Tips For Handling the Amsterdam Data Centre Crisis

Both the Dutch government and municipalities have banned data centre building in Amsterdam as well as power upgrades for existing facilities. The initial data centre ban was lifted several years ago, but stringent energy efficiency standards have deterred subsequent building and created an image of a city hostile to business. On top of that, the municipality is denying power upgrades. For example, the only way to get incremental power right now at AM5, arguably the single best peering point in the city, is to get vacated or novated space. A client of mine asked for space there, but Equinix replied that power was maxed out and authorities had frozen the total power available to AM5 at the current level. Some local observers argue these moratoriums largely reflect infrastructure neglect in areas like transmission, but I suspect at least in part it is an attempt to appease the Dutch public over power rates. The current Dutch government qualifies as very right wing populist with a host of wrong headed policies on immigration and EU integration. It is shame because the Netherlands has been traditionally a bright spot in the EU economy with a strong dose of pragmatism in its politics. I am big believer in letting the market allocate resources, not states. 

The goods news is that the large Nikhef facility at Science Park still has  excess space and power, which are priced at cost leading to substantial savings over the for-profit alternatives. In addition, the data centre charges no recurring cross connect fees, only a small one time set up charge. There are also no set up charges for fractional colo installations which meet the needs of the majority of new customers. Nikhef hosts a variety of major peering exchanges including AMS-IX and NL-IX, so Tier 2 ISP have excellent peering opportunities. For example, AMS-IX has in excess of 850 participants with NL-IX having 548 clients. It is a large menu. 😀

Map of Amsterdam Data Centres


Comments

Post a Comment

Popular posts from this blog

Breaking Story: Facebook Building Subsea Cable That Will Encompass The World

Image
Several sources have whispered in my ear that META is planning a new 16 fibre pair cable that will encompass the world going from the US East Coast to the US West Coast via the Atlantic, Indian Ocean, and the Pacific. The most ambitious subsea project ever undertaken. I do not know the exact routing. I know that the cable will launch from the American East Coast and will go down the West African Coast to South Africa and then head straight to Mumbai. It is not clear if Europe will be online or not. From Mumbai it will head straight to Australia and then up to the US West Coast. I speculate that there may be branching units to Singapore, Malaysia, and Indonesia. But the basic routing is US/South Africa/India/Australia/US. What is not clear is if there will be branching units to add more countries to the cable.  This semi-secret cable reflects META's desire for network resiliency given the four month Red Sea down time that AAE-1 and other subsea cables suffered during the first half ...
Read more

Facebook's Semi-Secret W Cable

Image
 A few days ago I wrote that Facebook was planning a new subsea cable directly linking the US East Coast to South Africa, then up to India, onward to Australia, and finally to the US West Coast. Clearly resiliency is a big theme. It avoids Lisbon, Marseille, Egypt, the Red Sea, and Singapore. All choke points due to their telecom hub status. Note that the map below shows lots of branching units, but I don't have insider confirmation although they make perfect sense. The cable is 16 fibre pairs.  This cable may be heavily influenced by AI considerations. AI data centres require lots of space and power. The US, South Africa, India, and Australia are good candidates for AI data centres in terms of space. All of them except for South Africa have modern power grids. But South Africa is still the best place on the continent for large scale AI facilities. An AI theme makes particular sense given the cable's high latency. An AI data centre does not directly serve custo...
Read more

How To Calculate An IRU Price For a 100G Wavelength

The IRU price should reflect your forecast of future lease revenes. If the current MRC is high and prices have been stable and are expected to remain so, then the opportunity cost of selling an IRU is high. You are sacrificing a lot of lease revenue if you sell that capacity. In this case the upfront IRU price should equal the three year MRC multipled by 4 to 6 years. So if the three year Faster cable MRC is $17K, then 48x to 72x times that number is fair value. So 48*$17K=$816K. Plus a standard 4% annual fee to cover the wavelength's share of maintenance and operations.. So strong markets and tight capacity mean that leasing is more attractive than IRUs to the supplier. Vice versa, the buyers will be desperate to lower their long term costs via an IRU. In my example, $816K divided by 15 years equates to $4500 per month excluding O&M. Bad for the seller. Good for the buyer. That's why so many of you are looking for IRU capacity to resell to your clients, but finding few se...
Read more