gsa climate risk study for telecom and data centre

7/24/2019 GSA Climate Risk Study for Telecom and Data Centre

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1 Climate Risks Study for Telecommunications and Data Center Services

Climate Risks Study for Telecommunications

and Data Center Services

REPORT PREPARED FOR THE GENERAL SERVICES ADMINISTRATIO

Prepared by:

RIVERSIDE TECHNOLOGY, INC. 2950 EAST HARMONY ROAD, SUITE 390 FORT COLLINS, CO 80528

TEL. (970) 484-7573 FAX (970) 484-7593 www.riverside.com


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Climate Risks Study for Telecommunication

and Data Center Service

REPORT PREPARED FOR THE GENERAL SERVICES ADMINISTRAT

By Riverside Technology, inc. and Acclima

Lead Authors

Peter Adams

Acclimatise

Jennifer Steeves

Acclimatise

Contributing Authors

Brian Ashe

Riverside Technology, inc.

John Firth

Acclimatise

Ben Rabb, PhD

Acclimatise

Copyright 2014 Riverside Technology, inc.


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TABLE OF CONTENTS

Execut ive Summary .................................................................................................................................... 5

1. Introduction ............................................................................................................................................ 7

Telecommunications, data centers, and climate change ......................................................................... 7

Report objectives ...................................................................................................................................... 8

Overall approach ...................................................................................................................................... 8

2. Climate Risk in Telecommunication and Data Center Supply Chains.............................................. 8

Supply chain maps ................................................................................................................................... 8

3. Literature Scan ..................................................................................................................................... 11

Methodology ........................................................................................................................................... 11

Climate impacts ...................................................................................................................................... 12

Discussion .............................................................................................................................................. 17

Selected case studies ............................................................................................................................. 27

Gap analysis ........................................................................................................................................... 29

4. Summary and Recommendations ...................................................................................................... 31

Key risks and vulnerabilities ................................................................................................................... 31

Key opportunities .................................................................................................................................... 31

Recommended actions ........................................................................................................................... 32

5.Annotated Bibliography

6. References

7.Annex: Mapping supply chains with input /output tables


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LIST OF TABLES AND FIGURES

Figure 1 - Supply chain climate risk: Thailand floods 2011 (prepared by Acclimatise 2012) ....................... 9

Figure 2 - Supply chain map for the telecommunications sector, demonstrating the chain of goods,

services, and context that support and influence a company ..................................................................... 10

Figure 3 - Supply chain map of the data center services sector, demonstrating the chain of goods,

services, and context that support and influence a company ..................................................................... 10

Figure 4 - The low, medium, and high potential for different climate variables and impacts to have a

negative impact on ICT infrastructure, including data centers (Engineering the future, 2011) ................... 16

Figure 5 Effects of adaption on the critical threshold or coping range of systems and assets to withstand

impacts in a changing climate (Willows and Connell, 2003) ....................................................................... 33

Figure 6 - Top ten industry and commodity inputs (millions of USD, adjusted for inflation to 2014 values)

to the US telecommunications sector (combined NAICS codes 517110, 517210, 517A00) (BEA, 2007) . 46

Figure 7 - Top ten industry and commodity inputs (millions of USD, adjusted for inflation to 2014 values)

to the US data center services sector (BEA, 2007) .................................................................................... 47

Table 1 - Climate impacts associated with the telecommunications sector ................................................ 13

Table 2 - Direct and indirect climate impacts associated with data centers (adapted from Acclimatise,

2008). .......................................................................................................................................................... 15

Table 3 - Past examples of impacts of weather events on data centers in the US and UK ....................... 16

Table 4 Adaptation actions focused on physical sites, assets, and processes from the literature .......... 22


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Executive Summary

Telecommunications and data centers are keyutilities sectors that facilitate the functioning andconnectivity of the United States economy.Disruptions in the ability to communicate or

access information severely inhibit governments,companies, and citizens, and in periods ofdisaster or extreme events, this inability tocommunicate puts national and human securityand business value at risk. Climate variabilityand change may threaten the infrastructuralintegrity and productivity of these critical sectors,increasing the number and severity ofdisruptions. Extreme or unusual weather canlead to cascading impacts felt across sectorsand borders. However, despite the importanceof these sectors, the climate risk they face ispoorly understood. Even less understood are

climate risks to the supply chains both sectorsrely upon. This report presents an initial steptoward understanding how climate change maydisrupt these sectors, how resilience can befostered, and recommends next steps.

Climate risk is business risk . The assets,equipment, and operating procedures of thesesectors were designed to function within specificclimate and environmental conditions. Climatechange (which can include both incrementalchanges as well as extreme events) can impactthe operating parameters and enterprise supply

chains, causing impacts to telecoms and datacenter companies and their customers. Impactsmay result in changes to functionality, quality ofservice, return on investment, businesscontinuity, and cost, in addition to cascadingimpacts on the diverse customers that rely uponthem. Value protection strategies are required toaddress these risks.

Climate change poses both dramatic andsubtle challenges. Extreme weather events,like Hurricane Sandy in 2012 and the Thai floodsin 2011, dramatically show the potentialeconomic cost of climate change in the near

term. However, cumulative or gradual climateimpacts are less likely to be studied due tofailure to spot the signals if operatingperformance gradually deteriorates, uncertaintyof the timing and magnitude of impacts, theabsence of stakeholder consensus in the wakeof an extreme event, and the short-termdecision-making time frames of manybusinesses. These impacts can lead to

increasing costs and reduce the expectedlifespan of assets and infrastructure. There isgreat need for businesses to understand,assess, and prioritize different kinds of climate

risks.

Global supply chains present a range ofglobal climate risks. The supply chains thatprovide goods and services in support of boththese sectors face a wide range of potentialimpacts from climate change. However, thiscomplex network means that climate impacts toone part of the supply chain in one region of theworld can have consequences for other parts ofthe supply chain in other regions of the world. Asingle climate event can have compound effects,with a range of direct and indirect impacts

across sectors and in many countries. However,the literature scan contained in this reportdemonstrates that little attention is currently paidto the range of climate risks in the supply chainssupporting these sectors. This report presentssupply chain maps for the telecommunicationsand data center sectors as a first step to assistin understanding how and where climateimpacts may present material risks and newopportunities. Further research to address thisgap will increase not only the climate resilienceof these sectors, but also the resilience of theirdiverse customers reliant on information

services for their functionality, capacity,operations, and security.

Infrastructure risks are better understoodthan supply chain risks. While climate risks tosuch vital supply chain inputs as electricityappear significant, the focus in the small butgrowing literature on telecommunications anddata center climate risks focuses oninfrastructure to the near exclusion of enterprisesupply chains. This gap needs to be addressedto determine the relative significance of climaterisks to the network of inputs, parts, andservices that support information and

communications technology (ICT) sectors.

A trend toward sharing and consol idatinginfrastructure reduces redundancy andcontributes to climate risk. Recent legislationallows companies to share telecommunicationsand data center infrastructure but this, alongwith government plans to consolidate data


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centers, reduces redundancy across the networkand generates single points of failure.

Some solutions exist, but more work needsto be done. This report highlights a number ofsuggested adaptation options from around theworld, including some case studies of earlyimplementation actions by telecommunicationscompanies to build resilience. However, manyadaptation actions remain untested or poorlydocumented. It is critical to explore adaptationsolutions, first by framing climate risks in thelanguage of business and then collaboratingwith key experts representing the engineering,technological, and operational aspects of bothsectors to discuss climate impacts in the shortand far terms.

This report leads to a number of keyrecommendations:

Frame climate risks as business risksusing the language of business, not science,and contextualizing climate risk from theperspective of private sector companies,their customers, investors, and regulators.

Plan for both a changing climate baselineand for climate extremes. Successfullyaddressing climate risk requires carefulattention to subtle impacts (e.g., thecumulative impact of increasing sequencesof warmer than average days on wired

telecommunications) as well as to theeffects of extreme storms.

Build awareness of climate risks beforedisasters strike. Working with stakeholdersto build consensus and collect theinformation each offers is to effectively buildresilience.

Conduct direct consultations with theprivate sectorto understand their needs,strengths, and weaknesses, as thesestakeholders know the business, sites, and

technologies best and can help buildunderstanding of what would happen underlikely climate scenarios.

