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Irish government restricts data center development

Ireland’s The Commission for Regulation of Utilities (CRU) has decided to limit the impact by imposing a de facto moratorium on new data center development in the Dublin metropolitan area.

Ireland’s national transmission operator EirGrid said in response that it would only consider new applications for grid connection on a case-by-case basis. The restrictions could reportedly last until 2028.

Martin Shanahan, CEO of Ireland’s Industrial Development Authority (IDA), recently said that new data centers “are unlikely to occur in Dublin and the East Coast at this time.”

Google has asked such Irish regulators not to impose a moratorium on data center development in the country.

In The Commission for Regulation of Utilities (CRU) filing, the company said search and cloud companies must “absolutely” avoid a moratorium on data center development.

Google said such a ban would send a “wrong signal” about Ireland’s digital economy ambitions, and would affect the country’s infrastructure, according to a Freedom of Information request first reported by The Irish Times. It adds that it makes further investment “impossible”.

In the filing, Google called for more transparency about where the Irish network has existing power capacity, as well as being clearer and more open about EirGrid’s projections of data center power usage growth. I think you need to.

Growing Demand for Cloud Computing, Google’s Proposal

Google, which launched its first data center in Ireland in 2012, has proposed a new pricing structure for data center operators who reserve more capacity than they ultimately need or grow to that capacity too slowly. bottom.

“Transmission tariffs can be designed so that consumers who are not seeing increased demand towards maximum reserved capacity will be charged more than consumers who are demonstrating an increase each year.” says.

EirGrid and politicians have previously suggested moving data center development to the west of Ireland (away from Dublin’s constrained areas and closer to renewable energy sources), but Google says this is not a viable solution. I point out that it is not.

“The demand for cloud computing in Dublin is growing. We are unable to provide services.”

Another AWS filing says Ireland has missed opportunities in the past to address supply issues.

“Over the past decade, we have had opportunities to do reinforcement work, prepare the grid for growth and investment, and prepare the grid for more intermittent integration of resources,” he said.

Both the Social Democrats and the People Before Profit parties have been calling for a nationwide moratorium on future data center projects for the past 12 months. The PBP bill was an absolute ban on data centers, liquid natural gas plants and new fossil fuel infrastructure.

In Dublin last month, South Dublin County Council (SDCC) voted to block future data center construction in the county as part of a new development plan.

What is the background behind the Irish government’s moratorium on data center development?

Irish Government Behind Data Center Development Moratorium

The Irish government’s achievement of emissions and renewable energy targets is behind this.

According to EirGrid, data center energy usage is projected to increase by 9TWh by 2030, ranging from 23% to 31% of Ireland’s grid supply in 2030. This comes at a time when the government wants to reduce emissions by 60-80% by increasing the share of renewable energy. At the same time, governments want to decarbonise by moving heating and transportation to electricity, further increasing demand on the grid.

According to The Irish Times, EirGrid has agreed to connect an additional 1.8GW of data centers to the grid, with current peak demand of around 5GW, and a further 2GW of applications ready. That’s it.

The Government Statement on the Role of Data Centers in Ireland’s Enterprise Strategy 2018, published in 2018, emphasized the positive role of data centers in the country’s economic performance. However, it will now be “aligned with sectoral emissions caps and renewable energy targets, concerns about continued security of supply, and demand flexibility measures currently needed. In order to secure it, it will be reviewed. “In addition, further tightening of regulations will be considered,” it is reported.

Will it work or will it backfire?

The Irish government imposes a moratorium on data center development, which is in high demand worldwide. It seems that the moratorium continues while receiving a warning from Google. Will this decision work or will it backfire? We will keep an eye on trends.

NTT DATA Co., Ltd. is working to remote/automate equipment inspection work using robots at the data center “NTT Shinagawa TWINS DATA Building” (hereinafter referred to as “Shinagawa Data Center”) operated by the company. announced that it has confirmed that it is possible to reduce the equipment inspection work that was previously done by about 50%.

From April 2023, NTT DATA will proceed with the introduction of robots to data centers nationwide.

Background of robot introduction

NTT DATA explained that the building management industry, including data centers, is facing a serious manpower shortage, and that facility management work, in particular, is facing a shortage of skilled workers, and that there is a need for labor savings and more efficient work implementation.

Among facility management operations, the company believes that inspection work is highly effective in reducing manpower and that remote/automated operations are feasible through the use of digital technology, and has been conducting verification for practical application at its Shinagawa Data Center.

