Varkaus Päivärinne Data Center Site, Päivärinne Data Center Site facts

Electrical power to the site could be The size of the site area is reduntant up to 200 MW direct currently 18,5 ha but the building connected from reliable Finnish right is up to 129.500 m2. National Grid (Fingrid). The area has industrial zoning Time to service is really fast since completed. No need for long time Fingrid’s 110 kV existing substation is zoning process. next to the site in 400m distance. Excess heat from DC cooling No need for any long term permits A view to the existing substation next to site system can be used in existing since high voltage overhead line path district heating network which is is short and already in connection to located nearby. the site. The area is suitable also for air Green Energy available from existing cooling. Ambient air >25 °C <104 and increasing wind power, hydro h/year (average 2012 – 2018). power and biomass CHP in Finland. LOCATION AND LOGISTICS Data Center site location in Green Tech Valley of Finland

Varkaus Päivärinne DC site is located in the city of Varkaus in the Green Tech Valley of Finland Site is ideal for DC operations in terms of location, power, cooling, fast track implementation and local support Only 1h from to Varkaus

4 lane motorway Main roads Railroad Airport Railway station Port/Harbour

Varkaus Päivärinne DC site

Distances from DC site: Railroad: 2,5 km To highway: 3 km Helsinki: 319 km Helsinki Intl. airport: 315 km 90 km Varkaus Päivärinne DC Kuopio airport has regular site connections to Helsinki

It is possible to transport big equipment/parts from sea by ships through Channel to Varkaus and to DC sites Varkaus Päivärinne Data Center Site location

to Kuopio

to

to Pieksämäki to and Helsinki Industrial area for Data Center use . Zoning is ready for industrial use like Data Centers . Landscape is easy to build . Feeding substation right next to the site . Area 18,5 ha and building right 129.500 m2 . Ground survey and traffic survey has been done for the area. No easements on site Päivärinne DC site location

. Hospital, Rescue departments and Police station locate near the site

Päivärinne DC site Location in relation to the lake

Min. 200 m

DC +85.00

 No flooding possibility 8m

+77.00 - >3

The water level on the lake Huruslahti (connected to the Great Saimaa Lake) has variated between +74.5 – 77.80 between years 1995 – 2016. Current landscape elevations

Landscape data by National Land Survey of Finland 11/2015 Utility connections available at the DC site

Potable and sewer water connections

The area has many alternatives to connect easily to existing utility system Peaceful seismological environment in Finland

. Finland is located in a very peaceful area concerning earthquakes. +55.500 . There have been some minor earthquakes also in Varkaus area, but the magnitude of those events has been small.

. Minor earthquakes in Finland are part of interplate earthquake series on Eurasian tectonic plate.

. Due to the fact that there have been only minor earthquakes, they are not required to be taken in to account in any local building regulations or codes. The largest earthquake in the region was in 2004: magnitude 1.2.

Source: University of Helsinki, Institute of Seismology Peaceful seismological environment in Finland

List of all recorded earthquakes in the 50 km radius from the Varkaus Päivärinne DC site since 2000. +55.500

Magnitudes are local magnitudes in ML scale (the Richter scale) based on readings from Finnish BBZ/SPZ stations

Source: University of Helsinki, Institute of Seismology POWER SUPPLY Fingrid Oyj’s national grid (110 and 400 kV)

Fingrid’s Huutokoski 400/110 kV substation

Päivärinne DC site Fingrid’s Huutokoski 400/110 kV substation 18 km from Varkaus, is one of the key substation’s in Finland with 180 MW back-up power generators

Source Fingrid Location of the nearest 110 kV substation and Päivärinne DC

Fingrid Varkaus 110 kV substation Power ramp up to the DC site; phase 1

Available load to site: . Redundant 10 MW

Existing Fingrid’s 110 Infrastructure upgrade kV substation. Savonvoima needed: has own feed . 2 x 10 kV supply lines from on substation local Savonvoima10 kV grid

. 10 kV switchgear PHASE 1 10 kV power lines from Time needed 6 months local Savonvoima Cost estimate 0,4 MEUR grid Power ramp up to the DC site; phase 2

