. Every possible avenue has been explored to fulfil that need more simply, more cost- effectively, and in the shortest possible time. But doing so can be contradictory to the nature of many highly complex, mission-critical environments. A data centre is home to a wealth of different technologies – from HVAC systems to mechanical and structural engineering, IT and compute. The challenge is trying to accelerate such highly complex, interdependent types of environments to maintain the current trends for digitalisation. To this end, data centre designers, operators and vendors are fashioning systems that will reduce this complexity while respecting an application’s mission- critical nature. The industrialisation, or modulisation, of data centres, where prefabricated, pre-engineered, and pre- integrated units are delivered to the site, is one way of making the design and construction of a data centre less complex while ensuring faster time-to-market. Moving beyond traditional clusters Until now, London, Dublin, Frankfurt, Amsterdam and Paris have been the traditional data centre clusters, either because companies are headquartered in these cities, or because they are natural economic clusters with a wealth of telecom connectivity and ideal client profiles. To provide quality of service and to be in closer proximity to centres of population and economic activity, it’s becoming more favourable to build data centres in the secondary cities of the main economic nations and in the capitals of smaller economic nations. Competition among the data centre providers is strong, therefore many of these Tier II cities and nations provide for growth for existing operators or a low point of entry for new operators. For this reason, you will see increased activity in cities like Warsaw, Vienna, Istanbul, Nairobi, Lagos and Dubai. But this expansion is not without its challenges. For instance, considerations around the availability of appropriate sites, power, and engineering labour all add complexity to an organisation’s overall operations. And many of those countries may not have a lot of experience or personnel to help with the design, construction and operation of a new data centre. Overcoming such challenges will require data centre owners to relearn the industry each time they move into a new geography. Regardless of such challenges though, new markets continue to open up, with many operators trying to achieve first-mover advantage in developing secondary markets. In fact, many jurisdictions are welcoming data centre operators with open arms, with some even offering incentives and subsidies to entice them. One thing last year has proved is that we can’t be certain about anything. The after-effects of Covid, and the current geopolitical system have left the sector facing a series of unprecedented challenges. But growth opportunities exist. Trends would indicate that more forward-looking operators will be able to weather the storm, to face whatever the future holds. “The requirement for digital growth has reached an unprecedented level. Every possible avenue has been explored to fulfil that need more simply, more cost- effectively, and in the shortest possible time.” TRENDS AND PREDICTIONS www.networkseuropemagazine.com 29Next >