Overview of Robot Introduction and Changing Checking Tasks

In this initiative, a robot automatically patrols a predetermined inspection route, taking pictures of meters, lamps, and facility exterior, and acquiring environmental data such as odors using sensors, thereby replacing the work of measuring meters, checking lamps, and checking for abnormalities in appearance and unusual odors that had previously been performed by humans.

In this method, a single camera or sensor can be used to inspect multiple locations, and there is no need to modify the current equipment in operation, making it cheaper and simpler to achieve remote/automated operation than other methods such as installing IoT cameras and sensors for each inspection target or converting to smart meters.

The robot used in this project is a next-generation avatar robot “ugo Pro” modified for facility inspection work in collaboration with ugo Corporation, a manufacturer of business DX robots.

In order to capture detailed meter readings, the robot is equipped with a 4K camera with higher image quality than the standard model, and multiple devices such as an odor sensor, microphone, and thermo camera can be mounted on the ugo itself to expand its applications depending on the inspection items.

The robot can be operated using only a PC, and its travel route can be set with no code, making it easy for on-site personnel to use the robot. The robot can switch between automatic traveling and remote control, and can be used not only for automatic inspection work, but also for multiple applications, such as work support from a distance.

These features not only allow the robot to handle a variety of inspection items, but also to expand its applications to include remote work support and construction attendance.

By using robots and sensors to remotely/automatically perform inspection work, not only can work hours be reduced, but also the threshold values for determining abnormalities, which used to rely on human senses, can be quantified to enable detection of abnormalities without relying on skilled workers.

In addition, by making it possible to remotely perform tasks that could only be performed onsite, including work support and construction attendance, it is expected to support flexible work styles and secure new workers.

About the future

In the future, NTT DATA aims to expand the scope of automation to include recording and reporting work that currently requires personnel to perform, and to reduce the time required for inspection work by up to 80% by promoting linkage with meter reading systems and abnormality detection AI.

NTT Data will also work to enhance facility management operations, such as advanced abnormality detection and predictive maintenance of facilities, utilizing data acquired by robots and sensors.

Starting in April 2023, the initiative will be rolled out sequentially to 15 data centers nationwide.

Furthermore, based on the knowledge gained from these efforts, the company aims to offer the service commercially as a remote/automated service for facility inspection operations by the end of FY2023.

For commercial provision, ugo will utilize the new robot “ugo mini” developed by making use of the knowledge obtained through joint verification with NTT DATA to develop remote/automation solutions for facility management operations, from consulting for introduction. NTT DATA provide one-stop support from system construction to operation to solve customer problems.

The day of full-scale deployment of robots for facility inspection operations at data centers is eagerly awaited to help resolve the serious labor shortage.

On November 24, 2022, Kyocera Communication Systems Corporation (KCCS) announced that KCCS will begin construction of a zero-emission data center in Ishikari City, Hokkaido, Japan, in December 2022, with the data center scheduled to open in the fall of 2024.

In 2019, KCCS announced plans for a zero-emission data center in Ishikari, Hokkaido, which will operate on 100% renewable energy.

Subsequently, due to a change in the originally planned baseload power supply plan, the power supply configuration and data center design were revised, and now the company has announced the start of construction and opening schedule.

The data center to be constructed will be located in the Ishikari Bay New Port area of Ishikari City, Hokkaido, with a site area of approximately 15,000 square meters, total floor space of approximately 5,300 square meters (at the time of opening), and 400 racks (at the time of opening).

Toward Achieving Carbon Neutrality by 2050

In Japan, local production and local consumption of renewable energy is an important theme for achieving carbon neutrality (virtually zero greenhouse gas emissions) by 2050, as is the decentralization of data centers in the “Digital Rural City State Concept” being promoted by the government. The introduction of “real renewable energy,” which reduces environmental impact to plus or minus zero through the purchase of environmental values such as non-fossil certificates, is progressing.

To this end, expansion of “direct use of renewable energy” is also needed to further increase the amount of renewable energy introduced.

However, it is not easy to achieve “direct use of renewable energy” in large-scale demand facilities such as data centers, as securing stable renewable energy power and economic efficiency is a challenge.

Ishikari City has been selected as a “Decarbonization Leading Region (1st round)” by the Ministry of the Environment in a publicly solicited project to achieve carbon neutrality by 2050.

In addition, KCCS has formulated the “Redesigning the Region through Local Production of Renewable Energy and Decarbonization,” a measure aimed at zero carbon, and is aiming for a decarbonized industrial cluster by supplying renewable energy to the data center cluster and surrounding facilities in the Ishikari Bay New Port area.

