UNLOCKING THE POWER OF CIRCULAR DATA CENTERS

Ali Fenn, President | ITRenew

100% CircularWe transform hyperscale technology

We catalyze global markets with breakthrough TCO

We maximize lifetime value and sustainability

We make take-use-dispose obsolete with disruptive circular economics

It’s All About the

Hardware…

to be spent on data center systems in 2023

(Gartner, Q1’20)

$215Byears – average hyperscale refresh cycle

3-4

Hyperscalers as % of total DC spend (Synergy

Research, Dec. 19)

33%Enterprise v. Cloud data center spend ($200B total) (Synergy Research, Dec ‘19)

50/50

It’s All About the Hardware…IT Hardware as % of TCO

It’s All About the Hardware…

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Hardware Depreciation Other Costs

IT Hardware as % of TCO

IT hardware = 75%

Are Our Heads in the Clouds?

“The future of electronics may depend on deep sea mining

for minerals”(All About Circuits)

GHG of digital on track to go from 4% to 8%

(UMass)

2016 ewaste = 49m tons, growing to 57m tons in 2021

(United Nations University)

Datacenters powering AI could account for 10% of global

electricity demands by 2025(MIT)

CO2 emissions of digital increased by 450m tons since 2013 in OECD countries, while

globally, overall CO2 emissions decreased by 250 tons over the same period.

(Shift Project)

Computer Power consumption forecast to exceed global energy

production in 2040(Semiconductor Ind. Assoc., 2015)

Data Center IT Growth is ExplosiveServers Deployed, 2019-2023

65 + (14*4) = 121

Data Center IT Growth is ExplosiveServers Deployed, 2019-2023

46M servers to be “EOL’ed” between 2019 and 202365 + (14*4) = 12175

Data Center IT Growth Wasteis ExplosiveServers Deployed, 2019-2023

46M servers to be “EOL’ed” between 2019 and 2023

65 + (14*4) = 12175

START HERE

HYPERSCALE DATA CENTERS

Design and procure hardware that enables circularity

RESPONSIBLE RECYCLING

SECONDARY MARKETS

CSPIndustrialRetailTelco

GamingIoTEnergyEnterprise

…

The Circular Data Center Model

5

LIFETIME VALUE MULTIPLIERCOST AVOIDANCE VALUE RECOVERY

0% 10%

95% 30%

0% 30%

0% 30%

Biz As Usual / Circular

From the Hyperscale Perspective

TCO REDUCTION

… if it happens in 10 average hyperscale facilities

TCO gain over 10 yr

~$6.76 billion

TCO gain over 10 yr

~$67.6 billion

ASSUMPTIONS• 2020 server base of 2,000,000• Refresh cycle: 3 years• Storage included (server-to-storage ratio of 4:1);

storage devices crushed• 30% compute growth p.a.• DeltaLake Server (1x CPU, 8x DIMM chips, 1x

SSD, av. Power 400W)• Moore’s law: 12.8% CAGR for compute

efficiency over 10 year horizon• Electricity Price: 0.0678$ / kWh; 3% p.a.

escalation in energy prices• Facility costs also included

YEAR 2 YEAR 3 YEAR 4 YEAR 5

Business as usual

Circular

$77,659

$67,610

$71,874

$65,111

$75,527

$74,205

$72,511

$71,744

13.6zb

1.5T spend

Meanwhile, Markets Are Blocked

Mid-sized banks spend

less on technologythan megabanks

50%funding gap in ICT

$100B

Circular Unblocks With Disruptive TCO

$-

$.50

$1.0

$1.50

$2.0

$2.50

$3.0

$3.50

OEM Sesame

$ TC

O p

er y

ear

Mill

ions

T O T A L A N N U A L T C O

Server Depr

Power Cost(Servers)

Power Cost(Overhead)

-41%

$ 2,983,604 $ 1,748,556

Circular Unblocks With Disruptive TCOS E S A M E O E M

Cores per rack 1,152 800

Memory per rack 49,152 GB 30,720 GB

SSD storage per rack 384,000 GB 230,400 GB

Number of racks 30 43

Applied Discount on List Price 0% 60%

Capex per rack (after discounts) $ 317,664 $ 529,712

Lifetime 6 years 9 years

Electricity cost 0.0678 $ / kWh

PUE 1.15

34,560 34,400

Sesame OEM

Number of Total Cores

1,474,560 1,320,960

Sesame OEM

Total Memory (GB)

11,520,000 9,907,200

Sesame OEM

Total Storage (GB)

