So what makes Dresden-based AoTerra such hot property? The fact that it does just that: heats properties. And these are no ordinary heaters. These are heating systems with servers inside them.

AoTerra’s system comprises a server unit connected to a heat exchanger or heat pump, which is in turn connected to the property’s ventilation system, and a hot water tank. It’s intended for new-build and renovated properties that meet modern energy efficiency standards and, according to the company, efficiency is nearly 100 percent (the company also only uses “green” energy for its devices).

Each system has a broadband connection and forms part of a distributed, OpenStack-based data center. The result is AoCloud, which offers compute, block storage and object storage (all are currently in beta). Customers can be pretty sure their cloud is as green as it gets, but there are other benefits too – the distributed nature of the cloud could mean low latency, and AoTerra is touting security as a plus, too.

AoTerra is also involved with a couple of Europe-funded projects, namely LEADS (trying to create a “data-as-a-service” model on top of geographically distributed micro-clouds) and ParaDIME (trying to making computing more energy-efficient).

This isn’t the first time we’ve seen the idea of using waste heat from data centers to heat homes — London’s Telehouse West data center was going to do that, although the local council never set up the distribution network and the housing development never got built due to the recession. Telus is planning something similar in Vancouver. But those were about data centers heating nearby developments; what AoTerra has come up with is a step beyond.

Property owners or developers pay €12,000 for the system (about the same as a normal heating system), but they don’t have any ongoing operating costs – from that point on, they get free heating and hot water. And AoTerra gets out of having to pay for air conditioning, which is a pretty major chunk of the cost of running a traditional data center.

Overall, AoTerra claims, its distributed data center costs the company about a tenth of the normal set-up costs for a data center, with its running costs being less than half and CO2 emissions around a third. The company has only been going for a year, and it already has 20 AoHeat devices with over 200 servers installed. It had a turnover last year of €100,000, and has already signed contracts worth €400,000 this year.

AoTerra says it’s negotiating €1.6 million worth of contracts at the moment, and has another €3.1 million worth in the pipeline. This year it wants to sell 100 AoHeat devices, and next year 500 – at that point, it would be one of Germany’s biggest cloud providers. They need the crowdfunding investment to grow the team to match demand, they say.

I’ve yet to see one of these units in action, but the pitch is intriguing to say the least.

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Alcatel-Lucent launched GreenTouch in 2010 with the stated goal of making wireless and wireline networks 1,000 times more energy efficient than they are today in the long term. Three years later the consortium — which has grown to include 53 vendors, carriers and research institutions — is releasing its first set of recommendations to green up the telecom industry.

The recommendations are a long list of technologies and network topologies, some of which would require mere software tweaks to current equipment while others would require new telecommunications standards and a new generation of network equipment, said Thierry Klein, GreenTouch’s technical committee chair and head of Bell Labs green research.

New small cell topologies could drastically reduce the power necessary to run mobile data networks since smaller the cell radiuses require less power necessary to maintain a connection, Klein said. Those networks would have to be managed much differently than cellular systems are today, however, with cells automatically shutting off and turning on to meet the real-time capacity demands of subscribers.

“We’re talking about adjusting the resources of the networks on the microscopic level,” Klein said. “We can create a power profile for the equipment that’s much more proportional to its use.” Basically, carriers have to commit to running only as much network as need at any given moment.

GreenTouch is also recommending infrastructure sharing, which would require operators to virtualize their own networks a common set of base stations, towers antennas and core routers. On the wireline side, GreenTouch has developed a new technique for delivering fiber connections to homes called bit-interleaved passive optical networking (BIPON), which reduces the energy required to deliver high-speed broadband by a factor of 30.

Thierry Van Landegem

GreenTouch said if fully implemented, the recommendations would meet its 1,000x improvement goal on wireless network, but would only get about halfway to the same milestone on wireline networks. But GreenTouch Chairman Thierry Van Landegem claimed that taken together these recommendations could reduce the operational energy consumption of all of today’s communications networks by a staggering 90 percent by 2020.

In an interview I pressed Van Landegem on that number, but he insisted he wasn’t talking about a 90 percent efficiency improvement but actually cutting the energy consumed by all the world’s communications networks to one tenth of 2010’s levels. That’s even accounting for the facts that many more networks will be built, billions more people will have access to those networks, and average mobile and wireline data consumption will skyrocket in 2020, Van Landegem said.

