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Demonstration Project on an Energy-Efficient Data Center in the Lao People's Democratic Republic
-Aiming to Reduce Power Consumption by 40% Compared to Conventional Data Centers-

November 30, 2016
New Energy and Industrial Technology Development Organization (NEDO)

NEDO has completed the installation of a data center in Vientiane, the Lao People's Democratic Republic for a demonstration project on an energy-efficient data center.

The data center is composed of containers which take one-third of the time from design to install, and it will reduce power consumption by 40% compared to conventional data centers.

In the project, the data center will be operated for one year until February 2018, and the reduction of greenhouse gas (GHG) emissions will be verified under the Joint Crediting Mechanism (JCM).

View of the container-type data center

1. Overview

On January 26, 2016, NEDO signed a memorandum of understanding (MOU) with the Ministry of Science and Technology of the Lao People's Democratic Republic (PDR) for the JCM*1 Demonstration and Verification Project for Lao PDR Energy Efficient Datacenter (LEED). Based on the MOU, installation of a high-quality, high-efficiency container-type data center was completed in the Lao PDR.

The data center introduced in this project is the first fully-developed, government-managed data center in the country, and it takes one-third of the time from design to installation compared to conventional data centers because each component is pre-installed and wired prior to being transported. In addition, all containers have an indirect outside air cooling mechanism*2 which cools exhaust heat from information technology (IT) equipment by exchanging the heat with outside air. Utilizing heat-resistant servers in the data center also reduces power consumption, especially in the summer when a large amount of power is required for cooling. As a result, the data center will cut power consumption by 40% compared to conventional data centers.

The project will be carried out with the aim of registering it as a JCM project. The effectiveness of the data center will be demonstrated through measuring, reporting, and verifying the reduction of GHG emissions under the JCM. This is expected to help promote the data center and facilitate activities to reduce GHG emissions in the Lao PDR. After commissioning starting in December of this year, the data center will begin full-scale operation that will include the use of Web services, file-sharing services, and others. Operation will continue for one year until February 2018.

Through the implementation of the project and dissemination of the technology, NEDO aims to reduce GHG emissions in the IT field in the Lao PDR and further stimulate industrial activities by improving the information infrastructure.

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    Indirect outside air cooling mechanism

2. Opening Ceremony

Following the completion of the data center installation, an opening ceremony was held on November 29, 2016, in Vientiane. Mr. Munehiko Tsuchiya, Executive Director of NEDO; Mr. Takeshi Hikihara, Ambassador Extraordinary and Plenipotentiary of Japan to the Lao PDR; Mr. Soichiro Matsudaira, Senior Managing Director of Toyota Tsusho Corporation; Mr. Hideshi Hojo, Senior Managing Director of Internet Initiative Japan Inc.; and Mr. Masahiro Kameda, Executive Officer of Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. attended the ceremony as representatives of the Japanese side. Dr. Boviengkham Vongdara, Minister of Science and Technology; Mr. Houmphanh Intharath, Vice Minister of Science and Technology; and Mr. Keonakhone Saysuliane, Director General, Information Technology Department, Ministry of Science and Technology also attended the ceremony as representatives of the Laotian side.


*1 JCM (Joint Crediting Mechanism)
The JCM offers a means of achieving Japan's reduction targets by quantitatively evaluating Japan's contribution to GHG emission reductions and removal through efforts to facilitate the spread of GHG reduction technologies, products, systems, services, and infrastructure to developing countries, as well as promoting associated measures. Three ministries, the Ministry of Foreign Affairs; the Ministry of Economy, Trade and Industry; and the Ministry of the Environment, have been advancing the bilateral meetings with countries interested in the JCM. Japan has established the JCM with 16 countries (Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, Lao PDR, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar, and Thailand) as of November 2016.
*2 Indirect outside air cooling mechanism
The mechanism uses outdoor air indirectly through heat exchangers, minimizing the use of a compressor and chillers.

3.For more information, please contact:

NEDO International Affairs Department, Global Environment Technology Promotion Division
Contact parsons: Kobayashi, Toyama Tel: +81-44-520-5185­ E-mail:askJCM@ml.nedo.go.jp

NEDO Energy Conservation Technology Department
Contact parsons: Miyazaki, Ueno Tel: +81-44-520-5284­