Tag: Mr Ravichandran Purushothaman

Danfoss and Hewlett Packard Enterprise partner to curb data center energy consumption and reuse excess heat

25.06.2024, Chennai: Danfoss and Hewlett Packard Enterprise recently announced their collaboration to deliver HPE IT Sustainability Services – Data Center Heat Recovery, an off-the shelf heat recovery module, helping organizations manage and value excess[1] heat as they transition towards more sustainable IT facilities.

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The rapid integration of AI technologies across organizations and businesses is expected to have a dramatic increase in the power demand and utilization of AI optimized IT infrastructure. According to the International Energy Agency, by 2026 the AI industry is expected to have grown exponentially to consume at least ten times its electricity demand in 2023[2]. To mitigate these challenges, IT leaders and data center facility operators are taking action to reduce energy usage, such as implementing modern power-efficient capabilities and improved cooling systems. Excess heat in the EU alone represents an estimated 2,860 TWh/y, almost equal to the EU’s total energy demand for heat and hot water in residential and service sector buildings[3]. The flow of excess heat from data centers is uninterruptible and therefore constitutes a very reliable source of clean energy.

Mr Ravichandran Purushothaman, President, Danfoss India, said, “Sustainability is at the heart of our partnership with HPE. By harnessing excess heat, we’re not only reducing energy consumption but also creating a reliable source of clean energy. Danfoss’ heat reuse modules will make it possible to capture and reuse heat produced by data centres, providing a renewable energy source to supply heating on site and to neighbouring commercial and residential buildings, communities and industries that need heat for their processes.”

Benefits and agility of modularity
HPE’s MDC incorporates direct liquid cooling (DLC) technologies to enhance energy efficiency by over 20% and optimize energy production and distribution, leading to notable energy savings. The design’s compactness minimizes energy loss by reducing the distance To address these issues, the new energy efficient data center solution from Danfoss & HPE offers:
• Danfoss’ innovative solutions, including heat reuse modules that capture excess heat from data centers to provide renewable heating onsite and to neighboring buildings and industries for various applications, and Turbocor® oil-free compressors that enhance data center cooling efficiency by up to 30%.

• HPE’s scalable Modular Data Center (MDC), in the form of small footprint, high-density (kW/rack) containers, can be deployed nearly anywhere in the total absence of heavy industry and incorporates technologies such as direct liquid cooling, reducing overall energy consumption by 20%.

for energy and cooling fluid transport and maximizes the temperature differential at the inlet and outlet, which promotes the capture of excess heat. Furthermore, the MDC’s agility and the exclusion of heavy industrial materials negate the need for costly, conventional building materials and substantially reduces the time to market. Deployment can be achieved three times quicker than with traditional data centers, decreasing from 18 months to as few as 6 months. Finally, the reduced land footprint and flexibility of the MDCs allow for placement in proximity to data generation sites, which diminishes the energy impact and bottlenecks associated with complex networking solutions and data transfer, while also supporting enhanced data governance and security.

“Our strategic partnership with HPE is a great example of how we revolutionize building and decarbonizing the data center industry together with customers,” said Jürgen Fischer, President, Danfoss Climate Solutions. “With this latest cross-industry partnership we’re building the blueprint for the next generation of sustainable datacenters – using technologies available today”.

With unparalleled density, HPE’s modular data centers offer an impressive power usage effectiveness (PUE) of 1.1 in contrast to the PUE of 1.3 to 1.4 typically associated with the best modern designs of traditional brick-and-mortar data centers. Capable of handling the most power-demanding architectures like HPE Cray Supercomputing EX4000, HPE’s modular data center is the adequate architecture for mission critical and compute intensive workloads like supercomputing and generative AI, enabling scientists, universities, and enterprises to achieve faster outcomes.

“At HPE, we believe in the power of collaboration to create transformative solutions,” said Sue Preston, Vice President & General Manager, WW Advisory & Professional Services & Managed Services, HPE. “Our partnership with Danfoss brings together HPE’s innovative modular data center with Danfoss’ groundbreaking heat reuse technology. Together, we are not just adding value; we are multiplying it. By harnessing the typically untapped resource of waste heat, turning waste into worth, showing the future of energy usage is efficient, intelligent, and, most importantly, achievable now.”

From chip to chiller: Driving innovation in decarbonization
To leverage excess heat – one of the largest untapped sources of energy and the largest potential for data centers across Europe, HPE has partnered up with Danfoss as their decarbonization partner. The strategic partnership takes advantage of Danfoss’ extensive product portfolio of energy-efficient solutions to drive innovation, support decarbonization and build the blueprint for the next generation of sustainable modular data centers.

HPE IT Sustainability Services – Data Center Heat Recovery is inspired by how Danfoss is already using heat reuse technology at its own headquarters campus in Denmark. Here, the heat is recovered from Danfoss’ onsite data center, boosted by a heat pump, and re-used in surrounding buildings to provide space heating. The heat can also be fed into the local district heating network to provide a renewable heat source to local residents. Reusing heat is a major part of Danfoss’ own decarbonization strategy which has helped Danfoss achieve carbon neutrality in the energy system of its 250,000m2 campus in Nordborg in 2022.

The new scalable modular data center offering leverages Danfoss technologies, including Turbocor® compressors for heat pumps and chillers, heat exchangers, heat reuse modules, drives and pump skids allowing data centers to be cooled up to 30% more efficiently while recovering and reusing excess heat. It’s a modular solution with components that work together seamlessly and includes two technology stack options with a heat recovery system, including hydronic heat recovery heat exchanger and water-water heat pump, recovering heat from an air-cooled edge-to-cloud modular data center today and potentially second phase liquid cooled HPC modular data center.

