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Criticism Rains Down Over Cloud Data Centers

Steve Leone, Associate Editor, RenewableEnergyWorld.com
May 03, 2012  |  8 Comments

Knowledge has always been power, but how that information is stored has emerged as one of the most challenging issues facing the evolution of technology.

We’re connected digitally as never before and the ubiquitous nature of smartphones and tablets only means that the ability to access and share information must become cheaper and faster. This shift in how we seamlessly integrate technology is the byproduct of a cloud computing revolution that’s been led by some of the biggest names in technology, companies like Google, Apple and Facebook.

Consumers may associate these companies with their headquarters in places like Silicon Valley. But the world’s computing power is churned out in monolithic data centers spread  across the globe. Some of these sprawling complexes consume enough energy to power a small city. And their meteoric rise in importance has mostly been fueled with sources like coal and nuclear power.

That’s the finding of a Greenpeace report that takes a closer look at the impact of cloud computing and the energy requirements that come with it. (Yes, this report was the kickoff for a series of high-profile protests meant to shame many of the companies cited.) Even as most IT and data-centric companies tout their green credentials, the reality is that few are making transparent efforts to bring their energy consumption in line with their public stances. However, the report also lists some of the success stories and some of the companies that are assuming a leadership role in adopting renewables.

Failing Grades

The report finds that three of the largest companies that have built their futures on cloud computing have done relatively little to make renewable sources a vital part of their future. Amazon, Apple and Microsoft each rely heavily on fossil fuels. Many others, including HP, IBM, Oracle and Twitter, don’t fare much better.

According to the report, Amazon “does not appear to have made any purchases or investments in renewable electricity for its facilities.” Apple, meanwhile, has planned for onsite renewable generation at its new iCloud data center in Maiden, N.C. But that investment will power only 10 percent of the center. As for Microsoft, the report’s authors argue that the company has failed to use its buying power or its lobbying prestige to force change.

While it’d be easy to say that many companies are merely choosing fossil fuels over renewable sources, it’s also a reality that they’re choosing to cluster their location in places where coal and nuclear already dominate. Their very presence is spurring growth in these two sectors and the companies are gobbling up the cheapest alternative in order to feed the bottom line. Rather than becoming catalysts that drive utilities and governments toward cleaner renewable sources, they’re helping to perpetuate the use of fossil fuels. And the more the companies build up their presence in clusters, the more the local economies become dependent on nonrenewable sources. At that point, change becomes virtually impossible in the short-term.

Success Stories

Some companies, though, are striving to build their energy futures on renewable sources. Google, Yahoo and Facebook are the three giants that are taking the biggest leap in this regard, and other smaller companies are making even bigger wholesale changes.

Google has made headlines as a key investor in renewable technology, but it’s also become an innovator of how to use that technology to power its own business. Google recently entered into two 20-year power purchase agreements for more than 100 megawatts from a wind energy developer in Iowa and Oklahoma, states where the company operates large data centers. Google has also launched Google Energy, a subsidiary that allows it to act like a utility that can buy and sell electricity onto the grid.

Yahoo and Facebook have made strides by choosing to locate to sites where they could secure large amounts of existing hydro power. Yahoo set up a data center in Lockport, N.Y., and Facebook built an operation in Lulea, Sweden.

And in Iceland, where nearly 100 percent of electricity comes from geothermal and hydro, Greenqloud — a small company that bills itself as a green competitor to Amazon Web Services — established a data center on a former NATO Air Force base. Iceland, hailed for its renewable sources and its fast connection times to the U.S. and Europe, sees itself becoming a major player in cloud computing.

8 Comments

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ANONYMOUS
May 5, 2012
GeraldR,

In the near term, the cost of domestic US power from both RE and conventional sources is dropping.

As for Google becoming a utility, that is just smart business. Their data centers require huge amounts of reliable power, and the cost of that power is a big factor in their business operations. Becoming a utility allows Google to have more control over their own energy costs long term. Delta Airlines has recently done the same thing by buying their own jet fuel refinery.

It's all about controlling costs long term.
David Bainbridge
David Bainbridge
May 4, 2012
Sorry but the Greenpeace report was full of shoddy research. They simply "guessed" what the power requirements should be for a datacenter. Apple has publicly stated that the datacenter in North Carolina will be powered 80% by renewable energy and the new one they will be building in Oregon will be 100% powered by renewable energy. I would not be surprised if Apple actually releases their energy usage and renewable energy generation in the future.

