Data center outages are caused by various issues, including natural disasters, cyber-attacks, and even man-made disasters. However, the most common cause is a need for a proper power source.
In recent years, many data centers have begun relying on natural gas as a power source. This has gone smoothly for many facilities. However, many data centers in Europe are now dealing with a severe issue regarding supply shortages.
The gas shortage caused more than one Data Center outage in Europe.
The European gas market faces a supply shortage caused by political, technical, and economic factors. The under-supply of natural gas in Europe has resulted in a price rise and supply shortages in different regions that depend on importing liquid natural gas (LNG).
During the past few days, some European countries have experienced gas shortages due to supply disruptions in Germany and the Netherlands. The turmoil of the German LNG terminal has led to significant increases in prices in spot markets, as well as contract prices for delivery in February. Our Q1 GDP forecast is now at risk.
Data Centre outages caused by a gas supply shortage have already begun to hurt the European economy. There have been numerous reports of lengthy outages at data centers throughout Europe. One study estimates that there were approximately 6 hours of downtime at specific data centers during peak usage hours on Saturday evenings (6 pm-12 am). The data centers affected included those operated by Société Générale (France), Deutsche Bank (Germany), Telefónica (Spain), and Engie (UK).
Natural gas is the most significant fuel used to power data centers.
An interruption in the natural gas supply in the UK affected several data centers in Europe. The disruption was caused by a lack of transmission capacity, which limited the availability of natural gas to power the facilities.
The natural gas shortage in Europe has made it difficult to keep data centers running. Natural gas is the most significant fuel used to power data centers, and the low supply of natural gas caused by the cold winter weather has caused several European countries to face a shortage.
The high electricity demand leads to many blackouts in large cities like London, forcing the government to temporarily cut power to data centers to preserve energy for hospitals, transport hubs, and other critical facilities.
Natural gas fuels about 80% of all the electricity generated in Europe. The biggest natural gas consumers are industry and power plants, which use more than half of all natural gas produced worldwide. Data centers are also one of the fastest-growing natural gas users as they consume much energy while running. Natural Gas Europe requires extensive infrastructure, such as pipelines and storage facilities, to be transported from the field to local distribution networks.
Gas Prices Spike in European Country
Gas prices are skyrocketing in the European country after a pipeline explosion, and the government is struggling to keep things running smoothly. Families are racing to fill their tanks before they’re completely out of gas, the only vehicle on the road besides public transportation. With a fuel shortage, traffic is at a standstill, and people can’t get to work or school since most kids have been sent home early. There’s yet to be a word on when the supply will be restored.
The UK’s gas cost has declined steadily over the last three years. And this trend is projected to continue for at least another year. It was predicted that by April 2023, UK consumers would pay nearly seven times as much in gas prices as they do now.
Solutions are always available for every problem
Some may be surprised to learn that the European Union’s gas crisis is affecting more than just transportation—the shortage of natural gas has been causing electricity disruptions for some companies, including data centers.
Data center companies and users in Europe can save up to 70% of current electricity costs if they relocate their data centers to Indonesia. The electricity in Indonesia sourced from natural gas is still very cheap. The price of electricity per MWh in Indonesia is around USD 92. This figure is much cheaper than the cost of electricity per MWh in Europe, which reaches USD 310.
This strategy is crucial to do now for them to prevent data center outages caused by the scarcity of energy supply in Europe.
Indonesia already has giant data centers such as Google, Amazon, and Azure. In 2023 there will be a green data center in South Jakarta. APIC Group and Goldman Sachs’s investment of USD 200 million will produce an environmentally friendly data center with a capacity of 20 megawatts.
Investing in an Indonesian Data Center
Data centers in the United States and Europe tend to be more expensive than those in Indonesia. For this reason, any company interested in storing its data center in North America and Western Europe should consider Indonesia’s data centers.
European data centers may have less accessibility to European markets than American data centers. For example, if you want to host your data center in Paris, France, you’re limited to international customers who can access your website from France. An Indonesian data center provider is better for you if you want to expand the market.
Indonesia offers an excellent alternative for businesses that store their data center outside of Europe. Indonesia’s government has made a goal of having 20% of its electricity come from renewable sources by 2025, so the country is a prime candidate for investment in green energy data centers.
The surge in electricity prices in Europe was due to a shortage of natural gas supplies. The war between Russia and Ukraine is the leading cause of this. Unfortunately, no one can predict when the war will end. If the war ends, it is also unclear whether Russia will redirect its gas supplies through the Gazprom pipeline to Europe.
Meanwhile, European data center users can start transferring their data centers to Indonesia to prevent data center outages due to the scarcity of natural gas energy for electricity.
At least for a disaster recovery center, which can prevent your company from experiencing downtime. In addition, data center costs in Indonesia are still much cheaper. Indonesia’s data center’s reliability is the same as in Western Europe and with data centers in the USA. The quality of center data in Indonesia has followed world standards, such as from The Uptime Institute.
Make a decision right now, don’t wait until your new data center outages start looking for data centers in Indonesia.