SSDHDD

$-

$.50

$1.0

$1.50

$2.0

$2.50

$3.0

$3.50

OEM Sesame

$ TC

O p

er y

ear

Mill

ions

T O T A L A N N U A L T C O

Server Depr

Power Cost(Servers)

Power Cost(Overhead)

-41%

$ 2,983,604 $ 1,748,556

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

Public Cloud OEM Sesame

$ TC

O p

er y

ear

Mill

ions

Server Depr

Power Cost (Servers)

Power Cost (Overhead)

Colo Rent

Facility Depr

Staff

Other

Egress

Compute Instances

And for Certain Workloads, Public Cloud Just Doesn’t Pencil OutTotal Annual Cost

On demand instances @ 10% utilization

25% discount off list

Location: US West

Facility

• Facility size: 1MW• DC construction cost: $5 million• DC lifetime: 15 years

Staff

• Cost per staff: $ 60,000• DC ops staff per MW: 1• HW ops staff: 1 per 200 racks

A S S U M P T I O N S

Turns Out, This Stuff Matters

POST-USE PHASE

2%PRE-USE

PHASE

76%OPERATIONAL

PHASE

22%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

What If We Could Enable a 2nd “Life”?BAU SCENARIO

Cum

ulat

ive

CO2e

Pre-useUse

OPERATIONAL

EMBODIED

68% of BAU use phase CO2

N E T C O 2 eS A V I N G S

24%of BAU total

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

What If We Could Enable a 2nd “Life”?CE SCENARIO

Cum

ulat

ive

CO2e Pre-use

Use

20%OPERATIONAL INCREASES

52%EMBODIED DECREASES

TCO Impact of the Same System... Also Better

Moore’s law = 13%Depreciation 60/30/10$/ kwh: .0752Busy/ average power ratio: 58%Busy watts/ server: 465 (270 avg)

-

5,000

10,000

15,000

20,000

BAU CE

System TCO

Repairs

Deprec

Power

-24%S A M E A S S U M P T I O N ST H R O U G H O U T :

So what does it take to deliver the circular IT hardware opportunity?

Orchestrating The New Global IT Hardware Market:

For ALL

Open source hardware and firmware to enable support

Global operations and logistics footprint –time to market is critical

Automation and machine learning to fuel both customization and efficiency at hyperscale

Market-making scale and diversity of

downstream channels

Design, engineering and product expertise, rigorous commitment

to quality

Orchestrating The New Global IT Hardware Market:

For ALL

Open source software stack to enable support

Global operations and logistics footprint –time to market is critical

Automation and machine learning to fuel both customization and efficiency at hyperscale

Market-making scale and diversity of

downstream channels

Design, engineering and product expertise, rigorous commitment

to quality

Services and Products

+a changed mindset and shared ethos

across the ecosystem

PROVEN HYPERSCALE TECHNOLOGY

CONSISTENT PRODUCTDEPENDABLE SUPPLY

BETTER-THAN-EVER TCO

• Best of the best, fully tested

• Post burn-in, stable phase

• 3-year warranty, 6-year optional

• Purpose-built configurations, flexible capacity

• Architecturally consistent nodes for multi-year rollout

• Ready supply, millions of nodes available per year

• Global spare parts for full lifecycle

• Save on deployment

• Optimize operations with high density, efficient power/cooling

• Simplified maintenance

• Value capture at end of life

by

R A C K S C A L E S O L U T I O N S B U I L T O N O P E N A R C H I T E C T U R E

Optimized for Your Workload. Ready to Deploy.

SESAME FOR OPEN SYSTEMS

Massive scale, cross-rack switching interconnects up to 20 racks; 750+ nodes in a single cluster, network domain

Prevalidated with Kubernetes software and infrastructure stacks

Linux-ready with scalable OpenBMC management

NO GUESSWORK. NO ASSEMBLY. JUST PLUG THEM IN.

SESAME FOR AI/ML

High bandwidth, low latency platform to optimize learning

Powerful application processing on large and small accelerated compute nodes

InfiniBand connectivity for top throughput

SESAME FOR CONVERGED

Simplicity of design with standardized converged nodes

Compute, storage and network capability scalable in lockstep as needed

Fully open configuration and manageability tools, qualified and optimized for Linux

Soz

Circularity is the opportunity and the imperative

Key Takeaways

ITRenew is ready to bring your business to the circular economy

Sesame is the answer to TCO-smashing, sustainable hyperscale for all

The time for 100% Circular is now!

Download at itrenew.com

DATA CENTER IMPACT REPORT:

THE FINANCIAL & SUSTAINABILITY CASE FOR CIRCULARITY