Data Center UPS Systems Why 1% Efficiency Matters

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1 Data Center UPS Systems Why 1% Efficiency Matters Harry Handlin Director Critical Power Applications, September 18, 2014

2 Key Questions / Problems Addressed: Why efficiency gains of as little as 1 percent for power equipment can significantly impact data center total cost of ownership (TCO). TCO metrics for a typical 10 megawatt data center and why a TCO model shouldn t be abandoned at the power system component selection phase. How data center managers can align CapEx centric purchasing teams with OpEx centric operational teams.

3 The Case for Focusing on Energy Efficiency

4 TCO, Defined Sum of Capital Expenditures (CapEx) and Operational Expenditures (OpEx) Critical metric for determining true long-term cost Lowest purchase price does not necessarily reflect the lowest cost Not using TCO in purchasing high power equipment decisions could cost millions of dollars And this translates to CapEx UPS System Cost OpEx Maintenance Maintenance Contract Battery Replacement Fan Replacement Capacitor Replacement Energy Costs UPS Losses Cooling Energy Total Losses KW Total Losses KWH Total Energy Cost TOTAL UPS TCO

5 Evaluating TCO: Real World Example Automobile Purchase Entry Descriptions Car Buying Scenario #1 Car Buying Scenario #2 Total price of the car, excluding options $25,000 $25,000 Applicable sales-tax percentage 7.35% 7.35% Annual cost of licensing this vehicle $137 $137 Extended warranty cost, if applicable 0 0 Will you be financing this vehicle? Yes Yes Amount of your down payment $2,500 $2,500 Financing rate (APR) 7.9% 7.9% Number of months financed Annual insurance premium $850 $850 Miles you expect to drive car per year 20,000 20,000 Vehicle s estimated MPG rating Local cost of one gallon of gasoline $3.19 $3.19 How old is the car? 0 0 Years you expect to own this car? 5 5 Monthly maintenance & repair costs $35 $35

6 Evaluating TCO: Real World Results Entry Descriptions Car Buying Scenario #1 Car Buying Scenario #2 Tax, license, extended warranty costs $2, $2, Depreciation costs $19, $19, Finance costs $5, $5, Insurance costs $4, $4, Fuel costs $17, $11, Maintenance & repair costs $2, $2, Total cost of buying and owning the car $51, $44, Annual cost to own and operate vehicle Monthly cost to own and operate vehicle Two Automobiles Only difference is MPG: 18 MPG or 28 MPG Net TCO Difference for 5 years: $6,300 or $105/month $10, $8, $ $ Car cost per mile $0.51 $0.45 $900 $850 $800 $750 $700 $650 Monthly Cost Comparison $855 $750 Car Scenario #1 Car Scenario #2 Car Scenario #1 Car Scenario #2

7 What if gas was 3X today s price? 18 MPG Vehicle Fuel cost increases to over $51,650 or 2X purchase price 28 MPG Vehicle Fuel cost increases to over $34,150 or $10K higher than the purchase price This may seem far fetched for an automobile, but the energy cost for a UPS module can exceed the module purchase price in as little as 3 years.

8 UPS TCO ($ MM) Impact of Efficiency on TCO TCO vs Efficiency (10 MW datacenter / 10 yr. life, $.10kW/hr) $12.0 $10.0 $8.0 $6.0 $4.0 OpEx CapEx $2.0 $ % 94% 93% UPS % Efficient UPS % Efficient 96.5% 94% 93% CapEx $2.9 $2.9 $2.9 OpEx $4.4 $7.8 $9.2 TCO Total $7.3 $10.7 $12.1

9 Data Centers: Identifying TCO Variables Site Variables Asset Life (life of data center) UPS capacity Anticipated UPS Load Cost of Electricity Cooling factor Product Variables Purchase Price UPS Efficiency at Load Point Maintenance Contract Cost Battery Replacement Interval & Cost Component Replacement Interval & Cost

10 UPS TCO ($k) TCO vs Efficiency $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 UPS TCO Evaluation Overall Cost Savings Driven by Efficiency (4 MW datacenter / 10 year / $0.10kW/h) CapEx UPS System Cost OpEx Maintenance Maintenance Contract Battery Replacement Fan Replacement Capacitor Replacement $1,000 $0 92% Efficient UPS 93.5% Efficient UPS UPS Energy Cost UPS Maint. Cost UPS Initial Cost GE TLE in Double GE TLE in eboost Conversion 96.5% up to 99% Efficient Efficient Energy Costs UPS Losses Cooling Energy Total Losses KW Total Losses KWH Total Energy Cost TOTAL UPS TCO

11 Purchasing Process Without TCO Criteria Prepare RFQ Specifications Solicit Bids Evaluate Bids Select Supplier (Price & Delivery) Issue PO Purchase decision made without identifying or consulting owner of OpEx budget Project budget and schedule are key points in purchasing decision No credit for better efficiency than originally specified

12 Purchasing Process With TCO Criteria Prepare RFQ Specifications (Remember TCO) Solicit Bids (and TCO info) Evaluate Bids (and TCO) Select Supplier Issue PO Save Dollars Purchase decision made with TCO and minimizing OpEx budget Project budget and schedule are still key points in purchasing decision Suppliers awarded credit in evaluation for better efficiency than originally specified

13 CoreSpace Powering New Quality and Efficiency Challenge Upgrade a 30,000 square-foot Dallas data center by replacing 230 separate single phase uninterruptable power supplies (UPS) to improve power quality and boost managed hosting uptime. Solution A GE three phase UPS system provides both critical backup and clean and consistent power, dramatically managing power anomalies that affect server performance and downtime. Benefit CoreSpace is realizing more than $88,000 a year in energy and cooling cost savings.

14 Questions? Thank you! For more information, contact:

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