If GreenTouch can live up to that promise — and if the mobile industry follows its recommendations — such an energy reduction truly would be an impressive feat. And Van Landegem said GreenTouch is just getting started: “Reducing energy by 90 percent is conservative as we have many projects underway whose effects were not taken into account in that number.”

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Evolution of the home energy market

That Nest and Opower have emerged as the leading companies fighting over this business says something about the small and slow-moving industry. Over the years the market for devices, websites and services that attempt to get consumers to reduce their energy use — a largely unsexy and unappreciated task — has been riddled with struggling startups and failed clunky product launches.

Home energy dashboards never made a dent with consumers. Various startups from Tendril to EnergyHub realized early on that high-end energy dasboards were not the way to go. People don’t care enough about energy and didn’t want to spend money on an energy-specific device.

At the same time, residential-focused energy efficiency services from utilities have taken years to roll out in any meaningful way. Utilities are notoriously slow moving and cautious. Companies that tried to work in these markets got frustrated, too. Google and Microsoft both shut down their energy efficiency web tools after failing to gain much interest or develop any partnerships.

Opower’s entrance

When Opower launched almost six years ago, it found early success with an energy efficiency product that provided immediate value to utilities: mailed energy reports. While Opower has always been an energy software and data company, it were these mailed reports that were initially valuable to utilities that (particularly back then) had unsophisticated digital presences.

Honeywell & Opower’s iPad smart thermostat app

The Opower reports came in envelopes that looked like bills (so were almost always opened) and they used behavioral techniques (smiley faces, peer competition) to gently convince the utility customer to reduce consumption. The mailed reports were also relatively inexpensive compared to home energy devices and dashboards.

But over the years Opower has had to morph into a company that largely sells digital energy data products to utilities. There’s only so much business — and so much effect on consumer behavior — that paper reports can have.

Opower now largely interacts with utility customers through email, text messages, and websites. Its newer digital products include a Facebook app and more recently software for connected thermostats, in partnership with thermostat giant Honeywell.

Opower’s work with Honeywell and its connected thermostat product was one of the first indicators of how competitive Opower and Nest could become. The thermostat has emerged as the great hope for creating a gateway into home energy efficiency following the demise of the energy dashboard. In addition, Honeywell saw Nest as a pretty direct threat, having previously sued Nest over patent infringement around the learning thermostat.

It’s unclear how much success the Honeywell/Opower thermostat is having, given that it’s such a new product. PG&E was the first utility that piloted it and some early results suggested that customers liked using the smart thermostats and particularly liked being able to remotely control the thermostat using their iPhone.

But one of the key differences between Opower and Nest’s business models is clear through that partnership. Opower’s utility products are almost always white-labelled for utilities, so, for example, if it creates a website and system of emails and texts for PG&E customers, then Opower’s alerts are branded with PG&E’s logo. In contrast, Nest has long been focused on selling directly to consumers and building a consumer brand.

Nest emerges

Nest was officially launched toward the end of 2011, though the company had been building its technology for a year and half before that. Its core business philosophy involves the production of a well-designed thermostat that users would covet and that could also collect data about the user and learn their behavior. The thermostat can use that knowledge to shave off between 20 and 30 percent of the user’s monthly heating and cooling, and Nest has mostly focused on selling the thermostat directly to consumers.

But Nest has more recently started to move into offering utilities and energy service providers energy efficiency services. Last month Nest launched a variety of energy services, including demand response, and also this week acquired a startup, MyEnergy, that aggregates and analyzes utility data. It’s clear that one of the most important aspects of the Nest thermostat is the services that can be run based on both the consumer’s individual and the collective Nest users’ data.

Nest appears to want to maintain its brand and its ability to connect directly with customers. When it launched its energy services last month, the company told me that its services sit between the consumer and the utility. It also approves eligible customers and monitors how the services are performing and how the customers are reacting.

This direct-to-consumer approach could also prove useful if (and when) Nest launched any more connected home products in the future.

Power in the data

Essentially, both Nest and Opower are cloud-based data analytics companies that are using various — and increasingly competitive — ways to access home energy data. Nest calls its cloud-based big data algorithms Auto-Tune, and the data that is collected is from its increasingly large amount of thermostats being installed throughout the world.

Opower has built out its big data platform, Opower 4, which collects data from at least 75 utilities, processes data from more than 50 million homes, and has 15 million homes fully connected into the Opower platform. Opower is analyzing 16 percent of all of the smart meters in the U.S.