Thoroughly assess climate risk of bothtelecoms and data center sectors,informed by consultations with experts andstakeholders. This will allow for theprioritization of risks to both sectorsaccording to their relative consequence andlikelihood.

Require federal service providers todemonstrate climateresiliencein allprocurement processes, with suppliersrequired to undertake a climate riskassessment and demonstrate how theirproducts and services will continue to meetrequired contractual and serviceabilityperformance standards.

Elucidate, test, and document adaptationoptionsas value protection strategiesinboth sectors, as many of these strategies

and fixes remain prescriptive, undetailed,and/or untested.

Assess operating headrooms for keyassets in both sectorsto understand thefunctional thresholds for critical assets in achanging climate, which will assist inidentifying and prioritizing risks, planningoperational maintenance, and informingfuture capital expenditures.

Assess both sectors within the context oftheir asset lifetimes, with climate risk

assessments scaled to the life cycles ofassets and equipment. Though lifetimes areshort, assets must be robust during theiruseful lives.

Include telecoms and data centers in thefourth National Climate Assessment,alongside other key sectors alreadyrepresented.

Provide guidance on SEC material riskdisclosure.


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1. Introduction

Riverside Technology, inc. and Acclimatise werecommissioned by the GSA to study climate risksto the telecommunications and data center

services sectors.The US has the largest telecommunicationsmarket in the world, and it is projected toexperience rapid domestic growth of around 3.7percent each year, reaching $721 billion by 2015(Verizon, 2011). As defined by the North

American Industry Classification System(NAICS), the primary purpose of organizations inthe telecommunications sector is the operationof and/or provision of access to facilities for thetransmission of voice, data, text, sound, andvideo. The sector includes establishments thatprovide telecommunications and related

services, namely telephony, including Voice overInternet Protocol (VoIP); cable and satellitetelevision distribution services; Internet access;and telecommunications reselling services.

There are four industry sub-sectors:

Wired

Wireless

Satellite

Telecommunications resellers

The first three are comprised of transmissionfacilities and infrastructure operators that own

and/or lease assets in order to providetelecommunications services. The fourthconsists of providers of support activities andtelecommunications reselling services. It alsoincludes providers of many of the same servicesprovided by the first three groups that are nottelecommunications carriers (US Census, 2014).Telecommunications services are essential tothe effective operation of the global economy,benefiting every other industry. In anincreasingly digital world, they also have vitalsocial functions to perform. They are touted ashelping to address greenhouse gas emissionsand other sustainability issues by offering lowimpact alternatives to travel. Telecoms alsoprovide critical tools for managing emergencyresponses during periods of disaster or extremeweather.

According to the NAICS, the data processingand hosting service sector provides specializedhosting activities, such as web hosting,streaming services, application hosting,application service provisioning, and time-

sharing of mainframe facilities to clients. Dataprocessing establishments provide completeprocessing and specialized reports from datasupplied by clients or provide automated data

processing and data entry services (US Census,2014). Whether hosting or processing, datacenters increasingly represent key nodes thatare vital for maintaining the successful operationof todays global communications infrastructure.

At the same time, uptime expectations fromcustomers continue to grow (Ricardo-AEA,2014). A unique selling point of data centers isthat customers who utilize them to store data arepromised safety from data loss in times ofextreme weather. The Cloud is actively beingpromoted as a tool to combat weather disruptionwhere it is suggested that with data stored

virtually in a secure, purpose-built data center,businesses can be confident that theirinformation is highly secure regardless of whatthe weather conditions are (Sourcing Focus,2014). Of course, this is only true if the datacenter has been designed to be climate resilientalong with all its essential supplies and services.

Addtionally, it also requires a trained andresilient workforce.

Telecommunications, data centers, andclimate change

Telecommunications and data centers are

technologically advanced sectors of the USeconomy. They provide significant value asindustries in their own right as well as servicesfacilitating the communications and operationsof the government and every data rich sector ofthe global economy reliant on advancedcommunications and digital technologies. TheUS telecommunications market is the largest inthe world, with over 290 million wirelesscustomers in the US, and continues toexperience rapid growth and technologicaldevelopment (Verizon, 2011). With the advent ofcloud computing and big data, data centers areincreasingly relied upon as backbones of theinformation economy(Ricardo-AEA, 2014).These realities increase US reliance ontelecommunications and data center sectors,making them, along with transportation, power,and water, critical components in the functioningof the US government and the global economy.

Due to their importance, disruptions totelecommunications and data center services


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companies produce ripple effects across theiruser base. Climate change (which can includeboth slow-onset, incremental changes as well asthe increasing intensity and/or frequency ofextreme events) can alter the baseline ofexpected conditions, causing impacts tocompanies in both sectors, their suppliers, andcustomers. The assets, equipment, andoperating procedures of these sectors weredesigned to function within specific climate andenvironmental conditions. Impacts may result inchanges to functionality, quality of service,return on investment, business continuity, andcost, in addition to cascading impacts to thediverse customers that rely upon them. Theconsequences of extreme weather events onthese sectors is already beginning to be noted(Svenson, 2012; The World Bank, 2012).

Report objectives

The US General Services Administration (GSA)supports the functions, administration, andprocurement of the Federal Government, and assuch needs to understand and mitigate risks tovital services. Despite their importance, climaterisks to the telecommunications and datacenters services sectors remain insufficiently

understood. The objective of this report is tobetter inform GSAs climate change adaptationplanning and risk management activities bycollecting, reviewing, and summarizingpublished information on climate risks in bothsectors.

This report, prepared in accordance with theClimate Change Adaptation Action Plan (GSA,2012), provides a foundational understanding ofclimate risks of both sectors, identifies gaps inexisting knowledge, and makesrecommendations for next steps.

Overall approach

A number of discrete tasks were undertaken inpreparation for this report:

Supply chain mapping

Literature scan and gap analysis

Annotated bibliography Recommendations

The methodologies and results for these arepresented in the sections below. The concludingsection with Recommendations synthesizes theresults of the previous sections and suggestsnext steps.

2. Climate Risk in Telecommunication and Data Center Supply Chains

As facilitators and members of the global

economy, the telecommunications and datacenters sectors rely on networks of internationalsupply chains. These supply chains offercustomers sophisticated services as the result ofcoordination of inputs and services by suppliers.However, this complex network means thatclimate impacts to one part of the supply chainin one part of the world can have consequencesfor other parts of the supply chain in other partsof the world. A single climate event can havecompound effects, with a range of direct andindirect impacts, across sectors.This wasnotably demonstrated in the 2011 Thai floods,as illustrated in Figure 1, when severe floodingdisrupted electronics manufacturing in Thailand,leading to expensive delays and disruptions tocompanies around the world.

Understanding the range of climate risks facingthe telecommunications and data centerssectors requires an understanding of the

linkages between these and other sectors. Inthis section we present two complementary

approaches for understanding the structure andinterdependencies of these sectors, and discusshow to support identifying and assessing climaterisk.

Supply chain maps

Supply chain maps visually depict the flow ofgoods and services that companies rely upon tooperate. They provide a useful framework toassess climate risk in the telecommunicationsand data center sectors. Risks in one part of theworld can affect other parts, just as impacts toone sector are rarely limited to that sector. Both

telecommunications and data centers mayexperience climate impacts indirectly when thesuppliers of key inputs and services on whichthey rely, such as electricity and partsmanufacturing, experience climate impacts.


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They may also be affected by changes inconsumer needs and expectations in responseto changing conditions. A further connection toresilience comes out of the importance of these

sectors coordinating responses in periods ofdisaster. Strengthening the resilience of thesesectors will improve the resilience of all the othersectors that rely upon them.

In this section, supply chain maps (seen inFigures 2and3) depict the essentialconstituents and relationships in both sectors.The objectives for this approach were to:

1. Include all the major elements of a typicalsupply chain for both sectors;

2. Present a generic sector supply chain thatdiverse companies in the sector can see the

essential structure of their business within it;3. Show and differentiate where and how

climate impacts may present material risksor new opportunities across the supplychains; and

4. Stimulate and inform discussions on climaterisk and opportunities within and between

companies, suppliers, regulators, andcustomers.