Available load to site: . Redundant 20 MW

Existing Fingrid’s 110 PHASE 2 Infrastructure upgrade needed: kV substation. 110 kV power Savonvoima line from . 110 kV line from Fingrid’s has own feed Fingrid’s substation (400m) on substation substation . 110 / 20 kV transformer . 20 kV switchgear . Phase 1 is redundant feed PHASE 1 10 kV power lines from local Time needed 12 – 24 months Savonvoima Cost estimate 1,5 MEUR grid

It is possible to connect direct to National Grid (Fingrid) => no other transmission costs! Power ramp up to the DC site; phase 3

Available load to site: . Redundant 40 - 200 MW PHASE 2 PHASE 3

Existing 110 kV power New 110 kV Infrastructure upgrade needed: Fingrid’s 110 line from power line kV substation. Fingrid’s from Fingrid’s . New 110 kV power line from Savonvoima substation substation has own feed Fingrid’s substation (400 m) on substation . 110 kV switchgear . 110 / 20 kV transformers . 20 kV switchgears PHASE 1 . Phase 2 is redundant feed 10 kV power lines from local Savonvoima Time needed 24 months grid Cost estimate 2 – 3 MEUR

It is possible to connect direct to National Grid (Fingrid) => no other transmission costs! Green wind energy available for power source

Generation and capacity of wind power

Wind power capacity has increased about 500 MW/year in Finland. Current (April/2018) wind power capacity has exceeded 2300 MW. The Finnish wind power association together with Eatha Wind Oy has maintained database of Finnish wind power projects; chart and map. CONNECTIVITY General views on the available fiber infrastructure and connectivity

. Varkaus DC Päivärinne is in well positioned site from network connectivity perspective and building the infrastructure should be relatively easy . Varkaus DC area has 3 diverse routes to the area: . two by Fingrid OPGW, Dark fiber possibility . one by Telia terrestrial cable . one via VT5 . DNA and Elisa fiber infrastructures are not that close so additional investments would be required to get their networks connected to Päivärinne DC . There are no network core PoPs close to Varkaus DC so the operators would need to invest to DWDM and MPLS equipment at the site . During discussions with the operators they indicated their willingness to invest in the fiber and equipment infra to the planned DC area Fiber routes to Varkaus Päivärinne Data Center Site Local fiber routes to Varkaus Päivärinne Data Center Site Local fiber routes to Varkaus Päivärinne Data Center Site Route description to Stockholm, Helsinki and Frankfurt

Route 1:  Varkaus DC – Mikkeli (OPGW 85km) – Kouvola along railroad 5 (115km) – Helsinki along the VT6 and 170 (150km) – Rostock via C-Lion1 (1173km) – Frankfurt (865km)  ~2300km Route 2:  Varkaus DC – Varkaus new local tail 5km – Pieksämäki along road 23 – Tampere(242km) – Turku along railway (170km) – Stockholm SK1 along the road (272km)  ~690km Route 3:  Varkaus DC – Kuopio(OPGW 66km) – Pieksämäki (85km) – Mikkeli (72km) – Kouvola (106 km) – Lahti (62km) – Kerava (103km) – Helsinki (25km) Next to railroad – Tallinn – Riga – Vilnius – Warsaw – Frankfurt (2400km)  ~2840 km Fiber routes from Varkaus to

Route 1:  Varkaus DC – Mikkeli – OPGW – Vainikkala VT390  215 km Route 2:  Varkaus DC – Joensuu (VT23) – Parikkala (along the railway) – Imatrankoski (along the railway)  330 km Route 3:  Varkaus DC – Mikkeli (VT5) – Kouvola – Kotka – Kingisepp  400 km

Source: Cinia Oy Example of Round Trip Delay

Estimated latency A-end B-end Distance RTD

Varkaus DC Helsinki PoP ~350 km ~3,5 ms

Varkaus DC Finnish Russian border ~215 km ~2,15 ms

Varkaus DC *Hamburg PoP ~1780 km ~17,8 ms

Varkaus DC *Frankfurt PoP ~2350 km ~23,5 ms

Varkaus DC ST Petersburg ~370 km ~3,7 ms

Varkaus DC Moscow ~1390 km ~13,9 ms

* RTD calculated using Cinia SeaLion1 Source: Cinia Oy COOLING AND SECONDARY HEAT REUSE Conditions support effective cooling