Ms Anju Mary Kuruvilla, Director- Industry Affairs, Communication & Sustainability- Danfoss India, said, “As we navigate the data-driven era, sustainability is crucial for India’s expanding data center industry, which is expected to grow exponentially by 132% to ~10 billion USD by 2027. Danfoss partnering with HPE as part of our holistic “Reduce, Reuse, Resource” approach will help inspire more green data centers in the nation, with circularity and decarbonization embedded in them.”

Danfoss continues the positive development despite increasing headwinds in the global economy

Chennai, 12.03.2024 – With our 2023 results, the positive development of Danfoss continued with bold investments in our green growth strategy, Core & Clear 2025. Despite market headwinds in the second half of the year, Danfoss reported financial results within the range of guidance.

Sales grew 7% in local currency compared to 2022, with the EBITA margin reaching 12.6% in 2023. This is combined with a record-level free operating cash flow after financial items and tax of EUR 692 million, an increase of 49% compared to 2022. EBITA increased 10% to EUR 1,345 million compared to 2022.

Mr Ravichandran Purushothaman, President, Danfoss India, said, “”I am proud to witness our continued positive trajectory amidst global economic headwinds. Our steadfast commitment to innovation and sustainability has enabled us to achieve remarkable results, evident in our 2023 performance with a 7% increase in sales and a significant reduction of 18% in scope 1 and 2 emissions. At Danfoss, we’re joining hands with communities worldwide to recognize the power of energy efficiency in shaping a sustainable future. As we strive towards a greener tomorrow, let’s acknowledge the impact of our collective efforts in conserving energy, reducing emissions, and mitigating climate change. With our clear roadmap to decarbonize operations by 2030, including strategic agreements in key markets like China and North America, we are poised to further elevate our impact and drive sustainable growth in the Indian market and beyond. At Danfoss, we have the expertise and technology already to take action on decarbonization through energy efficiency. Using the three-step process, we can achieve rapid and cost-efficient decarbonization, reduce energy consumption and waste, reuse energy through energy recovery and sector coupling, and resource energy with renewables.”

“We are entering a new era where the future energy system is electric, and improving energy efficiency in machines, infrastructure, and industry is critical to delivering an affordable, secure, and decarbonized future. In 2023, we continued with bold investments in expanding our offering of competitive and innovative solutions for our core business and high-growth opportunities like data centers, the electrification of heating systems, EVs, on- and off-highway vehicles, as well as marine vessels, and hydrogen production,” says Kim Fausing, President & CEO of Danfoss.

Besides the significant investments in our core business and new high-growth opportunities, we continued to invest in building a more resilient supply chain by further regionalization and adding new capacity.

In 2023, the integration of our recent acquisitions continued to be on track.

With the acquisition of Eaton’s hydraulics business in 2021, we built a leading position within mobile and industrial hydraulics. We are targeting a leading position in power semiconductor modules and assemblies with Semikron Danfoss, established in 2022. With the acquisition of BOCK® Compressors in 2023, Danfoss now offers one of the most comprehensive compressor portfolios in the cooling industry.

“During the second half of 2023, high inflation and interest rates impacted the market. The more challenging business environment has continued into 2024, but we remain focused on implementing our green growth strategy and delivering strong value to our customers and partners around the world,” says Kim Fausing, President & CEO of Danfoss.

Danfoss has a clear plan to decarbonize operations by 2030, and we already have agreements in place that ensure a 30% reduction in emissions. These agreements include two long-term power purchase agreements in China and North America, effective from 2024 and 2025, respectively. In 2023, we continued to decarbonize our own operations. Scope 1 and 2 emissions decreased by 18% (before acquisitions), decoupled from organic sales growth of 2%.

“I am excited to see how our global teams continued to implement our green growth strategy and at the same time decouple our organic growth from our own emissions,” says Kim Fausing.

Financial outlook 2024

Danfoss has a continued ambition to expand or maintain market share. Sales are expected to be in the range of EUR 10.0-11.5 billion for the full year. The EBITA margin is expected to be in the range of 11.8-13.3%, following the continued integration of already-acquired businesses as well as investments in the development of new products and solutions. The expected growth and profitability performance is dependent on the development of global supply chain stability, the geopolitical environment, and inflation, as well as general global growth rates.

Key figures for 2023

  • Sales in 2023 up 7% in local currency and 4% reported to EUR 10.7bn (2022: 10.3bn).
  • Scope 1 and 2 emissions decreased 18%, adjusted for the acquisition of Semikron and BOCK® Compressors.
  • Investments in innovation (R&D) increased 7% to EUR 487m (2022: 457m), corresponding to 4.6% of sales (2022: 4.5%).
  • Investments (CapEx) excluding M&A increased 12% to EUR 596 million (2022: 531m).
  • Operating profit (EBITA) increased 10% to EUR 1,345 million (2022: 1,224m), leading to an EBITA margin of 12.6% (2022: 11.9%).
  • Net profit increased 20% to EUR 819 million (2022: 683m).
  • Free operating cash flow (after financial items and tax) amounted to EUR 692 million (2022: 465m).
  • Lost Time Injury Frequency (LTIF) at record low 1.2 (2022: 1.6).
  • 42,054 employees (2022: 41,928).