Each company’s approach has unique benefits and hurdles. Opower has been widely successful with utilities using the approach of starting out with a basic data analytics service, and adding on more complexity and control over time. Utilities are hard customers to win over, so the benefits of winning their business early is invaluable. Nest, with its direct to consumer approach, could be slightly threatening to some of the more conservative utilities.

Nest, on the other hand, has the capacity to build a consumer brand that can make money from direct consumer electronics sales as well as working with energy service providers. Opower has little consumer brand presence and mostly subverts its brand to its utility customers.

Which method will prove more successful over time? It’ll be interesting to see, but in reality there will be room for both. It’s also refreshing to see different types of innovation and execution in the home energy efficiency space — an industry that has been neglected for quite a long time.

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The social-networking giant is giving the general public access to near-real-time dashboards on PUE and another key measurement, water-usage effectiveness (WUE), alongside humidity and temperature data for its data centers in Prineville and in Forest City, N.C. Previously, the PUE and WUE figures were released quarterly. The new dashboards show data down to the minute, albeit with a two and a half hour lag. In the future, Facebook will also post a PUE and WUE dashboard for the data center it’s building in Luleå, Sweden.

The facilities are still under construction, and, as a result, the data in the two dashboards can have abnormalities, but it should become more stable over time. The company detailed its plans in a Thursday blog post on the Open Compute Project site.

Facebook’s Power Usage Efficiency (PUE) and Water Usage Efficiency (WUE) dashboard

Facebook’s Power Use Efficiency (PUE) and Water Use Efficiency (WUE) dashboard

To prod other companies operating data centers to share more up-to-date power- and water-usage data, Facebook will open-source the code for the dashboards. Similar data from other companies could make Facebook look good, as Facebook (along with Google) is on the leading edge when it comes to PUE. A self-benchmarking guide on high-tech buildings from the Lawrence Berkeley National Laboratory puts the standard data-center PUE at 2.0, a good one at 1.4 and a better one at 1.1. The PUE at Facebook’s data center in Prineville fluctuated between 1.06 and 1.08 on Thursday, and at the Forest City data center the PUE was between 1.08 and 1.1.

eBay, for its part, has released a dashboard showing PUE and WUE as well as other measurements, such as the number of checkout transactions per kilowatt-hour.

Innovations in hardware and software at Facebook’s data centers make lower energy use possible. Whether Facebook will be able to squeeze even more computing power out of its energy and water consumption is an interesting question, and now that more current data is being shared, it’s worth asking what innovations will come in the future. If Yahoo, Microsoft and others follow suit, the pressure will be on for data centers across the board to become more transparent. Those efforts could help data center operators respond to notions that data centers waste energy.

This post was updated at 5:24 p.m. to include federal benchmarking figures for power-usage efficiency (PUE) and current Facebook figures.

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A: McDipper, a Facebook-built implementation of the popular memcached key-value store designed to run on flash memory rather than pricier DRAM.

Memcached, for the unfamiliar, is an open-source key-value store that caches frequently accessed data in memory so applications can access and serve it faster than if it were stored on hard disks. It’s a very popular component of many web applications stacks, including at Facebook where the company runs thousands of memcached servers to power its various applications.

But DRAM is expensive, especially when you get to Facebook’s scale, and not all applications deserve that kind of performance. So, according to a Facebook Engineering post on Tuesday, the company designed McDipper to handle “working sets that had very large footprints but moderate to low request rates. … Compared with memory, flash provides up to 20 times the capacity per server and still supports tens of thousands of operations per second.”

Facebook has deployed McDipper for a handful of these workloads, the blog states, and has “reduced the total number of deployed servers in some pools by as much as 90% while still delivering more than 90% of get responses with sub-millisecond latencies.” It has been part of Facebook’s photo infrastructure for about a year and serves 150 gigabits of data per second — or “about one library of congress (10 TB) every 10 minutes” — over Facebook’s content-delivery network.

How McDipper stores data

This is the same logic that drove Facebook to undertake its cold storage engineering effort for even more infrequently accessed data, which aims to find a middle ground between the inefficiency and latency of hard disks and the high cost of flash storage. To meet that goal, the company is getting creative by considering everything from lower-performance flash to Blu-ray — pretty much anything but tape — VP of Engineering Jay Parikh told me in January.

Building a tool like McDipper is the just the tip of the iceberg, though, when it comes to managing the cost and efficiency of infrastructure at large web companies such as Facebook. On Tuesday, eBay released its Digital Service Efficiency report that lays out a methodology for assessing the effect that infrastructure (more than 52,000 servers in eBay’s case; Facebook has even more) has on larger corporate goals such as clean energy and the bottom line.