The zero-emission data center will utilize the abundant renewable energy sources in the region, and a new solar power plant owned by KCCS will be built in the vicinity of the data center to directly utilize those renewable energy sources.

In addition, in order to operate the data center while simultaneously ensuring the “reliability,” “environmental friendliness,” and “economic efficiency” of multiple renewable energy sources, KCCS will build its own power supply and demand control mechanism utilizing storage batteries and AI technology.

KCCS aims to demonstrate the possibility of local production for local consumption of renewable energy through the “data center business operated on 100% renewable energy” in Ishikari City, as well as to contribute to regional revitalization through decentralized data storage in Japan and the creation of jobs for data center technicians and energy-related engineers. The project also aims to contribute to regional revitalization by creating jobs for data center technicians and energy-related engineers.

Expectations are high for the opening of a “zero-emission data center” to achieve carbon neutrality by 2050.

What is Water Positive

Water positive means providing more water than you consume. With freshwater shortages becoming an issue around the world, companies are making various efforts to secure water.

There are two main ways to do it: either reduce consumption or increase supply.

There are ways to reduce water consumption, such as water conservation and recycling, and ways to increase water supply, such as investing in areas and businesses with high water stress, such as water scarcity and water pollution.

AWS Committed to Reducing Water Use in Data Centers

Amazon Web Services (AWS) is the new hyperscaler that has committed to making their business water positive.

At the AWS re:Invent event held in Las Vegas, the company announced a policy to achieve water positive by 2030, returning more water to the community than it uses directly in its operations.

AWS CEO Adam Selipsky said:

“Water scarcity is a major problem around the world, and with today’s announcement by Water Positive, we are committed to doing our part to help solve this fast-growing problem.

To ensure universal access to water, we need to develop new ways to conserve and reuse this precious resource. While we are proud of what we have achieved so far, we also believe that more can be done.

We are committed to leading water stewardship in our cloud business and giving back more water than we use in the communities in which we operate. We believe this is the right thing to do for the environment and our customers. ”

The company’s efforts to achieve this goal include: analyzing water usage in real time, using IoT technology to identify and fix leaks, using recycled or rainwater for cooling, and reusing water multiple times. It includes replenishment as well as reimbursement activities, including the availability of on-site water treatment systems, and where possible, funding for waterless cooling and various water replenishment activities at the facility.

In 2021, AWS said it achieved a global Water Use Efficiency (WUE) index of 0.25L water per kWh. In Ireland and Sweden, AWS says it doesn’t use water to cool its data centers 95% of the year.

According to a US Department of Energy report, the average evaporative cooling data center WUE is 1.8L per kWh.

In the UK, AWS is working with The Rivers Trust and Action for the River Kennet to create two wetlands on tributaries of the River Thames.

“England’s rivers are national treasures and we are delighted to partner with AWS and work with our member trusts here to protect the Thames and its tributaries,” said Mark Lloyd, CEO of The Rivers Trust. said.

“AWS’ commitment to be water positive by 2030 drives the actions needed to help restore rivers and water resources impacted by climate change.

We look forward to expanding our relationship with AWS and using this partnership to demonstrate similar avenues for other companies to jointly support water management activities that improve the resilience of rivers. ”

Data centers use a lot of water for cooling, but it’s not clear how much water the industry actually uses.

Researchers estimate that on average in the US, 1 MWh of data center energy consumption requires 7.1 cubic meters of water, but this can vary widely by region and facility.

Efforts of Google, Microsoft and Meta

Google, Meta and Microsoft have committed to being water positive by 2030, but many of their facilities now use millions of gallons of water per day.

Colocation and peering service provider CyrusOne, which owns and operates over 40 carrier-neutral data centers in North America, Europe and South America, claims several of its facilities are water positive. 

Morningstar Sustainalytics, a leading ESG research, ratings, and data provider that has helped investors around the world develop and implement responsible investment strategies, previously released a report showing that Microsoft is leading the market in water conservation efforts.

European data center operators pledged to the European Commission earlier this year to reduce water usage to up to 400ml per kWh of computer power by 2040.

Due to the effects of global warming and population growth, water shortages are becoming a problem around the world. We will continue to keep an eye on the water positive initiatives of major companies.

Sorry, this entry is only available in JA.

Sorry, this entry is only available in JA.

Sorry, this entry is only available in JA.

Sorry, this entry is only available in JA.

NVIDIA Under Antitrust Scrutiny: Implications for the AI Industry

The U.S. Department of Justice (DOJ) has launched a formal investigation into NVIDIA, the world’s leading semiconductor company, raising concerns about potential antitrust violations. The DOJ has issued subpoenas, signaling a potential antitrust lawsuit against the company.

