EvoBits IT: Reshaping Data Centre Infrastructure in Eastern
The rapid advancement of AI applications has created unprecedented demand for specialised computing infrastructure across Europe.
With well-established data centre hubs across the FLAP-D market (Frankfurt, London, Amsterdam, Paris and Dublin), which only continue to expand, the next wave of AI infrastructure development is starting to emerge in other locations across Europe, including Romania.
The country is committed to expanding its digital infrastructure and connectivity capabilities, with its power availability and skilled technical workforce providing ample opportunities for growth. Capitalising on this growing trend is EvoBits IT, a company that is currently managing over 900 AI servers to meet growing demand for AI.
EvoBits IT has been on quite a journey since it was first founded and now seeks to provide the essential infrastructure for businesses to power ahead in the digital transformation revolution.
From crypto to AI: A strategic evolution
EvoBits’ path towards the data centre market has been marked by calculated shifts in its business focus. First founded in 2014 as a software development firm, EvoBits IT first started engaging with data centres during the cryptocurrency mining boom of 2017.
“We started initially as a programming company, focusing solely on software development for the first few years. Then we moved into the data centre business, starting with hosting during the cryptocurrency boom in 2017-2018,” says Silviu Balaci, founder and IT consultant at EvoBits IT. “Between 2020 and 2021, we moved completely to the data centre business. Starting in 2020, we stopped all external software development services. We're no longer doing software development except in extremely rare cases when clients specifically request it.”
In 2021, Silviu sold his shares but remained with the company as a consultant in a role equivalent to Chief Technology Officer, managing business direction and technical strategy. This restructuring ultimately positioned the company for its next phase of growth in the AI infrastructure market.
Such a deliberate strategic move coincided with growing demand from AI startups seeking managed infrastructure services. More data centre power is required to support business demand for emerging technologies like AI and cloud computing, which has caused the market – particularly in Europe – to swell.
An early client of EvoBits IT after this strategic rebrand was Stability AI, an organisation responsible for AI image generation technology.
The company’s approach to hardware deployment now differs from standard industry practice. While purchasing pre-built servers for high-end requirements, EvoBits IT assembles many AI servers in-house and also incorporates desktop-level central processing units (CPUs) for enhanced single-core performance that can take place throughout the data centre. To overcome the main disadvantages of using desktop-level CPUs, this assembly involves custom power distribution boards and PCIe switches, components that manage power delivery and data transfer between computer parts.
“To become competitive with the bigger companies, we had to do something different,” explains Silviu. “For the high-end servers that cost hundreds of thousands of dollars, we still purchase those, but for smaller AI servers, we actually assemble them ourselves.”
This infrastructure supports a concentrated client base, as EvoBits IT currently has fewer than 10 clients. However, it has managed to generate a turnover of approximately €7 million (US$7.29m) over the last year.
Able to maintain its clear focus on data centre infrastructure, the company is looking to expand its facilities, which include a new two-megawatt (2MW) Tier III certified data centre and an 18MW modular liquid-cooled data centre.
Keeping AI cool
The technical requirements for AI computing have also prompted innovations in cooling system design. For EvoBits IT, its experience in cryptocurrency mining operations has proved valuable in this task, as the company is successful in managing high-density computing environments.
“We discovered that traditional data centre design standards don't fully apply to AI systems. Typically, you’d calculate cooling based on thermal units that need dissipation, with a standard ratio of airflow per thermal unit,” Silviu explains. “With AI systems, the required airflow is significantly higher than what thermal dissipation calculations would suggest.”
The company’s current facility implements strict airflow management protocols, including aisle containment systems that separate hot and cold air paths. These systems are informed plans for the new facility, having shaped the design of smaller server clusters with both hot aisle containment and raised floor cold aisle containment – systems that direct cool air to equipment and remove heated air efficiently.
EvoBits IT also employs indirect evaporative cooling, a system that uses water evaporation to remove heat without mixing outside air with the data centre's internal environment. This is able to achieve a Power Usage Effectiveness (PUE) ratio below 1.15, meaning overhead energy consumption adds less than 15% to computing power consumption.