The supply chain figures are each split into threeparts to reflect three primary tiers:

The telecommunications/data centerservice provider. This part of the supplychain contains core assets and operationswhich are vertically integrated and locatedwithin business fence-lines. Climate risks inthis tier are generally more direct and canbe addressed directly by the company;

Primary inputs. These essential,horizontally integrated inputs are necessaryfor the successful functioning of the supplychain parts (beyond business fence-lines).Some of these inputs are international.Climate risks to both sectors pose indirect

impacts on the service provider; and The larger business and regulatory

environment. These factors indirectlyinfluence all aspects of the supply chain,and climate risks.

Figure 1 - Supply chain climate risk: Thailand floods 2011 (prepared by Acclimatise 2012)


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Figure 2 - Supply chain map for the telecommunications sector, demonstrating the chain ofgoods, services, and context that support and influence a company

Figure 3 - Supply chain map of the data center services sector, demonstrating the chain o f goods,services, and context that support and in fluence a company

The elements in each tier are organizedaccording to the way the core service provider isinfluenced by them, as well as how thatcompany can influence those elements. Thelevel of influence a company has over different

parts of its supply chain also affects the amountof information and influence a service providerhas to understand and address climate risks inthat part of its supply chain.


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These supply chain figures are populated with anumber of essential elements common to thesupply chains of US companies in both sectors.Our team identified supply chain elementsthrough a variety of methods, including throughthe sectoral definitions of the NAICS, thestructure of representative companies, and theresults of the literature scan. The value ofmaterial flows between sectors, and theinterdependencies those indicate, can also befound in data from input/output use tables (see

Annex 1). However, some key elements in bothsupply chains are not captured in input/outputtables and yet may be influenced by a changingclimate (such as government policy). Theseelements are also included in the supply chainmaps.

Both the telecommunications and data centerservices sectors have a range of climate

sensitivities, where the design and functionality

of infrastructure, equipment, and operations canbe affected by climate conditions. These includebeing sensitive to primary climate variables,such as average and extreme temperatures andhumidity as well as secondary impacts such asflooding and landslides. These are examples ofdirect climate risks. Equally as important are thesensitivities to climate impacts outside thebusiness fence-line, particularly access to asustainable and resilient supply of inputs, suchas energy and water, as well as the widerbusiness operating environment that includespolicy and regulation. These are sources ofindirect climate risks. Though the distinctionbetween direct and indirect risks is sometimes ablurred one for example, impacts at the sitewill influence the requirement for energy, water,and supplies from outside whether risks aredirect or indirect affects the ability of a companyto recognize and address these risks.

3. Literature Scan

This scan of existing publications on climate riskto telecommunications and data center supplychains provides a snapshot of the current stateof global knowledge and experience in this area,identifies gaps and challenges, and lays afoundation for further analysis andrecommendations. Those recommendations willconstitute an early step toward building climateresilience in businesses in these two sectors,

the US government, and all sectors that rely ontelecommunications and data center services.

This literature scan reveals current knowledgeon climate risks in both sectors. Our team foundthat this body of literature is small and limited,even when expanded to look at the broaderinformation and communications technology(ICT) sector, which reflects that stakeholders inboth sectors possess low awareness of climaterisks. However, this scan identifies gaps andlimitations in the current body of literature andpresents complementary information, includingcase studies of climate impacts and adaptation

responses, as well as highlights examples ofsynergies between adaptation and mitigationefforts in both industries.

All literature sources are captured in theReferences section at the end of the report.Those references that substantially address thetopic are also catalogued in an AnnotatedBibliography.

Methodology

This section describes the methodology used toreview the global literature covering climate riskissues in the telecommunications and/or datacenter supply chains. It should be noted thatthese resources do not share a commonterminology defining telecommunications anddata center services, unlike the NAICSdefinition. In particular, much of the relevant

literature on climate risk couches both sectorswithin the wider information and communicationtechnologies (ICT) sector. For instance, only afew reports focus explicitly ontelecommunications (ClimAID, 2011; Garnaut,2008, Victoria, 2006), but many other reports onICT provided relevant information.

Thoughthedistinctionbetweendirectand

indirectrisksissometimesablurredone

for

example,

impacts

at

the

site

will

influencetherequirementforenergy,

water,andsuppliesfromoutsidewhether

risksaredirectorindirectaffectstheability

ofacompanytorecognizeandaddress

theserisks.


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To identify as many relevant insights from theliterature as exist, our team used the NAICSsectoral definitions to identify referencesrelevant to both sectors couched in broaderdiscussions.

Our team looked to a broad range of potential

sources of literature. To ensure the literaturesrelevance, our team prioritized domestic USsources, particularly resources made availableby the US government and relevant trade bodies(including, for example, such organizations asthe National Academies, NationalTelecommunications and Information

Administration, United States TelecomAssociation, Telecommunications IndustryAssociation, CTIA-The Wireless Association,Business Continuity Institute, Data CenterKnowledge, and the US Department of Energy).Scanning for resources beyond the US, our

team looked for literature from comparablecountries and regions including Canada, UnitedKingdom (UK), European Union, Australia, andJapan, then searched more broadly across otherinternational sources. Sources searchedincluded government, environmentalorganizations, consultancies, academicpublications, trade groups, and businessassociations. Scholarly sources were specificallysought out using academic online portals suchas Science Direct and Google Scholar, as wellas in the relevant climate literature (including, forexample, reports from the IntergovernmentalPanel on Climate Change and US GlobalChange Research Program (USGCRP).

A set of search terms was agreed upon intendedto capture risks associated with climate changein both sectors, even if those risks were notexplicitly associated with climate. These termsincluded: climate change, adaptation, resilience,extreme weather, severe weather, heat wave,flood, storm, water, energy, and supply chain. Asnowballing method, reviewing the referencesand works cited of useful documents, wasemployed to find additional resources.

Where specific telecommunications or data

center companies were identified in the literatureas having experienced climate impacts or takenadaptation action, the websites and annualreports of these companies were investigated forfurther details. Similarly, the results belowdemonstrate that there is significant interest inthe UK on the topic of climate change in the ICTsector, leading to a more focused search for UK

policy documents to identify adaptationstrategies and principles.

Climate impacts

The ICT industry already experiences weather-related impacts, many of which are expected to

increase in frequency and/or severity due toongoing climate variability and climate change.Impacts, either observed or anticipated, areorganized below according to climate variables.While some climate impacts present risks, thereare others with potentially positiveconsequences that offer opportunities. Themajority of this discussion focuses ontelecommunications, of which much moreliterature is available than data centers, and isalso a more heterogeneous sector, in terms ofkinds of infrastructure and equipment widelyused and thus exposed to a wider range ofpossible impacts.

In the literature, climate-related risks to thesectors are categorized in many ways, includingby the following:

type of climate hazard (Horrocks et al. 2010;ClimAID, 2011; ITU, 2014)

business function/priority, (e.g. customerneeds, product manufacturing and supplychain, workforce, infrastructure, businessprocesses) (BSR, 2011)

type of consequence (e.g. degradation ofinfrastructure, availability of services, qualityof services, repair, cost, health and safety)(Horrocks et al., 2010)

level of impact (e.g. national, local,individual/organizational (Horrocks et al.,2010)

magnitude of climate change (e.g. extremeevents and chronic change) (ITU, 2014)

type of cost (e.g. operating or capitalexpenditures) (Garnaut, 2008)

location of infrastructure (above orunderground) (Horrocks et al., 2010)

The relevance of each categorization depends

on the intended primary audience, for example,business (BSR, 2011), policymakers (Horrockset al., 2010), or economists (Garnaut, 2008).The multitude of viewpoints illustrates thepotentially wide reach of climate impacts. In thisreview, we have adopted a climate hazardframing, reflecting the vast majority of theliterature reviewed, to illustrate potentialimpacts. These climate impacts are detailed forthe telecommunications sector in Table 1.


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Table 1 - Climate impacts assoc iated with the telecommunications sector

Temperature

Increases in temperature and higher frequency, duration, and intensity of heat waves create an additional burden on

keeping equipment cool in exchanges and base stations, resulting in increased failure rates (Horrocks et al., 2010;ClimAID, 2011).