Greenpeace has done more harm then good by ridiculing companies that are actually making a difference. Greenpeace was also the one on their yearly report on toxins in computers that gave Apple a poor score even though they were the only ones actually doing anything about it. How many other companies are using PVC free power cords? What about BFR free flame retardants? They gave high marks for Dell for instance because they SAID they were going to do something (and NEVER DID!). Instead they pick on high-profile companies whether they deserve it or not so they can make front page on some news website.
Fred Widicus
Fred Widicus
May 4, 2012
Rod,
If nuclear plant owners are willing to pay insurance premiums that are based on risk then I'm all for nuclear powering everything. But of course we both know that will never happen since it makes nuclear impossible to finance. Bottom line is that nuclear needs a massive insurance subsidy in order to pencil. Liability caps are subsidies--arguing to the contrary will make you look even more like a lobbyist. Refuting common sense is one of the bigger tasks for the nuclear lobby.
BTW--Apple's PR about the data center in North Carolina is loaded with inconsistencies--Apple needs some help with solar.
Gerry Wootton
Gerry Wootton
May 4, 2012
Here's a business case: the cost of electricity from non-renewable sources is going up while the cost of energy from renewable resources is going down. At the same time, the selling price for computing services is going down. Developing renewables cost money up front but the run rate is very low so investment in renewables is a way of ensuring future competitiveness.

One key constraint on data center power costs is efficiency. Conventional power is distributed as AC with moderately good stability; consequently, data servers must be connected through power inverters which puts losses into the system and which must have local backup. Apparently, Googles approach is to use DC distribution with storage integrated into each server which greatly increases efficiency. Once you go that far, you may as well have power served up 'your way' which makes on-site generation attractive; after all, no utility is going to sign up to a 100% security of supply or 1% voltage regulation or share the costs of local QoS measures. For a data center, the raw cost of electricity at the curb is not the most important consideration.

It's well and good to obsess about the mote in your neighbor's eye but consider the millions and millions of computing devices connected to the grid through cheap and nasty wall-warts, inefficiently sucking power from a grid supplied primarily by dirty power sources. Perhaps it's time to get a little greener at home.

If there's any good intentions behind some company's attempt to go green ... good on them. If it's just a matter of economic sense ... good on them anyway. The key to successful business is to produce value to the customer as efficiently as possible - not to produce cheap goods as cheaply as possible.
Carlo Franco
Carlo Franco
May 4, 2012
These data centers need to switch to the POET Technology!
POET is extremely versatile, it can be used for super fast computing and large data transmissions, POET also produces far less heat while using 80% less energy than the 'old' current technologies. POET can also be used in the superior HCPV solar panels of OPEL Technologies in combination with their single & dual axis trackers. So if the companies mentioned above are wise enough they have to make some drastic changes and get away from polluting energy sources!
Robert Hall
Robert Hall
May 4, 2012
Gee, where to start? How about Idaho National Laboratory?
Rod Adams
Rod Adams
May 4, 2012
I'm sorry, but why should anyone fault a company that needs a lot of power and chooses to locate in areas where that power happens to be relatively cheap?

More to the point, why in the world is it supposed to be a problem if the cheap power comes from a grid with a strong base of emission free, low marginal cost nuclear power stations?

Uranium and thorium are cheap, plentiful and incredibly concentrated. They are a wonderful alternative energy source to burning stuff - coal, oil, natural gas, biomass - because of the inevitable need to dump many millions of tons per year per large facility.

A 1000 MW nuclear energy plant produces just 16 tons of well behaved, easy to store solid material that has never hurt anyone. What is Greenpeace's problem and why does Mr. Leone work so hard to promote their point of view?

Rod Adams
Publisher, Atomic Insights
ANONYMOUS
May 3, 2012
The key point of this article is the part talking about how Google has become a defacto utility, allowing them to buy and sell electrical power on the market. That's where the money in RE is made. They can buy grid power for their data centers when it's cheap, and they can sell excess power from their wind farms when grid power is expensive.

Google is first and foremost a business enterprise, not a philanthropic effort.

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Steve Leone

Steve Leone

Steve Leone has been a journalist for more than 15 years and has worked for news organizations in Rhode Island, Maine, New Hampshire, Virginia and California.
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