The company has proposed a modular 18MW facility which would be developed with help from global chipmaking leader Nvidia. Liquid cooling technology would be incorporated into the data centre’s design and support between 150 and 200 kilowatts (KW) per rack. This power density exceeds typical air-cooled systems, which handle 5-15KW per rack and the facility would be built to Nvidia’s specifications for its world-leading GB200 and future graphics processing unit (GPU) models.
“Working with Nvidia on their future needs has been a huge confidence boost – having them reach out to us about our new data centre was incredible,” Silviu says.
However, infrastructure development at this scale can be challenging depending on the region. Geographical challenges have required EvoBits IT to establish transport lines with points of presence in Bucharest and multiple dedicated 100-gigabit connections. Part of these plans include establishing a direct point of presence (PoP) in Frankfurt, Germany in H1 2024.
“Finding available power essentially determines our location options,” Silviu notes. The company evaluates two potential locations: one near its current main office and another in an industrial park 15 kilometres away, with the industrial park selected for immediate power availability.
The company's position north of the Carpathian mountains in its home city of Cluj-Napoca meant that it also needed to invest greatly in fibre optic infrastructure to bolster its ability to connect successfully to the rest of Europe.
“We're located in Romania’s second-largest city, but it’s not a popular area for data centres. All major fibre routes go through the southern part of the country, while we're in the central-north region, divided by the Carpathian mountains,” Silviu adds.
“Our location choice isn’t ideal for a data centre connectivity – it’s more of a pride thing. But we love this city, our employees want to continue living here, and we can overcome the disadvantages by building our own infrastructure” Balaci adds.
Keeping your partners close
In order to support its continued growth in the European data centre market, EvoBits IT maintains a strong network of partnerships with three primary suppliers, including Innova Engineering, who support the design and build of EvoBits data centres, whilst also helping to address the specific challenges of AI infrastructure.
“We have worked together since 2017,” Silviu explains. “They’re flexible and willing to consider different approaches, even though they build many traditional data centres that don't face the same challenges we do. They treat us as knowledgeable partners, which isn't always easy to find.”
Likewise, long-term partner and IT giant Supermicro provides EvoBits with server hardware through a relationship strengthened by joint project presentations, whilst IT distributor ASBIS handles component distribution across Eastern and Central Europe.
These close-knit partnerships form part of the core ethos of EvoBits IT.
“As a company, we’ve faced significant challenges, including once coming close to bankruptcy, but we’ve overcome every obstacle and continued growing,” Silviu shares. “What sets us apart is our philosophy of operating more like a family than a company, even with our customers.”
With this in mind, the company provides server demonstrations without charge and maintains flexibility regarding payment terms and bandwidth usage.
“We provide demo servers for free, work with customers when invoices can’t be paid on time, and are flexible with bandwidth overages because our goal is to grow together,” explains Silviu. “During our rough times, our partners showed us the same understanding. For example, Innova Engineering, our data centre construction and maintenance provider suspended payments for six months while still performing all necessary work. That’s why we maintain such close relationships with our providers and clients.”
Keeping a sustainable focus
Looking ahead, EvoBits IT has grand plans to focus on the sustainability of its data centres. As its operations grow across Eastern Europe, Silviu explains the company is eager to prioritise integrating renewable energy.
For instance, the company intends to install solar panels with battery storage systems, which will aim to help it achieve energy independence during the summer months. The battery systems will employ chemistry designed for over 10-year operational lifespans, enabling electricity use from storage during periods of high grid price. This builds on existing efficiency measures that EvoBits IT has in place, including its optimised power infrastructure sizing to reduce transmission and conversion losses.
In the long-term, EvoBits IT is hoping that its investments into infrastructure will put the company at an advantage, particularly given rising energy prices across Europe in the wake of the Covid-19 pandemic.
The company has plans to further expand in Romania and establish facilities in the western region and Bucharest to create what Silviu calls a “triangle” of certified data centres.
“We are doing this for environmental reasons, but also because we look at the next five years rather than just the next quarter,” Silviu explains. “Being a private company, we focus on long-term viability and being sustainable is ultimately also more profitable.”
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