. Ambient conditions suitable for free cooling . Ambient air >25 °C <104 h/year (average 2012 – 2018) . Potential cooling methods: lake water cooling, direct air cooling with or without adiabatic cooling, cooling towers

Ambient air: dry temperature and duration of dry and wet bulb temperatures Raw water temperature and temperature stability, Air data: hourly averages, Varkaus/Kosulanniemi 2012-2018 by FMI Data: /Varkaus/Existing tunnel, daily averages 2017-2018

Environmental data source: © Finnish Meteorological Institute and Stora Enso, Varkaus Cooling by Lake Water

. High free cooling share for white space Cooling production by lake water and mechanical cooling temperature 21 °C and above White space temperatures 27 and 25 °C, Data: Stora Enso, Varkaus, Existing raw water tunnel, 2017-2018 . Lake water stays cool also in summer. Thus high free cooling energy share. . Above 90 % free cooling share also in exceptionally hot summer 2018

Lake water surface temperature and temperature duration. Data: Stora Enso/Varkaus/Existing tunnel, daily averages 2017-2018

100 % free cooling, white space temp 27 °C

Target white space temp 27 oC 25 oC 21 oC Primary water circ temp. 17 oC 15 oC 11 oC Free cooling, energy 92% 89% 81% Mech. cooling capacity 56% 66% 86%

Environmental data source: © Finnish Meteorological Institute and © Stora Enso, Varkaus >90 % free cooling possibility with lake water cooling

Free cooling with Lake Water Cooling

Cooling water

A= 10 m² discharge 3,5 m 3,5

3 m New pipeline • Existing raw water tunnel from Unnukka to Stora Enso pumping pool Existing has cooling capacity up to 700 MW tunnel • Cooling water supply utilizes 6 m surface level difference between Niskaselkä and Huruslahti • Existing tunnel and the pumping pools can be used as a cooling water supply • Even in exceptionally warm summer 2018 the free cooling share would have remained as high as 92 % Cooling Towers and Mechanical Cooling

Cooling production by cooling towers and mechanical cooling . Wet bulb temperature favors cooling towers White space temperatures 27 and 25 °C Ambient air data: average 2012-2018 . High free cooling share for white space temp. 21oC and above . Make-up water is available from lake nearby . Tower excess water led to storm water system without treatment or via oil-separation

Ambient air temperature and dry and wet bulb temperature durations, Varkaus/Kosulanniemi, 2012 - 2018

Target white space temp 27 oC 25 oC 21 oC Primary water circ temp. 17 oC 15 oC 11 oC Free cooling, energy 98% 95% 88% Mech. cooling capacity 33% 43% 63%

100 % free cooling, white space temp 27 °C

Ambient air data source © Finnish Meteorological Institute Cooling Towers and Mechanical Cooling, Power Consumption Direct Air Cooling

. Ambient conditions suitable for free cooling . Maximum ambient air temperature 31,4 °C . Ambient temperature >25 °C <104 h/a (average 2012 - 2018) . Longest continuous period 14 h, average peak duration 5,3 h . With adiabatic cooling (RH 80 %) max temp 25,6 °C

Temperature durations of ambient and spray cooled (RH 80%) air. Air data: hourly averages, Varkaus/Kosulanniemi 2012-2018 by FMI

Ambient air data source © Finnish Meteorological Institute Mechanical Cooling

. Mechanical cooling (heat pumps/compressors) is necessary . Covering summer temperature peaks . Backup . Raising heat temperature for energy re-use . Potential heat sinks for heat pumps/compressors . Building heating (energy re-use) . Ambient air . Lake water . Cooling tower circulation . Re-use heat temperature suitable for district heating . Dimensioning for summer peak demands or as full backup . Mechanical cooling energy production share is low even though capacity need can be quite high . Mechanical cooling EER from 3 up to >7 depending on heat sink . Potential for energy re-use up to 1,3 x DC power consumption Examples of Secondary Heat Re-use Arrangements

TO DH NETWORK

HEAT RECOVERY DC COOLING HEAT PUMPS TARGETS

FROM DH TO DH NETWORK NETWORK Heat recovery from lake water

cooling system HEAT RECOVERY DC COOLING AMBIENT HEAT PUMPS TARGETS AIR TO LAKE

FROM DH FREE COOLING NETWORK LAKE WATER

FROM Heat recovery from adiabatic cooling system LAKE

TO DH NETWORK

HEAT RECOVERY DC COOLING HEAT PUMPS TARGETS

FROM DH NETWORK Heat recovery from POT. WATER cooling tower system FROM FILTERING LAKE