NVIDIA holds a dominant market share in AI semiconductors, with approximately 80% of the data center market in 2023, according to Omdia. The DOJ’s investigation focuses on whether NVIDIA has engaged in anticompetitive practices that hinder other companies from entering the market.

Beyond hardware, NVIDIA provides software optimized for AI development. The DOJ is examining whether the company has bundled hardware and software, offering preferential treatment to customers who purchase both.

CUDA: The Industry Standard

NVIDIA’s CUDA, a software development environment tailored for its GPUs, has become the industry standard for large-scale computing tasks, including training generative AI models. This dominance is due to NVIDIA’s extensive promotion and the close integration of CUDA with its hardware.

If found guilty of antitrust violations, NVIDIA could face significant penalties and be required to change its business practices. However, the widespread adoption of CUDA presents a challenge, as it would be difficult to quickly replace with alternative solutions.

Implications for the AI Industry

The DOJ’s investigation into NVIDIA highlights the growing scrutiny of Big Tech companies. Recent antitrust cases against Google and Apple set a precedent for increased regulatory oversight.

The outcome of this investigation could have far-reaching implications for the AI industry. If NVIDIA is found to have engaged in anticompetitive practices, it could lead to increased competition in the AI semiconductor market, potentially benefiting AI developers and end users. However, it could also disrupt the current AI ecosystem and lead to uncertainty in the market.

Conclusion

The DOJ’s investigation into NVIDIA marks a significant development in the AI industry. As the investigation unfolds, it will be essential to monitor the potential impact on AI innovation, competition, and the broader technology landscape.

In this article, we delve into the recent developments of Sakura Internet, a domestic company that has been at the forefront of GPU cloud services in Japan.

Founded in 1996 by current president Kunihiro Tanaka while he was still a student, Sakura Internet has grown significantly since its inception. In 2011, the company constructed the Ishikari Data Center, one of Japan’s largest suburban data centers, and strengthened its physical infrastructure and cloud services. From the dawn of the internet, Sakura Internet has adapted its services to meet the evolving needs of its customers. 

Competition with Foreign Services and Market Changes

As discussed in a previous article, Japanese companies have become increasingly reliant on foreign services for AI development. Sakura Internet has been no exception, facing intense competition from foreign IT giants over the past five years.

The impact of foreign services is substantial on a national level. Japan’s “digital deficit,” the outflow of funds due to payments for overseas digital services, has more than doubled in the past decade, reaching 5.5 trillion yen. With the limited presence of domestic services, the situation has led to concerns that “the more advanced cloud services become, the more Japan’s trade deficit will increase.” The recent depreciation of the yen has further exacerbated this issue.

However, the market environment surrounding Sakura Internet is undergoing significant changes. With the digital transformation (DX) initiative gaining momentum, all companies are aspiring to become IT companies. The COVID-19 pandemic accelerated the digitalization of society, leading to a substantial expansion of the market.

Moreover, the rising costs of foreign cloud services due to the weakening yen and the growing expectations for the government cloud market have increased demand for domestic public clouds like Sakura Internet.

Against this backdrop, Sakura Internet was selected by the Digital Agency as the sole domestic provider qualified to offer government cloud services, albeit with a condition to meet certain functional requirements by the end of 2025. Prior to this certification in November 2023, only foreign providers such as AWS, Microsoft, Google, and Oracle were eligible. Sakura Internet’s certification marked a significant milestone as the first domestic company to achieve this recognition.

Expansion into Asia through Partnership with Equinix

Sakura Internet is further expanding its business operations. On October 1st, the company announced a partnership with Equinix, a leading data center operator, aiming to enter the Asian cloud services market. Sakura Internet plans to lease space in Equinix’s data centers and install its own servers, enabling it to provide cloud services overseas. The company also intends to strengthen its cloud services in Japan using a similar approach.

Equinix operates data centers in countries such as Singapore and Indonesia. While the specific countries and timelines for Sakura Internet’s services have yet to be finalized, the company is moving forward with detailed plans.

A Growing Sense of Expectation

With its aggressive stance and focus on expanding into the Asian cloud market, where US IT giants hold a significant share, Sakura Internet is generating increasing anticipation. We will continue to follow the company’s progress and provide updates on future developments.

We’ve previously reported on Sakura Internet’s active involvement in the AI data center business within Japan. Now, another domestic company has made a significant move in this space.

