Scott Goodwin, senior project manager for DBK Connect, heads up the company’s data centre power procurement management team, and here gives his guide to procuring power for data centres

When looking for a plot of land or an existing building to modify or a site to build a new data centre, many things need to be considered. 

Traditionally, a developer decides on the land or existing building to be purchased, based upon a variety of company requirements such as land/building costs, or the proximity/location  to a major city.

However, a potential buyer should not overlook the power analysis. The power cost normally runs in to millions of pounds, but if the correct analysis is carried out at an early stage prior to purchase and all the procurement options are carefully scrutinized, the overall power cost can be significantly reduced.

DBK Connect provides a dedicated specialist service to manage the risks and bring added value to a project’s utility infrastructure requirements.

Our main activity is to provide a robust service on utility and physical infrastructure procurement and technical solutions, using the full benefits of market competition and the ever changing industry sector legislation, in order to procure a cohesive and value engineered delivery model.

In summary, we ensure that the optimum utility infrastructure scheme is procured for each project so that the project has efficient costs with a compliant programme and acceptable contract conditions.

What we and the client  do once a site is purchased
Once a site is purchased and secured,  I investigate the procurement options available to the client. It is imperative that competition should be encouraged in line with the open market and current legislation.
The four key issues are to :-
1. Realise the most effective costs.
2. Obtain a suitable programme.
3. Secure better contract conditions with surety.
4. Mitigate risk by procuring the majority of the works under traditional contract conditions.  
There are four procurement options available for that should always be considered for data centre power procurement.

Option 1
Incumbent Distribution Network Operator (DNO) – this is the provision of a statutory quotation from the incumbent DNO i.e. for a project in London EDF Energy, National Grid Transco and Anglian Water.
Key issues:
•   Incumbent has no legal obligation to meet programme dates.
•   Difficult to interrogate charges levied.
•   Incumbents may have a track record of poor performance.
•   Standard Connection Agreements with little in favour of client.

Option 2
Independent Connection Providers (ICP). A Point of Connection (POC) to the existing network is provided by the incumbent DNO. The ICP will design and install the extension to the existing network, and this will be adopted by the DNO upon completion. The DNO will be responsible for the ongoing operation and maintenance of the new network.
Benefits:
•   Reduced costs, with total transparency.
•   More suitable programme.
•   More traditional Contract Conditions with Surety provided.
Key issues
•   The design and installation of the works will need to be approved by the incumbent DNO prior to adoption and energisation.
•   The non-contestable works will still need to be completed by the incumbent DNO.

Option 3
Independent Distribution Network Operators (IDNO) – This option is where an IDNO designs, constructs and operates and maintains their own network. Again, a POC will need to be obtained from the incumbent DNO.
Benefits:
•   Reduced costs, with total transparency.
•   More suitable programme.
•   More traditional Contract Conditions with Surety provided.
•   IDNO will make a contribution to the capital costs.
•   IDNO can offer flexible financial business models.
•   IDNO will calculate more accurate loads resulting in optimum scheme and costs.
Key issues
•   The non-contestable works will still need to be completed by the incumbent DNO.

Option 4
Independent Connection Providers (ICP) & Independent Distribution Network Operator (IDNO) – This is the same principle as option 3, but the network will be constructed by an ICP and adopted by the IDNO as option 2. This provides the benefits of option 3, but competition can be introduced for the installation works. The new networks can be competitively bid and sold to IDNO’s to ensure the maximum financial contribution.            
Benefits:
•   Reduced costs, with total transparency.
•   More suitable programme.
•   More traditional Contract Conditions with Surety provided.
•   IDNO will make a contribution to the capital costs.
•   IDNO can offer flexible financial business models.
•   IDNO will calculate more accurate loads resulting in optimum scheme and costs.
Key issues
•   The design and installation of the works will need to be approved by the IDNO prior to adoption and energisation.
•   The non-contestable works will still need to be completed by the incumbent DNO.

Case sudy
On a 40MVA site DBK Connect managed the procurement and delivery of power via the introduction of competition.
The procurement and delivery of power supplies to the data centre was the key to the completion and handover of Data Halls to incoming tenants.
In this instance we decided to use an IDNO and not the DNO.
The existing electricity infrastructure in the area had little spare capacity. As a result, there were two options available for the provision of 40 MVA to the site.
Option 1 was for a new 132/11kV Primary sub-station located on the site, with direct 132kV supplies from local Grid.
Option 2 was for a 33/11kV primary located on the site, with 33kV supplies from the local Primary. The local Primary required re-inforcement (132kV) from the local Grid.
The Primary had spare capacity at 33kV, enabling a 20Mva interim supply to be realised.
The DNO advised that they could only provide Option 1 as the maximum size 33/11kV primary sub-station they could have provided had a capacity of 30MVA.
They also advised that the full 40MVA could not be made available until around 24-36 months from appointment. In addition, to provide an interim supply (20MVA), a temporary 33/11kV primary sub-station would be required on site and an additional 33kV supply from local grid substation.
The chosen IDNO advised that by providing option 2, the interim 20MVA supply could be provided within 10-11 months from appointment. The upgrade to 40MVA is dependent upon the completion of the DNO re-inforcement works, but could be expected 18-24 months from appointment.
The decision to use the IDNO providedthe optimum programme and the most cost effective solution.

• Tel: 020 3206 2315
  This e-mail address is being protected from spambots. You need JavaScript enabled to view it