Increases in mean temperature may increase the operating temperature of network equipment, leading to malfunctionor premature failure if it surpasses design limits (Ofcom, 2010).

Increases in temperature can stress telecommunications equipment and infrastructure, reducing life span (Horrockset al., 2011; Garnaut, 2008).

Increases in temperature may lead to an increase in heat-related health and safety risks to workers attelecommunications facilities, as well as at suppliers sites (Horrocks et al., 2010; BSR, 2011).

Increased energy demand during heat waves can result in power outages, which can affect the delivery oftelecommunications services. Similarly, such disruptions can increase the cost of energy supply (BSR, 2011;ClimAID, 2011).

Increased temperatures in winter may reduce cost of space heating in assets (e.g. exchanges), creating a cost-savingopportunity (Horrocks et al. 2010).

Increased temperatures may reduce the frequency of the need to cope with snow-melt water surge (flood) problemsin the long term, while in the short term, more rapid melt will increase flooding (Horrocks et al., 2010).

Precipitation

Increased precipitation (rain or snow) leads to a higher risk of flooding low-lying and underground infrastructure andfacilities, as well as erosion or flood damage to transport structures, potentially exposing cables (Horrocks et al.,2010; Ofcom, 2010).

Icing during rain may impact telecommunication lines and infrastructure (ClimAID, 2011).

Decreased precipitation can lead to land subsidence and heave, which can reduce the stability of telecommunicationsinfrastructure both above and below ground (Horrocks et al., 2010; Garnaut, 2008; Ofcom, 2010).

Decreased precipitation, in combination with increased temperatures, may increase the incidence of fires, whichposes a risk to infrastructure, especially in rural or remote locations (Garnaut, 2008).

Reduced snowfall may lessen the impact on transmission infrastructure, such as masts and antennae, requiring lessupkeep or maintenance (Horrocks et al., 2010; Ofcom, 2010).

Decreased precipitation may increase seasonal water scarcity, reducing the amount of water available for cooling(BSR, 2011).

Increased precipitation and humidity can affect the radio spectrum on which wireless communications rely. Rain andsnow absorb signals at some frequencies; therefore heavy precipitation can result in some transmitted signals notbeing received clearly or at all. Some services may also require increased transmission powers in order to withstandpoorer weather without experiencing outage. As a result, this could limit the number of users supported in a givenspectrum band (Ofcom, 2010).


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There has been limited research to date into theimpact climate change is having and may haveon data centers specifically. However, as fixedinstallations with large energy and waterrequirements, data centers are likely to be

vulnerable to the uncertain impacts of achanging and more variable climate, includingmany of the impacts listed above for telecoms.These assumptions (and more detailed researchfrom other similar sectors such as energy andwater) currently inform our understanding ofclimate risk at data centers.

It seems that they have a range of climatevulnerabilities, to both changes in average andextreme temperatures, as well as secondaryimpacts such as flooding and storms. These canbe referred to as direct climate risks. Equally as

important are the sensitivities to climate impactsoutside the data center fence-line; namelyaccess to a sustainable and resilient supply ofenergy and water. These can be referred toindirect climate risks. Often the distinctionbetween direct and indirect risks is a blurred one

impacts at the site will influence therequirement for energy, water and supplies fromoutside.

Storms, wind, and extreme events

Increases in storm frequency or intensity increase the risk of damage to above-ground transmission infrastructure

(masts, antennae, switch boxes, aerials, overhead wires, and cables), which are often final access connections tohomes and businesses, and may negatively impact telecommunications service delivery (Horrocks et al., 2010;Ofcom, 2010).

An increase in storm frequency could lead to more lightning strikes, which can damage transmitters and overheadcables, causing power outages (Horrocks et al., 2010).

Increased frequency and intensity of extreme weather events around the world increase the risk of interruptingmaterials supply (by disrupting air and sea transport) and manufacturing operations (Horrocks et al., 2010; BSR,2011). For example, the 2011 Thai floods showed how climate impacts at the regional level can affect global supplychains (see Figure 1).

Increased frequency and intensity of extreme weather events increase the risk of disruption to the electricity supply onwhich telecommunications rely (ClimAID, 2011).

Extreme weather events may make it difficult for employees to get to work or for maintenance employees to accessinfrastructure, particularly in remote transmission networks (BSR, 2011; Ofcom, 2010).

Humidity

Changes in humidity may lead to changes in patterns and rates of the corrosion of equipment (Horrocks et al. 2010).

Higher levels of humidity may also lead to new dehumidification requirements to maintain internal environments withinsystem tolerance ranges, as too much condensation can lead to short-circuiting or lead to water ingress (Horrocks etal. 2010).

Sea-level ri se

Rising sea levels and corresponding increases in storm surges increase the risk of saline corrosion of coastaltelecommunications infrastructure as well as erosion or inundation of coastal and underground infrastructure

(ClimAID, 2011). Sea-level rise may also lead to changes in the reference datum for some telecommunication transmission calculations

(Horrocks et al., 2010).

Rising sea levels will impact the operation of data centers and service centers upon which telecommunications rely(Horrocks et al., 2010)


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Table 2summarizes some of the direct andindirect climate risks that could affect the datacenter services sector and is based on a briefreport issued by Acclimatise (2008).

Some further insights from the literature specificto data centers and climate impacts are

discussed below.

The most recent IPCC reports make referenceto a wide range of components and sub-systems for telecommunications systems thatare within cities may need adaptation to theimpacts of climate change including telephonepoles and exchanges, cables, mobile telephonemasts and data centers. (IPCC 5AR WGII,2014). The research cited by the IPCC to justifythis statement only briefly mentions data centersand presents an indication of which climatevariables and impacts could pose an issue todata centers (see Figure 4) (Engineering the

future, 2011). There is, however, no indication ofhow this matrix was constructed, and theapproach is fairly generic and over-simplified.Nevertheless, it remains the only publishedexample identified from the literature review ofan attempt at developing a sectoral riskassessment exploring the probability andpotential level of damage of a range of ICTassets to climate variables.

Despite this apparent lack of evidence, there is asense amongst the business community thatclimate change could pose a significant threat todata centers and business operation in general.In a recent snapshot report of climatedisclosures made by 270 of the largestEuropean listed companies across 20 countries,the impact on data centers was brought up as arisk to business continuity. For example, the INGgroup was quoted as saying (we) rely heavilyon efficient data IT infrastructure to provideuninterrupted and efficient services tocustomers. In case of severe climate conditionsleading to flooding (in our) data centers in theNetherlands, services to customers would beseverely impacted. (CDP, 2014)

1The climate risks listed in Table 2 are founded upon

Acclimatises technical understanding of data centersequipment and operations in the context of existing expertiseof climate risks to infrastructure and equipment generally.

Table 2 - Direct and indirect c limate impactsassociated with data centers (adapted from

Accl imatise, 2008).1

Direct climate impacts

Additional burden on cooling equipment from increasesin temperature and increased frequency of heat waveevents

Reduction in operational efficiency and increasedcomponent failure rates as increases in averagetemperatures and associated humidity affect baselinedesign parameters. For example, the loss of ambientcooling potential.

Conflict between energy efficiency targets and short-term spikes or incremental increases in energy demandfor cooling purposes

Increased demand for cooling during heat wavescausing power failures in local transmission grids due to

excessive loads.

Damage to operational equipment and potential loss ofdata through flooding of buildings, whether due to sea-level rise, increased river flood risk, groundwater orincreased risk of flash flooding when heavyprecipitation overwhelms drainage systems

Damage to building fabric or overhead cables fromstorms; subsidence damage to undergroundcommunications infrastructure, with significant costimplications

Increased demand on backup power generators andbatteries which have their own environmental impactse.g. greenhouse gas emissions, hazardous waste.

Indirect climate impacts

Restricted supply of (cooling) water during periods ofdrought

Impacts on supply chains that provide replacementhardware

Workforce (both technical staff and security) affected bylocalized events and unable to travel to their workplace

Restrictions on energy supply due to heat waves and/ordrought

Damage to upstream/downstream communicationsinfrastructure e.g. by storms, flood or landslides.


