HPC Company Northern Data Buys Hydro66 Data Center for €25M
German HPC (High Performance Computing) infrastructure company Northern Data has acquired colocation provider Hydro66’s assets including their data center in Northern Sweden. The site currently consists of six data center halls on an area of 2.5 hectares and will now be further expanded by Northern Data following the acquisition. It is fully powered by green energy.
This site was completed by colocation data center operator Hydro66 only in 2019. The acquisition of the entire data center facility, including two operating companies and part of the team, will take place through the issuance of € 21 million in shares, subject to a full lock-up period of two years, and a cash component of € 4 million.
“The acquisition helps us to meet the current strong demand for HPC through our own infrastructure,” said Aroosh Thillainathan, CEO of Northern Data. “Hydro66 have built a unique facility and brand in Sweden which is ideal for AI and ML type HPC applications. We intend to expand the site during the year and utilize the low power costs and exceptional green credentials of the facility to meet customer demand and deliver enhanced profitability for the Northern Data Group in 2021 and beyond. David and his team have in depth experience which will prove invaluable for Northern Data as we expand to cement our position as the leaders in HPC globally.”
Location: The Arctic Circle
“Hydro66 have built a unique facility and brand in Sweden which is ideal for AI and ML type HPC applications,” said Aroosh Thillainathan, CEO of Northern Data.
“Incorporating Hydro66’s assets, expertise and expansion capability into Northern Data’s plans is a win for both parties,” said David Rowe, CEO of Hydro66. “Aroosh continues to create huge value for Northern Data shareholders through a series of astute moves and I believe this proposed transaction will benefit both parties in delivering shareholder value.”
Northern Data’s new site is located in the Northern Swedish city of Boden, which has an average annual temperature of 1.3 degrees Celsius due to its location around 80 kilometers south of the Arctic Circle. The location is therefore ideal for passive energy-saving cooling of the HPC hardware.
In addition to the “ideal” HPC temperature conditions, the region in Northern Sweden would be characterized by high connectivity and cheap regional surplus electricity from renewable energy sources. The electricity for Northern Data’s new data center site is 100 percent sourced from renewable energy, generated by hydropower plants in the region. The local hydropower plants have a capacity of about 4.5 gigawatts (GW), producing about 14 terawatt hours (TWh) per year, which is available to Northern Data “at the lowest electricity prices in the EU.”
PUE Value: 1.07
An PUE value (Power Usage Effectiveness) of 1.07 is being achieved for the facility. The PUE value puts the total energy consumption of a data center in relation to the energy consumption of the IT infrastructure. The closer the value is to 1.0, the more efficient the data center. With a value of 1.07, Northern Data’s future data center is among the worldwide leaders and is well below the industry average.
Hydro66’s data center site, which has won awards for its ultra-efficiency, would meet the highest requirements, with various ISO certifications being achieved. Northern Data will start allocating hardware instantly due to the high demand from its customers and will continue to massively expand the site immediately.