Overview
Problem
Provides AI-driven optimisation solutions to enhance data centre efficiency and sustainability.
By 2030, data centres are expected to consume an average of ~3% of EU electricity consumption, and countries such as Ireland, it is expected to reach almost a third of electricity consumption. In 2022, data centre electricity consumption was ~1% of total EU consumption, demonstrating the significant growth expected in data centre power capacity, primarily driven by the acceleration of AI development. Regions such as London, Northern Virginia, and Frankfurt, are already under significant grid constraint, hence, imminent solutions are required to mitigate the effects of the increasing power demand of data centre operations, which is expected to further weigh on grid infrastructure and data centre operational costs.
Solution
Coolgradient leverages an AI software solution trained on billions of data points, aimed at optimising data centres, by enabling energy and water consumption efficiency. Coolgradient’s solution monitors the entire data centre ecosystem from both a portfolio view or based on an individual asset, identifying efficiencies and providing automated recommendations in a “single plane of glass”. Achieving up to 20% and 25% energy and water savings, respectively, Coolgradient’s software can significantly reduce operational costs and infrastructure downtime, energy and water demands, while improving sustainability metrics. The seamless integration with onboarding facilities (no additional hardware required), fast ROI, facilitating the collaboration of cooling systems, and automated compliance reporting, distinguishes Coolgradients product in the market.
Market
As of December 2023, there were roughly ~11,000 data centres globally, concentrated mainly in North America, Europe, and Southeast Asia. Assuming an average electricity price of £7.40/kW per day in the UK, the annual electricity cost for a 50MW assuming an 80% power rating, is ~£108 million. Hence, with a energy cost saving of 20% through Coolgradient’s software, this saves £27 million annually in energy costs for a 50MW data centre. With over 1,280 data centres in Europe, 100 TWh of annual data centre energy consumption, and an average retail electricity price of $0.29/kWh (European average), this presents an attractive market size (energy) of £29 billion in Europe alone. Based on 20% energy savings, this generates a £5.8 billion addressable market for Coolgradient. Market reports has estimated the global data centre solutions market size at £75 billion with North America making up over a third of the revenue (36%).
Founders
Founded in 2023 by René Gompel and Jasper de Vries, the pair of CEO co-founders previously worked together for several years at ViaConnect Group, a consultancy aimed at using AI to create more sustainable data centres. Jasper has extensive experience in machine learning and data driven solutions, and previously founded an AI edtech company. René has over 20 years of experience in director and partner roles, demonstrating leadership and governance capabilities. Their combined business acumen, leadership, and technical skills are extensive and are well equipped to take the startup towards scalability.
René Gompel
Co-founder
Jasper de Vries
Co-founder
Summary
The data centre market is poised for significant growth to meet the demand for AI workloads, positioning Coolgradient in the driver’s seat in a fast-growing market, providing a solution to reduce operational costs for data centre operators and grid constraints. Operational costs for data centres are colossal, hence, 20% cost savings has a significant effect on company margins, and indirectly reduces the effect on the grid infrastructure through reduced energy usage. Due to this, the ROI period will be likely to be short which should reduce sales cycle and drive user adoption, enabling revenue growth.
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