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The reason for this apparent awareness of thethreat of climate change comes in part from pastexperiences with extreme weather. While thereis certainly a dearth of quantitative analysis withrespect to data centers and climate risks, pastevents provide a tangible insight into the impact

climate change is and will have on businesscontinuity, not only for the data center ownersand operators but also the customers who areincreasingly reliant on their infrastructure andservices (see Table 3).

Figure 4 - The low, medium, and high potential for different climate variables and impacts tohave a negative impact on ICT infrastructure, including data centers (Engineering the future,

2011)

Table 3 - Examples o f weather event impacts on data centers in the US and UK

Rains flood Seattle T-Mobi le data center (datacenterknowledge.com 4 Dec 2007)The Seattle area was hit by more than four inches of torrential rain and gale-force winds, resulting in the flooding of a T-

Mobile data center in Bothell, Washington. The flooding resulted in an outage that was reported to have taken downservers supporting the T-Mobile service activation portals and company websites. Account activations and the companywebsite were affected, and no accounts could be accessed.

Hurricane Katrina damages data center (Computerworld 19 Dec 2007)A data center serving 128 New Orleans public schools was located on the fourth floor of an administrative building whenHurricane Katrina hit. The hurricane blew the air conditioning system off the roof, allowing rain ingress. When power wasrestored, there was no air conditioning, and the rainwater and heat corroded contacts on switches. Other gear overheatedand failed. Repairs to the data center cost in excess of $3 million and took several months.

Fasthosts knocked offline by s tormy weather (ITproPortal 2014)In January 2014 one of the UKs largest internet hosting providers was knocked offline after stormy weather caused apower outage that left many customer without websites or email addresses. Compounding the issue what the fact that thefirms communications systems were also affected which made it difficult to update customers during the disruption, which

lasted several days.

Pipex-hosted sites impacted by flooding (The Register 27 Jun 2007)Pipex was the first ISP to report major technical problems caused by extreme weather in the UK during summer 2007. Afiber break caused by flooding in the city of Sheffield affected two data centers located in two other cities, impacting thefirms domain hosting business 123-reg. Customers experienced extended delays in communication between the northand south of England for approximately 1.5 hrs.


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Discussion

There are several common themes in theliterature on the character of climate risks toboth telecommunications and data centers. Acentral theme revolves around the magnitude ofimpact and the rate of change associated with

climate change. Furthermore, many of thefeatures of both sectors create a complexrelationship to climate change, influencing theirvulnerability and providing both challenges andopportunities to adapt. Many of these factorsalso interrelate to each other; for example,shorter infrastructure lifespans and rapidtechnological change create an additional levelof complexity. Likewise, there is an importantinterplay between water and energy. Theseelements are further explored below.

A. Short-term and long-term change

An important distinction raised is between thefuture impact of short-term extreme weatherevents and long-term incremental climatechange. There is acknowledgement in theliterature that changes in the nature andfrequency of extreme events are currently ofmost concern, with less attention given to slow-onset changes (Horrocks et al., 2010; ITU,2014). Extreme weather events dramaticallyshow the potential economic cost of climatechange in the near term, and some companiesare already responding to these types of events.

However, cumulative or gradual climate impactsare less likely to be on companies radars due toassociated uncertainty, failure to spot thesignals, the absence of a driving motivation likean extreme event, and short-term businessdecision-making time frames. These impactscan lead to incremental costs and can decreasethe expected lifespan of assets andinfrastructure (IISD, 2013). Incremental changesalso reduce operating margins and thresholds,which may not be immediately obvious in theshort-term. The risk is that this also reduces theoperating margins for handling extreme events.

B. Uncertainty of climate change

Some authors suggest that it is the currentlyunknown potential of future climate changeimpacts, expected to be characterized by lowprobability but high magnitude, which pose thegreatest risks to the sectors. These potentialrisks include, from a UK source, fires from

excessive heat beyond design standards orflood damage to critical system components(Baglee, Haworth, & Anastasi, 2012). Inaddition, there is more literature on the first-order impacts of extreme events and weather ontelecommunications (Quanta Technology, 2009),and relatively little evidence of assessments onsecondary or tertiary climate change impacts.Similarly, there is more emphasis on climaterisks to infrastructure than to the enterprisesupply chains that support business in both

sectors. Though literature on climate risks inboth sectors is scant, more of what is availablefocuses on telecommunications.

C. Business timescales

First, telecommunications infrastructurelifespans are typically shorter than those of otherinfrastructure types (for example, energy, water,or transport) and are thus not as great a liability(Horrocks et al., 2010). Much of theinfrastructure in use today in the UK forexample, apart from towers, cables, and

underground tunnels, will be replaced before the2050s (ibid.). In addition, the pace oftechnological development is rapid. Thesefactors combined present both a challenge andan opportunity.

On the positive side, rapid technologicaldevelopment and shorter infrastructure lifespansprovide inherent flexibility and ability to respondquickly to changes in climate, providing an

Extremeweathereventsdramaticallyshow

thepotentialeconomiccostofclimate

changeinthenearterm,andsome

companiesarealreadyrespondingtothese

typesofevents.Theseimpactscanleadto

incrementalcostsandcandecreasethe

expectedlifespanofassetsand

infrastructure.Incrementalchangesalso

reduceoperatingmarginsandthresholds,

whichmaynotbeimmediatelyobviousin

theshortterm.Theriskisthatthisalso

reducestheoperatingmarginsforhandling

extremeevents.


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existing level of resilience (ibid.). However, thisalso means that the sector does not take a verylong-term view of planning. This is compoundedby the high level of competition within the sector.The US telecommunications industry is almostentirely privately owned and highly competitive,in contrast to other service industries that rely onlarge infrastructure (ClimAID, 2011). This meansthere can be a tendency to focus on profitabilityand short-term market share rather than onadopting longer-term strategies that take intoaccount future climate change. Longer-termstrategies might involve improving the resiliencyof infrastructure rather than simply replacing itas it is damaged (ibid.).

D. Interdependencies

Virtually every sector is dependent ontelecommunications. Emissions mitigation

policies in other industries often encouragetelecommuting through remote working orteleconferencing in place of travel. Thusmitigation efforts across other sectors willdepend on the ability of telecommunications(and more broadly, ICT), to adapt (Horrocks etal., 2010). In addition, the consequences offuture impacts of climate change will be greater,as reliance on telecommunications will onlyincrease (Baglee et al., 2012). There is asignificant need to map out the relationshipsbetween telecommunications and other sectors.

The telecommunications sector is alsocharacterized by interdependency within its ownnetwork, as well as among other sectors,notably water, energy, and transport (Defra,2011; URS, 2010). Data centers are highlyinterdependent on energy and water.Interdependencies compound the impacts thatcan be felt in the wake of extreme events. Forinstance, when there was a loss of power duringHurricane Sandy, users had trouble findingenergy to charge cell phones and the backupbatteries in cell towers were quickly exhausted(Kahn, 2012).

Another type of interdependency relates toshared infrastructure, which is increasingly afeature of the telecommunications industry in theUS and internationally. To achieve economies ofscale, in response to both regulation andcommercial interest, companies adopt a varietyof infrastructure sharing models, sharing bothpassive (non-electronic, such as towers, basetrans-receiver station (BTS) shelters, and power)and active (electronic, including spectrum,

switches, and antennae) infrastructure. Whilethis contributes to business efficiency andencourages new entrants to the market, it mayhave a negative impact on the resilience of thetelecommunications system by increasing thedependence of one party on another, not all ofwhich may meet the same standards ofresilience. Likewise, shared infrastructurereduces redundancy across the entire domesticnetwork. Thus, the ability to operate locallybecomes dependent on artifacts of the systemwhich will be remote from the user, under thecontrol (operational and legal) of other partiesand generate potential single points of failure(Horrocks et al., 2010). Furthermore, becausetelecommunications companies do not own theentire infrastructure they use, like cell towers,there is less incentive to invest in buildingclimate resiliency.