Japan Policy Investment Bank and Mizuho Bank Invest in Highreso

The Japan Policy Investment Bank and Mizuho Bank, among others, have announced a combined investment of 10 billion yen in the startup Highreso. Japanese companies have been insufficiently providing the high-performance computing infrastructure necessary for AI development, leading to a heavy reliance on overseas services. This investment, which is unprecedented in scale for a startup, aims to bolster domestic AI development.

Highreso operates a GPU-dedicated data center and provides a cloud service called “GPUSOROBAN.” The company has established Highreso Kagawa Co., Ltd. in February 2024 to open a generative AI data center in Kagawa Prefecture.

Highreso Kagawa is a special purpose company established to open a generative AI data center in Kagawa Prefecture. The company plans to develop the data center by partially renovating existing research facilities like “RIST Kagawa” and the gymnasium of the former Ayakami Middle School.

Amid concerns about the excessive concentration of data centers in metropolitan areas, this project aims to reduce development costs by utilizing existing regional facilities and provide services to a wide range of domestic businesses.

The project has been certified under the Ministry of Economy, Trade and Industry’s cloud program and is expected to utilize approximately 7.7 billion yen in subsidies from NEDO (New Energy and Industrial Technology Development Organization).

Highreso CEO Yoshiyuki Shikura expressed his enthusiasm, stating, “We will build a solid domestic infrastructure from the regions and revolutionize the AI industry.”

Moving Away from Overseas Dependence

Until now, Sakura Internet has been the most prominent domestic company actively involved in the GPU cloud service business. The announcement of this new domestic company’s plans has garnered significant attention. It remains to be seen whether Highreso’s project will be a game-changer in reducing dependence on overseas services. We will continue to follow the progress of this project and also provide updates on Sakura Internet’s efforts.

At the end of August, the world’s attention was drawn to the earnings announcement of US semiconductor giant NVIDIA. Around the same time, there were new announcements regarding the domestic semiconductor industry in Japan. In this article, we will introduce these two topics.

1. NVIDIA’s Q2 Earnings Announcement

NVIDIA, a global leader in AI semiconductors, announced its earnings for the second quarter (April-June) on August 28th, reporting record-high revenue and net income.

Revenue surged 2.2 times year-on-year to $30.04 billion. In particular, the data center segment, which houses most of its AI products, generated $26.272 billion, accounting for 87% of the total.

The importance of data centers has increased significantly with the advent of generative AI. It is said that generative AI requires 10 times more power than a typical search to answer user queries. Additionally, data centers consume a vast amount of electricity by performing calculations on massive amounts of data using numerous servers in a short period.

NVIDIA plans to start mass production of its AI-dedicated GPU, “Blackwell,” later this year.

Although production delays have been reported, it is said that generative AI will become 30 times faster and 25 times more energy-efficient.

Once the shipment of Blackwell begins in earnest, interest in data centers is likely to further increase.

2. Expectations for Preferred Networks (PFN), Developing Domestic Semiconductors (for Generative AI)

SBI Holdings, a major internet financial company, announced a capital and business alliance with Preferred Networks (PFN), a startup that provides AI services.

The two companies will jointly develop AI semiconductors by incorporating PFN’s AI semiconductor design know-how.

Founded in 2014, PFN is a startup that vertically integrates the development and provision of hardware and software necessary for the practical application of AI technology. The company handles everything from the design of AI semiconductors and development of peripheral software to the development of supercomputers using its own AI semiconductors, construction of generative AI foundation models, and development of applications that utilize them. Since 2023, it has been providing computational platforms using its own AI semiconductors to external users.

Recently, the global demand for AI semiconductors has been rapidly increasing due to the advancement of generative AI technology, leading to a supply shortage. Furthermore, it is expected that power consumption from AI development and utilization will continue to increase, necessitating the development of high-performance and low-power consumption AI semiconductors.

Through this collaboration with PFN, the SBI Group expresses its enthusiasm in strongly supporting the domestic dissemination of next-generation AI semiconductors and promoting PFN’s business expansion, thereby contributing to the development of the semiconductor industry in Japan.

Additionally, by manufacturing PFN’s next-generation AI semiconductors, the SBI Group expects to increase its recognition in the manufacturing industry and create a semiconductor ecosystem in Miyagi Prefecture, where its planned business site is located, leading to high economic effects within the region. This, the company believes, will enable a significant increase in the added value of the SBI Group and establish a role model for industrial creation in local areas starting with the semiconductor industry.

We will continue to follow the developments of how the collaboration between the SBI Group and PFN will contribute to the revitalization of Japanese industries and the semiconductor industry.