Event Recap
RECAP | Roundtable [EMEA]: Risk Assessments
Widespread outages of recent years have proven how interconnected digital infrastructure is throughout the world. It has also shown the importance of data centers to everyday lives. A risk assessment in 2023 is more wide-spread and comprehensive then in 2020 but are there still considerations and risks that are perhaps missing. In this roundtable, Amber Villegas - Williamson, Senior Consultant for Uptime Institute, assisted attendees in discussing how risk assessments are evolving and what are the disruptive elements changing the risk landscape.
The roundtable kicked off with Amber and the attendees discussing how often sites are conducting risk assessments currently and whilst most attendees agreed that data centers typically have a risk assessment done at the initial concept design stage and often before the land is purchased for build-out. It was agreed that these risk assessments should be continuously performed to ensure the data center risk landscape is known, as risks will not only develop, but change over time.
Attendees discussed that risk assessments are currently being conducted to highlight potential risks in supply chains, including as an example during the pandemic but also now for spare parts, and, when the political landscape shifts such as is the case of the ongoing war in Ukraine. Philip Scheepers a Consultant for Uptime Institute based in South Africa who had also joined the call, raised an interesting point, that due to local load shedding (whereby the demand for electricity exceeds the available supply, planned supply interruptions are carried out) has led to high demand in region for fuel to support onsite power generation. An attendee commented that they have various contracts with fuel suppliers based in different regions of their country to mitigate against this risk in the event of a fuel shortage, and whilst it was agreed that in certain areas this may currently be sufficient in South Africa many data centers who had similar policies are now finding that contracts are worth only the paper they are written on, especially when other sites are vying for the same supplier. An attendee who joined from India commented that new builds in their country are being actively encouraged by the government to utilise utility gas as the onsite fuel resource as it is now widely available, easy to implement and cost effective. Whilst the BRICS group (Brazil, Russia, India, China, and South Africa) has allowed India to increase it’s import of gas significantly data centers must also consider the uncertainty of the security of this current trade agreement and not become wholly reliant on utility gas connections to deliver fuel for on-site power generation.
The discussion pivoted to how continuous discussions on climate change, energy efficiency and eco-legislation will impact how data centers not only look at energy efficiency but how it will impact the way in which risk is classified and understood. Whilst most data centers measure their energy usage it was commented that data centers are being pushed to be even more efficient, reduce operating costs and overall carbon consumption. It was succinctly explained that whilst metrics exist to quantify power consumption there is currently no way to identify how energy efficiency saving may impact operational risks through reducing and/or removing redundancy in systems, processes, and design margins. Perhaps a new way of measuring is needed?
Key takeaways:
The roundtable kicked off with Amber and the attendees discussing how often sites are conducting risk assessments currently and whilst most attendees agreed that data centers typically have a risk assessment done at the initial concept design stage and often before the land is purchased for build-out. It was agreed that these risk assessments should be continuously performed to ensure the data center risk landscape is known, as risks will not only develop, but change over time.
Attendees discussed that risk assessments are currently being conducted to highlight potential risks in supply chains, including as an example during the pandemic but also now for spare parts, and, when the political landscape shifts such as is the case of the ongoing war in Ukraine. Philip Scheepers a Consultant for Uptime Institute based in South Africa who had also joined the call, raised an interesting point, that due to local load shedding (whereby the demand for electricity exceeds the available supply, planned supply interruptions are carried out) has led to high demand in region for fuel to support onsite power generation. An attendee commented that they have various contracts with fuel suppliers based in different regions of their country to mitigate against this risk in the event of a fuel shortage, and whilst it was agreed that in certain areas this may currently be sufficient in South Africa many data centers who had similar policies are now finding that contracts are worth only the paper they are written on, especially when other sites are vying for the same supplier. An attendee who joined from India commented that new builds in their country are being actively encouraged by the government to utilise utility gas as the onsite fuel resource as it is now widely available, easy to implement and cost effective. Whilst the BRICS group (Brazil, Russia, India, China, and South Africa) has allowed India to increase it’s import of gas significantly data centers must also consider the uncertainty of the security of this current trade agreement and not become wholly reliant on utility gas connections to deliver fuel for on-site power generation.
The discussion pivoted to how continuous discussions on climate change, energy efficiency and eco-legislation will impact how data centers not only look at energy efficiency but how it will impact the way in which risk is classified and understood. Whilst most data centers measure their energy usage it was commented that data centers are being pushed to be even more efficient, reduce operating costs and overall carbon consumption. It was succinctly explained that whilst metrics exist to quantify power consumption there is currently no way to identify how energy efficiency saving may impact operational risks through reducing and/or removing redundancy in systems, processes, and design margins. Perhaps a new way of measuring is needed?
Key takeaways:
- Risks are continuously evolving and to be able to understand the full risk landscape for a site the assessment of risk needs constant view and consistent approach.
- Identifying “trigger-points” to prompt an update and/or revision to a site risk assessment should be known to the complete organization.
- It is fine to adopt a ‘wait and see’ approach to changes in both local and global politics, and leveraging any issues faced in other areas/regions can help identify possible risks and “trigger-points” at which risk assessments and mitigation plans should be implemented.
- Spare parts and fuel supply issues are now occurring in several countries, so learning and sharing lessons to with peers in the industry will help highlight any key early warning signs to implement mitigation plans.
- Risk, and how we not only classify but also measure and quantify risk is evolving. Industry wide collaboration will greatly improve how as an industry data centers avoid unplanned situations.
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