E. Equity

A recurring question in the literature is howequity is affected depending on whose resilienceis being considered. While from a nationalperspective, telecommunications systems mayalready be resilient for the reasons cited above,from an individual end-user perspective(household or business), what matters is theavailability and quality of services from theirlocal telecommunications network (Horrocks etal., 2010). Different parts of society, such aslow-income, elderly, sick, or rural groups, are

more exposed than others to climate risks in thetelecommunications sector. In addition, it maybe difficult for people in those groups to reportoutages during extreme events andemergencies, such as during ice and snowstorms when mobility is limited (ClimAID, 2011).The issues surrounding equity with respect toremote access hold particular importance in theUS due to its geographical expanse.Compounding this is the fact that there is lessunderstanding of the specific impacts of climatechange impacts on local communities.

There are also equity considerations in the

corporate world, particularly in terms of small-and medium-sized enterprises relative to largecorporations. The latter, often based in urbanareas, have flexibility in managing theirtelecommunications systems and are able totransfer ICT requirements among sites aroundthe world to avoid risks, while the former aremore likely to have single sites and less capacityto plan or invest in future resilience, and are thus


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more vulnerable to weather-related disruptions(Horrocks et al., 2010). This is an importantpoint considering the small businessprocurement goals US federal agencies arerequired to meet. Similarly, there are higher risksto employees who work remotely and relyheavily on telecommunications.

F. Water

The enormous volume of water required to coolhigh-server-density centers is making watermanagement a growing priority for data centeroperators. This importance has encouraged datacenter operators to upgrade local waterresources infrastructure, often with co-benefitsfor the local community. For example, in a movethat will reportedly save millions of gallons ofpotable water for the local community, Microsofthas teamed up with the City of Quincy,

Washington to retool the citys water treatmentinfrastructure. As part of the partnership, a multi-million dollar drinking-water treatment plant builtby Microsoft to support its data center will beleased to the City of Quincy for just $10 a year.The plant will be retrofitted and expanded tosupport the water reuse initiative, which willallow other nearby businesses and data centersto benefit (Miller, 2013). Elsewhere in northernEurope, Google has recently implemented acooling system which uses sea water at one siteat Hamina, southern Finland (Google, 2014).

The National Security Agency (NSA) provides afurther example of data center operators takingaction to improve water supply security. A newdata center being built by the agency will use upto five million gallons a day of treatedwastewater from a Maryland utility. The agencyrecently reached an agreement with HowardCounty to use treated waste water also knownas grey water that would otherwise bedischarged untreated into the Little PatuxentRiver (Miller, 2013).

The reports from Microsoft, Google, and theNSA do not, however, make any suggestion that

the upgraded drinking water treatment andwaste water treatment facilities will be designedto be resilient to changing climatic conditions,such as changes in seasonal precipitationregimes.

There have also been examples of alternativesto the use of large volumes of water for coolingdata centers. We are beginning to see datacenters using dry coolers (closed loops) to cool

data centers in combination with operatingequipment capable of operating at highertemperatures based upon revised guidelines(e.g. DOE, 2014b). This is part of a trend towardincreased acceptance for less stringentguidelines with respect to cooling hardware. Forexample, best practices are making their wayinto the market thanks to organizations such asthe American Society of Heating and Air-Conditioning Engineers (ASHRAE) publishedguidelines for classes of computer serversshowing that the equipment can operate athigher temperatures. The Green Grid alsopublished guidelines and maps showing thatfree cooling

2is possible for a significant portion

of the year across most of the US. However,these changes do not take into account that asambient air temperatures increase it may meanthe opportunity to operate equipment withoutcooling diminishes. This could also mean the

new guidelines would be quickly outdated. Amore durable approach would be to understandthe temperature range and the efficiency fall offthat servers can operate within. This thenmapped against increasing temperatures wouldgive you an optimum point at which you need toswitch to a cooling system.

G. Energy for data centers

The importance and recognition of addressingenergy consumption is spreading in the datacenter sector. The US Department of Energys

Federal Energy Management Programhighlighted the need for data center owners toemploy industry energy efficiency best practicesto lower both capital and operating costs, whileensuring sustainability through reduced energyand water use (Tschundi, 2013). In the UK,data centers typically see turnover growth ratesof 15 percent per year. In the face of growingenergy demand (and associated costs), the UKgovernment has recently announced theintention to extend Climate Change Agreements(CCAs) to the data center industry, which willprovide incentives for the industry to become

more energy efficient (Ricardo-AEA, 2014). Inboth cases, there was, however, no indicationthat climate change impacts should be taken

2Free cooling is the method of employing relatively colderexternal air temperatures to cool internal systems without theuse of air conditioning.


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into consideration explicitly in this decision-making process.

There has been a recent trend to locate datacenters in cooler climates in remote locations.For example, Facebook recently revealed plansto locate one in Lulea, Sweden, right on the

edge of the Arctic Circle (Stevenson, 2014). Theaim is to reduce the need for active cooling,therefore reducing energy costs. A reported co-benefit is that the local community benefits fromthe heat generated by the servers during thewinter months. The reduction in the amount ofcooling required does not necessarily protect thesite from other impacts, like storms orpermafrost melt. For the US Government andmany US-based companies, however, locationsites are for security reasons limited to domesticregions.

Recent reports suggest large data center

operators, such as Apple, are investing in theirown renewable energy in order to deal with thegrowing need for energy (Sverdlik Y., 2014).While this has clear implications for climatechange mitigation, it was not suggested in thereports that future climate conditions were takeninto consideration when designing and installingthe energy generation infrastructure.

Lawrence Berkeley National Laboratory (LBNL)evaluated three data centers for potential energyefficiency improvements during the summer of2012. It was concluded that annual cost savingscan be achieved by simply aligning IT rack unitsand equipment rows into hot and cold aisles(Mahdavi, 2014). Relatively straightforwardmodifications to center configurations can formthe basis of climate risk management measures(see Table 4). In this instance, LBNL highlighteda potential way data centers could be designedor upgraded to ensure they are equipped toprovide the cooling needed to ensureprocessors, servers and other equipment canoperate efficiently and prevent servers failing inthe face of increasing temperatures andhumidity.

There have been suggestions that on-sitecombined heat and power (CHP) technologiescould improve energy reliability and reducecosts at data centers (Darrow, K. and Hedman,B., 2009; Miller, 2014 A). It is argued that abroader application of CHP will lower demandfor electricity from central stations and reducethe pressure on electric transmission anddistribution infrastructure. While extolling thevirtues of such technologies, there has been

little discussion about the possible impact ofclimate change on the efficiency and reliability ofthis form of energy generation. For example,power generation of a Combined Cycle GasTurbine (CCGT) facility varies with ambienttemperature, which affects the net powergenerated in the gas and steam cycle (Arrietaand Lora, 2005).

Data center operators are also using theavailability of local, cheap hydropower as a wayof reducing energy costs. For example, theoperator ROOT has recently lowered collocationprices in Montreal because of the cheap hydropower, cool climate and great connectivity toNew York, Toronto and Europe (Verge, 2014).

Again, however, there is no attention paid to thepotential longer-term impact of climate changeon the availability and reliability of thishydropower as hydrological systems are

perturbed.

H. Energy for telecommunications

There is similar recognition in the literature ofthe telecommunications sectors reliance onenergy. Cooling and operating information andtelecommunications technology equipmentaccounts for 1.5 percent of the energyconsumption in the United States and is growing(The Economist, 2008, in ClimAID, 2011). Thisreliance increases the sectors vulnerability toclimate variability and change, as disturbances

to the power grid often affecttelecommunications infrastructure (ClimAID,2011). For example, in the US,telecommunications and power lines often sharethe same poles (ibid.). However, there has beenlittle detailed assessment of how climate changeimpacts the link between energy andtelecommunications, despite the recognition thatthis is a critical dependency (Horrocks et al.,2010).

Climate impacts on power supply includeextreme weather, such as ice and snowstorms,thunderstorms, and hurricanes, also pose a risk

to telecommunications because they maydamage infrastructure. A 2006 snowstorm inwestern New York helps illustrate thisvulnerability. An early wet snow caused treebranches to break and damage power lines,causing 93,000 reported disruptions totelephone service in about 30 days (ClimAID,2011). Gradual changes in climate are alsoimportant, as increased temperatures and heatwaves may lead to brown- or blackouts from


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overload due to increased demand for electricityfor air conditioning (ClimAID, 2011).

