[virtualisation was supposed to reduce energy-intensity but the opposite has
happened; while per capita energy (oil in particualr) continues to rise, the
Internet has become a major new consumer. Mark J.]

FT.com: 'Internet hotels' threaten to sap London's power
By Matthew Jones
Published: July 30 2000 21:06GMT | Last Updated: July 30 2000 22:20GMT



London's electricity network is to be put under pressure by plans to build
at least 10 huge "internet hotels" that will boost power demand in London by
around a fifth .

Internet hotels, sometimes known as "telco hotels", house file servers and
other essential information technology hardware for web-based businesses.
The trend for increasingly large centres is driven by rising internet use
and companies' needs to improve the reliability of their sites.

The vast data centres, each expected to cover an area of up to 50,000 square
metres, will require enough electricity to power two cities the size of
Bristol. Much of the energy will be used to power the water coolers needed
to avoid overheating of the servers.

Silicon Valley in California, the world's greatest concentration of new
economy businesses, is already struggling to cope with the impact of the
internet hotels springing up around San Jose. Last month Pacific Gas and
Electric Corp, the region's largest utility, was forced to cut power at
short notice to 97,000 customers to avoid overloading the network.

Up to now London Electricity, the capital's power distribution company, has
been able to cope with the increase in demand. But industry experts warn
that private power plants may have to be built to accommodate the scale and
speed of internet hotel construction in the next four years.

Ian Bitterlin, a director of ICW Power, an independent power plant provider,
said he expected turnover at his company to more than double in the next
year. But he warned that the decline in old economy businesses might mean
power providers will not be able to keep up with demand.

"We are finding it very difficult to get enough quality staff because no-one
wants to go into traditional engineering at the moment. The lead times for
the components needed to make our plants are also becoming longer and longer
because everyone is trying to source them," he said.

London Electricity said it was aware of the problem and was confident it
could avoid the power cuts that had occured in the US.

"London is experiencing an unprecedented boom in power demand but we are on
top of it. We are in close contact with all of the data centre builders and
with the National Grid," an official said.

Companies building internet hotels include Level 3, Global Crossing, Colt
Telecom and Telehouse. More than 200 such centres are expected to be built
across Europe in the next four years.



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