MAKEUP BUFFER TO LAKE

FREE COOLING HEAT PUMPS COOLING TOWERS AIR/LAKE WATER

TO LAKE Environmental data

Ambient air data source © Finnish Meteorological Institute SITE UTILIZATION Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization Example utilization IMPLEMENTATION PLAN Implementation schedule

. Example schedule for Data Center investment in Finland Remarks for the Implementation Schedule

. Feasibility Study is completed before the investment decision and Basic Engineering should continue in streamline . Layout, cooling process, electrification and automation system are usually fixed in Basic Engineering phase . Permitting process should also start immediately after the Investment Decision . Building shell and roof construction and water construction works are easier and cheaper done in summer time . All equipment or materials that requires longer delivery time should be ordered first in order to avoid slips in start-up . All construction, installation and commissioning contractors should have proven record of successfull contracts preferably also to foreign customers and English speaking main personnel to taking care of the project Typical time period required for permitting

. Permitting process needs to be started immediately after the Investment Decision is made . Even though it is relatively fast to get a construction permit, for example environment permit can take up to a year depending on the project . Environmental Permit requires to get accepted before operation starts . Other Permits should be accepted before construction starts

. It is recommended: . that the general contractor is aware of the permits required in facility construction, installation and operations works . to take initiative in communication with the officials and to go through the key items with the key officials like AVI and TUKES . Using local knowledge regarding the permitting. Finnish engineering process are routinely handling permits in their projects WHY INVEST YOUR DATA CENTER IN FINLAND? Finland offers major benefits for Data Center investors and operators

Reliable and green Cost efficient to energy invest and operate Build your next DC in Finland

World class Safe society and connectivity cyber security Reliable energy production and distribution

Finland has One of the Most Reliable Electric Grids in the World!

Transmission reliability: 99,9999% in 2018 /1-8

Fingrid Transmission Reliability History Number and Reasons of Disturbances

[%]

Reliability Transmission

Source: Fingrid, 2018 Renewable electricity production

Electricity Production by Energy Sources CO2-emissions of Power Production 2017 (65.0 TWh)

Renewables 47 % (Year 2016: 45 %) Carbon dioxide free 80 % (Year 2016: 78 %)

Generation and capacity of wind power CO2-emissions are reduced to 1/3 from 2007 to 2017 Wind power capacity has increased about 500 MW/year in Finland

Source: Energiateollisuus (Energy Industry) 2017 Low energy price invites to Finland

Energy cost in Finland is about 50% Breakdown of Energy Cost LESS than in ? Cost item € / MWh – Nord Pool Spot, incl. Finland area price (16.1.2018) 31,51 – Consumption fee, average 3,35 – Use of grid + balance payment 1,31 – Electricity tax 7,03

0,132 € / kWh – Total 43 – 44 € / MWh

. The Nord Pool is the common Nordic and Baltic wholesale market . The price of electricity is determined hourly, based on the balance of demand and supply . Price differences and electricity price level are expected to be very stable and low due to decentralized energy production in Finland. 0,066 € / kWh The power production capacity will increase significantly within the next years (2019) when Olkiluoto 3 (a new 1600MW power plant) will start operations. Finland has low energy price

According EU Statistics from 2017, Finland has one of the cheapest electric cost in Europe for households

Source: EU Statistics 2017 Potential improvements to TCO in Finland

Top education but competitive Free cooling saves energy and costs employment costs . Finnish people enjoy top level . Cool climate and pure air including education for it´s students. PISA numerous clean lakes and rivers (Programme for International plus 1100 km coast line gives many Student Assessment) has qualified cost effective locations for cooling Finland many times as the best in Data Center servers. the world regarding the level of . Due to cool climate the need to education invest to mechanical cooling . Althought top education, the systems is lower and warm periods employment costs for Finnish are short in Finland => lower TCO engineers are lower than in other European countries in average.