The reliance of the telecommunications sectoron the electricity grid means that vulnerability isexacerbated in remote areas that are not wellconnected to the grid. This has prompted some

companies to use renewable energy solutions topower telecommunications infrastructure. Forexample, Verizon employs a hybrid renewableenergy microgrid to power itstelecommunications tower in a remote ski site inNorthern California (Marketwired, 2014).

There is also a question in the literature aboutthe increased need for energy in new generationtechnologies, which are faster and require moreprocessing capacity, despite generally beingmore energy efficient. Whether or not theincreased energy demand will cancel out thebenefits of energy efficiency is a question for

further research (ClimAID, 2011).

I. Adaptation strategies and princip les

This section describes the range of adaptationstrategies and actions identified in the literaturethat telecommunications and data centercompanies are taking in response to extremeweather or climate change. These come both inthe form of recommendations of future actionsas well as in observed practice. Adaptationinitiatives are categorized within the followingbroad strategic categories: technical, strategic,

and institutional. Where possible, examples areused to illustrate these strategies and actions.

J. Technical

Throughout the literature, most adaptationactions underway or recommended are technicalfixes or adjustments. These options generallyinvolve engineered, built environment, andtechnological solutions; the improvement ofexisting practices and the development of newones; as well as improved planning,maintenance, and design. These types of

actions relate to the following business activities,categorized by BSR (2011)

as value protection strategies: site and assetrisk assessments and continuity planning;strengthened resilience of business assets andprocesses; improved resource efficiency andconservation in manufacturing sites andprocesses; supply chain risk assessment andmanagement; and workforce protection. Itshould be noted that within these categories, thecurrent focus of the literature is on adaptation

options pertaining to physical sites, assets andprocesses, and less on supply chain activitiesand relationships which are further removedfrom the business itself. Table 4 describes theseactions in detail.

Anadaptationstrategyincludesthe

implementationofprocurement

processes(both

corporate

and

government)thatrequireanimproved

levelofclimateresilience,emphasizing

servicecontinuityratherthan

compensationfordisruption.Thiswould

helpcreateamarketforclimateresilient

servicesandencourage

telecommunicationsserviceprovidersto

incorporateadditionalclimateresilience

intotheirprices.


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Table 4 Adaptation actions focused on physical sites, assets, and processes from the literature

Strengthened resilience of business assets and processes

Use reprogrammable or chameleon technologies, which can enable a range of different functions, eachconfigured for the particular environmental conditions encountered during a products life (Horrocks et al., 2010).

Make the core/backbone, the transmission line that carries data gathered from the smaller lines with which itconnects, redundant for all service areas and resilient to all types of extreme weather events; provide reliablebackup power with sufficient fuel supply for extended grid power outages (ClimAID, 2011).

To reduce vulnerability of flooding in central offices, raise equipment from the ground floor to higher floors. This hasalready occurred many times when obsolete electromechanical switches were replaced by smaller digital switches,causing complete floors to be vacated.

Develop a set of minimum national standards for telecommunications infrastructure resilience, potentially in linewith commercial decision standards, to 1) identify potential weaknesses and 2) stimulate adaptation action(Horrocks et al., 2010).

Introduce strategic or dynamic nodes for specific locations to enable interconnectivity under disaster conditions,

particularly in rural areas (Horrocks et al., 2010).

Decouple communication infrastructure from electric grid infrastructure to the extent possible and make morerobust, resilient, and redundant (ClimAID, 2011). This could, for example, involve the use of microgrids. UrbanGreen Energy (UGE), a distributed renewable energy solutions provider, has a particular service offering fortelecommunications companies to ensure constant uptime. The company was recently contracted by a confidentialMiddle Eastern government entity to provide distributed renewable energy microgrids to power its remotetelecommunications towers (Marketwired, 2014).UGE has also provided hybrid renewable energy solutions to atelecommunications tower operated by Verizon in a remote ski site in Northern California. These types of solutions,typically used for telecommunications needs in emerging markets and remote locations, may also prove useful instrengthening climate resilience more broadly, in urban centers as well as hard-to-reach places.

Implement procurement processes (both corporate and government) that require an improved level of climateresilience, emphasizing service continuity rather than compensation for disruption. This would help create a marketfor climate resilient services and encourage telecommunications service providers to incorporate additional climateresilience into their prices. Although there is little evidence of procurement processes and specifications beingchanged to take into account the impacts of a changing climate, this is seen by this report's authors as a criticaladaptation action. There may also be a need for a government role to coordinate services provided to ensurenational interests, as well as commercial needs are represented (Horrocks et al., 2010).

Minimize the effects of power outages on telecommunications services by providing backup power at cell towers,such as generators, solar-powered battery banks, and cells on wheels, or COWs, that can replace disabledtowers. Extend the fuel storage capacity needed to run backup generators for longer times (ITU, 2014).

As stresses on the grid system increase with rising temperatures, data center operators must ensureuninterruptable power supplies are maintained and tested regularly and that backup generators have adequate fuelreserves on-site. Proper maintenance of generators is also important, for example they need weekly testing/cycling(Acclimatise, 2008).

Protect against outages by trimming trees near power and communication lines, maintaining backup supplies ofpoles and wires to be able to expediently replace those that are damaged, and having emergency restorationcrews at the ready ahead of the storms arrival (ITU, 2014).

Increase resilience against temperature increases could involve developing computer chips which will operate athigher optimal temperatures (Horrocks et al, 2010).

Relocate central offices that house telecommunications infrastructure, critical infrastructure in remote terminals, celltowers, etc., and power facilities out of future floodplains, including in coastal areas increasingly threatened by sea-level rise combined with storm surges (ITU, 2014).


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Place telecommunication cables underground where technically and economically feasible (ITU, 2014), and designthem to withstand hotter temperatures and an increased risk of groundwater flooding and subsidence, possiblyexacerbated by increased temperatures and reduced summer rainfall (Defra, 2011).

Replace segments of the wired network most susceptible to weather (e.g., customer drop wires, which extend anopen wire from a pole to a building) with low-power wireless solutions (ITU, 2014).

Data center operators should consider establishing the ability to switch the computational load to other datacenters in their networks in cooler locations around the globe (Horrocks et al., 2010).

Develop high-speed broadband and wireless services in low-density rural areas to increase redundancy anddiversity in vulnerable remote regions (ITU, 2014).

Improve resource efficiency and conservation in manufacturing sites and processes

Minimize consumption of and reuse resources in response to increased demand and decreased availability andreliability of supply (BSR, 2011).

Implement energy-efficiency initiatives

Assess and implement renewable energy initiatives

Supply chain risk assessment and management

Evaluate supply chain risk due to climate change and develop business continuity plans (BSR, 2011). An examplefrom the wider ICT sector is that of EMC, whose Global Supply Chain groups business continuity programassesses the potential impact of events on its suppliers and ensures that mitigation plans are in place for allmedium- and high-risk areas and suppliers, a process that could integrate climate risk management into existingsupply chain management (ibid.).

Assess disaster recovery processes and to what extent they take account of possible extreme climate eventswhich may disrupt the distribution of new equipment. A key focus could be on potential transport problems causedby climate-related disasters (ITU, 2014).

Site and asset risk assessments and continu ity planning

Improve the spatial planning of the location of key buildings and facilities, taking into account climate changeconsiderations. When assessing international locations, operators and owners should assess the risks associatedwith changing climate hazards in each country. Decisions made today based on historic operating andmaintenance costs for a country may not be robust in the face of inevitable climate change and may impactfinancial viability. For example, natural hazards exposure maps specifically for US-based data centers have beendeveloped (Uptime Institute, 2010). Another example is from Telecom NZ, a New Zealand telecommunicationsoperator, which reports that it is actively involved in mitigating flood risk by reviewing design standards and facilitylocation, though no further details are publicly available (Telecom NZ, 2014).

Assess the location of backup generators, which are often located outside the main building near ground level, andraise them if necessary to reduce the risk of failure due to flooding. Flood maps may be used for this exercise,available online from the Federal Emergency Management Agency (FEMA) (ITU, 2014) seehttps://msc.fema.gov/portal

Incorporate climate change into existing corporate risk assessment procedures, enterprise risk management

(ERM) systems, and business continuity programs. For example, climate risks form part of the operational risks in

Telefonicas risk management model (ITU, 2014).