And later this month at our Structure: Data conference, data center executives from Facebook, Microsoft and Goldman Sachs will take the stage to discuss how smart analytics help them plan to meet capacity needs while keeping costs in check.

Feature image is Facebook’s new all-flash Dragonstone server design.

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Dean Nelson, eBay’s vice president of Global Foundation Services, says the effort, called the Digital Service Efficiency report, “is the miles per gallon measure for technical infrastructure for eBay.” Essentially, the company has boiled its business down to a single currency — transactions (specifically URL requests) associated with users’ buying and selling on the site — and created a slew of metrics that measure how efficiently it delivers those transactions in terms of revenue, performance, cost and carbon footprint.

The project has been about 18 months in the making, Nelson told me during a recent phone call, and eBay was finally able to set a baseline measurement of its performance in 2012. Now that it knows what’s in place and how its infrastructure performs over the course of a year, the goal in 2013 is to cut its computing-related carbon usage and costs by 10 percent and increase performance in terms of transactions per kilowatt-hour by 10 percent.

In order to meet these goals, he said, every member of the technical team — from facilities managers to software engineers — has be striving toward them and also be cognizant of how turning their “knobs” will affect the other metrics eBay is measuring. “Think of it like a Rubik’s cube,” Nelson explained. “You can solve one side but screw up the rest of them.”

eBay plans to release quarterly updates on its progress along with its earnings reports, but employees will have access to down-to-the-second visibility into what’s going on. “It makes it personal for them,” Nelson said. “They can see what their efforts mean.”

52,075 servers doing a lot of work

Nelson offered some pretty compelling examples of how the Digital Service Efficiency project works in practice. If the goal is to decrease cost per transactions, data center engineers might try to minimize power usage at the facility level while server engineers might look to lower-power gear or better utilization on existing gear. They essentially reduce the denominator in that equation “and the net result is we should make more money from those transactions,” he said.

In one real-world instance, a software engineer tweaked some code that affected how much memory an application requires and the company was able to eliminate 400 servers. That cut energy usage by 1 megawatt and a $2 million savings in capital expense when the time would have come to refresh those servers.

eBay also has created a “list of fame” and a “list of shame” that highlight the 1,000 best- and worst-utilized servers within the company. “We have a hit list,” Nelson said, and it’s going to examine the bottom 20 percent to figure out why they’re as wasteful as they are.

However, he added, it’s important to remember on the server front that improving cost, performance and carbon usage doesn’t always mean buying lower-power gear. If eBay can improve the power density of its racks using technology such as liquid cooling — something its Project Mercury data center in Phoenix is pre-equipped for — it can handle more transactions on less gear. It already has some racks running at a sustained rate of 35 kilowatts and thinks it can push that up to 50 kilowatts, Nelson said.

Clean transactions with solar panels and Bloom boxes

On the carbon front, eBay has nothing but an open field in front of it thanks to some big clean-energy projects set to go live in 2013 in its new Salt Lake City, Utah, data center called Project Topaz. For starters, it’s using Bloom Energy boxes as the primary power source, which mean a slightly higher cost per transaction, but also a 13 percent reduction in carbon emissions and increased reliability (downtime costs eBay a lot of money).

Also, the company has finally cleared some regulatory hurdles to tie an on-site solar array back to the grid. Because of changes to a Utah law that eBay lobbied for, it’s about to start sourcing off-site clean energy for its data centers, as well.

“That is a corporate priority,” Nelson said. “We want to create the cleanest commerce engine on the freakin’ planet.”

Trying to change an industry

Of course, the Digital Service Efficiency methodology isn’t the only attempt by a major data center operator to show the world how efficient it is. Google publishes annual Power Utilization Efficiency (PUE) ratings for its data centers, and Facebook occasionally does as well. On Monday, Salesforce.com released a statement underscoring its commitment to sourcing renewable energy.

However, Nelson pointed out, what eBay is doing — and encouraging others to do — is more transparent in that it gives a lot more depth about operations, including the company’s server count. Even if companies don’t publish their results, tying operational efficiency to other business objectives should have a positive effect on the bottom line and the environment, regardless. Every company will have its own base currency, Nelson explained, and they’ll have to find their own metrics to measure and figure out what are the knobs that each part of the company can turn to meet goals.

“We all have the same challenges, the same things to solve for, but we have numerous ways to solve it,” Nelson said. …”[Their implementations] may change completely, but the point is the conversation is starting.”

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