Lower company tax structure Lower taxation for project key personnel . Company taxation in Finland is 20 % . It´s possible to get lower taxation for which is much lower than average in the project key management OECD or EU countries. personnel for two years. Unique possibility to sell Data Centers’ excess heat

Excess Heat = Product for Sale

. Finland has a district heating system in almost every town. This creates an excellent possibility to re-use excess heat from Data Centers . Yandex – Russian search engine, has built Data Center in Mäntsälä, Southern Finland. Yandex sells its excess heat to local utility Nivos. Nivos primes excess heat with help of heat pumps suitable for the district heating network for Mäntsälä’s consumers. . This is an excellent showcase of the ”win win” trade for the excess heat use. Nivos could reduce their CO -emissions by . In addition, with the use of DCs excess 2 40% by re-using excess heat from Yandex Data heat as an energy source, Nivos can Center. lower their carbon footprint significantly. Finland is a gateway between East and West

. State of the art domestic fiber network is well connected to global networks . Hub of global data flows linking Europe, Russia and Asia . C-Lion1, The new high capacity, super fast submarine cable route from Finland to Central Europe, is now operational. . C-Lion1 has a record breaking capacity of 18 Tbit/s per fiber pair, total capacity of 144 Tbit/s. . Measured RTD between Helsinki- Frankfurt is 19,7 ms

Source: Cinia Group Oy Future connectivity plans

. The new submarine fiber optic routes from Europe to Asia

(ARCTIC CONNECT and ARCTIC FIBRE) will lower Helsinki latency between Europe and Asia about 90 -100ms compared to traditional route (Atlantic-Mediterranean- Suez-Red Sea-Indian Ocean-South Sea) . These projects are waiting for the implementation decision.

Source: Datacenter Dynamics

Source: LaserFocusWorld Safe geological location and nature

. Finland is geologically very safe because it lies on a very old and stable bedrock . Finnish climate is generally mild with no hurricane class storms . Baltic Sea floods very seldom and its all time record of sea level rise have been only 1.9 m in 2005. Areas that face risk of flooding are predictable. . Building Regulations demands to build a min. of 3 m above the sea level

Source: Institute of Seismology, University of Helsinki Stable society honours privacy

. In addition to Finland being an ideal location for Data Centers, it is also a safe place to save and keep information . The Finnish information privacy legislation is quite different from other European countries o Unlike most other European countries and including other Nordic countries, Finland adheres strongly to its policies on the right of privacy of individuals and corporations and enforces it´s own regulation without exception.

. In Finland privacy of information is a basic right that is inviolable and sacred o The same laws on data sovereignty applies to all forms of (stored) information and communication (digital or not) o In Finland there is a strong legal protection over any surveillance of information and a dedicated authority that has the power to ensure compliance o Officials may not survey information unless their work requires it.

. The favorable legislation to store and handle information has led many datacenter operators to establish business in Finland.

Source: Institute of Seismology, University of Helsinki Finland qualified no.1 in Fragile State Index

“The Fragile States Index is an annual ranking of 178 nations based on their levels of stability and the pressures they face. The Index is based on The Fund for Peace’s proprietary Conflict Assessment Software Tool (CAST) analytical platform. Based on comprehensive social science methodology, data from three primary sources is triangulated and subjected to critical review to obtain final scores for the Fragile States Index”.

Global Innovation index states that with innovation Finland is in 5th place 2016. Global Innovation

Source: The Fund for Peace, The Fragile State Index 2017 Data Center Risk Index 2016 qualified Finland no. 4

Risk Index listed 20 best qualified European countries’ qualification in the countries with least risk. Risk Index.

Cushman & Wakefield Data Center Risk Index 2016 Report highlights the most appropriate risks affecting data centre operations in today’s current climate. It has been designed primarily to support data centre due diligence and senior decision making when considering global investment and deployment activities.

Source: Cushman & Wakefield: Data Center Risk Index Report 2016 Contact Information

. Jouko Laitinen Managing Director, Warkaus Green Tech Valley Development Navitas Busíness Services Oy +358 (0)40 720 2401 [email protected]

. Arto Lehtonen Technical Director, City of Varkaus +358 (0)40 512 8500 [email protected]

. Reijo Parkkinen Business Area Manager, Data Centers, CTS Engtec Oy +358(0) 400 682 272 [email protected] , www.ctse.fi