Workforce protection

Monitor and protect workforces against potential health risks (BSR, 2011).

Explore opportunities for remote working (ITU, 2014).

Understand where workers live and how their journey to work will be affected by an extreme event, noting thateven if the sectoral assets are resilient, the workers needed to operate them may not be able to get to the site,either because of access and transport disruptions or because they are faced with personal challenges (e.g.homes are flooded).


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K. Institutional

Institutional options involve the design andamendment of laws and regulations, the designand implementation of government policies andprograms, and financial/economic options that

incentivize building resilience.UK policy provides an example of adaptationstrategy at the national government level. TheUK Climate Change Act of 2008 gives theDepartment of Environment, Food and Rural

Affairs (DEFRA) Adaptation Reporting Powerthe authority to request that the organizationsresponsible for essential services andinfrastructure (including telecommunicationsregulator Ofcom) report on the current andfuture predicted risks and impacts of climatechange on their organization and their proposalsfor adapting. These requests have been found to

be important in providing a framework forgreater consideration of climate change by keyinfrastructure organizations, in building capacityto assess and monitor climate risks, and inproviding examples of best practice (CranfieldUniversity, 2012, in IIED, 2013). However, itshould be noted that Ofcom has limited statutoryduties in relation to resilience and its regulation(Horrocks et al., 2010). Ofcom itself states in itsreport that it is unable to provide a detailedassessment of climate impacts on the sector,because this type of data is held by operatorsand will differ based on the specific network,physical location, and planning rules (Ofcom,2010). Therefore, engagement oftelecommunications service providers inproviding a more complete picture of climatevulnerability and risk is crucial (UKCIP, 2013).

The UK government also carried out anInfrastructure and Adaptation Project thatexamined the risks to four infrastructure sectors(including ICT) and identified potential solutionsfor improving climate resilience of new andexisting infrastructure. This involved thecommission and publication of four studies, onefor each sector. The study relating to the ICT

sector, Adapting the ICT Sector to the Impactsof Climate Change by Horrocks et al., standsout among the global literature on ICT andclimate risk and is one of the primary sourcesused in the present report. These studiesinformed the 2011 update of the NationalInfrastructure Plan, as well as subsequentupdates. Further research driven by governmentcould be a way to increase consideration ofclimate change in existing and new

infrastructure planning and identify priority actionareas.

Another adaptation strategy is to reassess anddevelop industry performance standards toincorporate climate change considerations(ITU,2014). The International Telecommunication

Union (ITU), the specialized agency of theUnited Nations responsible for ICTs, has takenthe lead on engaging the global community toaddress climate change through the use of ICTs.The Study Groups of ITUs TelecommunicationStandardization Sector (ITU-T) bring togetherinternational experts to develop internationalstandards known as ITU-T Recommendations,which act as defining elements in the globalinfrastructure of ICTs. One of these groups,Study Group 5 SG5, focuses on environmentand climate change and includes a specificquestion on ICTs and adaptation. Specific work

items for SG5 include (ITU, 2014): Recommendations to support adaptation to

climate change and improve the resilienceof the ICT infrastructure to the impacts ofclimate change

Practical examples and best practices ofICT standards to support adaptation toclimate change for countries and ICTsector.

The development of new standards for ICT andadaptation, which will encompass thetelecommunications sector, would provide a

common starting point to identify and reduce therisks due to climate variability and change.

L. Social

Social options involve educational, informational,and behavioral approaches to address climatechallenges. The fact that little has been writtenabout climate change risks in thetelecommunications and data center sectorspoints to the lack of knowledge and awarenessabout potential climate change impacts on thesector. In response, research has been

recommended as an adaptation strategy, both tobetter understand climate impacts on the sectorand also to develop new technologies torespond to those impacts. Research and datacollection recommendations include hazard andvulnerability mapping, a review of past weatherimpacts on telecommunications, riskassessments, and an assessment of the role ofvarious stakeholders in addressing climate risks(Horrocks et al., 2010). In terms of innovation,


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areas for research and development include(ITU, 2014):

Creation of a standardized charginginterface so that any phone can berecharged by any charger

Winning support for and developingalternative telecommunication technologiesto increase redundancy and/or reliability,including free-space optics (which transmitdata with light rather than physicalconnections), power line communications(which transmit data over electric power

lines), satellite phones, and ham radio.(Itshould be noted that this adaptation ofdeploying power line communicationsconflicts with another adaptation strategymentioned above: decouplingtelecommunications infrastructure from theelectric grid. This conflict illustrates theneed for further research and cost benefitanalysis of adaptation options.)

Awareness raising, among bothtelecommunications providers and theircustomers, is another recommended resilience-building strategy. One example is atelecommunications company educating usersto not overload networks during a disaster byencouraging customers to send a text messageabout the tornado, as opposed to taking apicture and sending it from their cell phone(which uses more network capacity) (ClimAID,

2011). Another way to raise awareness is viaplatforms for dialogue and engagement. The UKEnvironment Agencys Climate Ready Servicehas set up an Infrastructure Operators

Adaptation Forum, which is composed of thecountrys main infrastructure organizations, theirregulators, and government departments. Thisprovides a platform for these stakeholders toengage in discussion leading to a sharedunderstanding of best practice in climateresilience (UKCIP, 2013).

M. Strategies at the adaptation-mitigationnexus

The telecommunications sector is highlydependent on the energy sector, and as such,contributes to GHG emissions (though itsemissions are relatively small compared withother industries). Global telecommunicationssystems are estimated to account for about 0.7percent of global CO2 emissions (Kelly &

Adolph, 2008). However, due to the proliferation

of telecom devices, as well as the need for moreprocessing power for the growing transmissioncapacity of new generation technologies,emissions are predicted to increase more thantwofold (ibid.). Cooling and operating informationand telecommunications technology equipmentalready accounts for 1.5 percent of the energyconsumption in the United States and is growing(The Economist, 2008, in ClimAID, 2011). It isthus important to consider mitigation in concertwith adaptation. Adaptation strategies should notbe implemented at the expense of mitigation, orvice versa, but optimal strategies would deliverprogress against both goals.

Many telecommunications service providersboth in the US and internationally engage inenergy efficiency and renewable energyinitiatives that provide benefits for buildingclimate resilience as well as reducing GHG

emissions. For example, in 2013, Verizonannounced an investment of $100 million in asolar and fuel cell energy project which isexpected to produce more than 89M kWh ofelectricity in its first year. That energy will powercritical data centers, central offices, andbuildings across six states. This will alsoeliminate more than 10,000 metric tons of CO2,which is enough to offset the annual CO2emissions from more than 1 million gallons ofgas (Verizon, 2013). This type of initiative is alsoadaptive as it reduces dependency on theelectricity grid, which is expected to suffer as aresult of increased energy demand during heatwaves. The reduction will lessen the impact frompower outages on the operator, which affect thedelivery of services. This also reduces energycosts, savings that could be directed towardbuilding resilience.

Energy efficiency initiatives often offer a numberof synergistic benefits, such as cost savings,and most telecommunications companiesengage in such initiatives for multiple reasons.Tata Teleservices, one of Indias maintelecommunications providers, engages inenergy efficiency initiatives, and while these are

primarily aimed at reducing emissions, they alsodouble as promoting adaptation. For example,the company has upgraded to heat-resilientequipment in its BTS stations, reducing the needfor air-conditioning (and energy consumption)but also increasing resilience to risingtemperatures (S. Mathew 2013 pers. comm, 8

August). Finally, with the increasedmainstreaming of mitigation initiatives, this may


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provide an accessible avenue for alsoimplementing resilience-building measures.

As demand for telecommunications servicesgrows and as newer, faster technologies thatrequire more capacity are introduced, it will beimportant to conduct research to evaluate the

efficiency gains of new technology relative toincreased energy use (ClimAID, 2011). Althoughnew generation technologies tend to be moreenergy efficient, they require more processingpower due to their higher transmission capacityand overall demand for these services keepsincreasing, suggesting that total demand forenergy may increase at faster rates than gainsin efficiency.

While not necessarily focused on climatechange, there is a growing body of research thatexamines how power, cooling, monitoring, andservice inadequacies, particularly in the data

centers sector

gsa climate risk study for telecom and data centre

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