Startup ECL turns to hydrogen to futureproof its data centers

  • ECL has created and deployed an off-grid, hydrogen-powered modular data center
  • Its data centers can currently support rack power levels up to 75 kW, but it is working on a 125 kW design
  • CEO Yuval Bachar said it is in conversations with hyperscale cloud players and "Tier 1" enterprises about deployments

Imagine a data center capable of supporting high-performance computing that requires neither a connection to the electric grid nor an external water source. Sounds like a fantasy, right? Well, that’s exactly what EdgeCloudLink (ECL) has created.

In a world where power, water and sustainability are all critical factors for data centers, Yuval Bachar, founder and CEO of ECL, told Fierce Network the company thinks it has built THE blueprint for a truly sustainable and futureproof data center. The key, he added, is hydrogen.

“We have an opportunity of a generation. The buildout of data centers, which is happening right now, is the biggest buildout that we’ve seen in the last 35, 40 years – and we need to do it right,” Bachar, who has worked for big name tech companies including Microsoft, Facebook, Cisco, Juniper Networks and LinkedIn, said. “If we don’t build them right, right now, then we’re stuck with them for the next 25 years.”

Here’s how ECL’s system works (in drastically oversimplified terms, of course).

ECL uses two different forms of hydrogen for its data centers: gas and liquid. Sites are hooked up to gas pipelines, which in turn feed fuel cells that combine hydrogen and oxygen. A reaction between the two elements occurs on top of a metal plate (aka the substrate) inside the fuel cell, generating electricity, which is used to power the data center.

Interestingly, the byproduct of this process is the creation of water, which ECL then uses to cool its facility and racks via evaporative cooling systems. In fact, Bachar said its system generates so much water, it actually has more than it needs and can supply the excess to whatever community the data center is in.

ECL also captures energy by boiling supercooled liquid hydrogen. This energy is used to power the aforementioned cooling systems.

This loop is incredibly efficient, according to Bachar. While traditional data centers require a 60% power overhead to meet the needs of their cooling systems, Bachar said ECL only requires 6-10%.

In order to ensure its data centers have the kind of reliability and availability customers are looking for, Bachar said it supplements its hydrogen power systems with a megapack battery that can provide an 8 hour maintenance window for the hydrogen systems. It also has generators on site and can even hook into renewable energy sources or the traditional power grid if a customer so chooses.

Introducing Fierce Network TV (FNTV)

From trade show coverage to business social media reels, to short-form documentary series, FNTV sets a new standard for B2B marketing.

Since its facility is so unique, ECL has also built custom software to run its operations. This software actually allows customers to optimize which power sources they use (ie, hydrogen, grid or renewables) based on sustainability and cost goals, Bachar said.

It’s worth noting that ECL is not the only company working to take data centers off the traditional power grid. Crusoe, for instance, has focused on building modular data centers off the grid near oil fields, windmills and natural gas facilities to capture otherwise underutilized energy sources. 

But in Bachar’s eyes, the use of fossil fuel sources kind of defeats the purpose of going off the grid.

“They’re all running on natural gas, which is missing the point. Even if you’re off grid but on natural gas you’re not sustainable because you’re creating emissions,” the CEO said.

“We are doing this because it’s hard,” he added. “If it was easy anyone would do it.”

Grand plans

ECL’s data centers are modular, meaning they come as prepackaged 1 megawatt (MW) units that can be grouped together to provide a total of 100 MW of capacity. Bachar said because they’re off the grid, ECL’s data centers can be delivered in less than 12 months.

ECL data center interior racks

Within the data center, each rack can support between 5 kilowatts (kW) and 75 kW of capacity, with air cooling delivered via a rear-door heat exchanger system. But Bachar told Fierce it is currently developing racks capable of supporting up to 125 kilowatts. These will feature direct-to-chip liquid cooling systems and should be available sometime next year, he said.

The first 1 MW ECL data center has been deployed for Cato Digital in Mountain View California. Bachar told Fierce it plans to announce its first large scale project in the next four to six weeks.

According to Bachar, over the next 12 to 14 months, ECL is aiming to build between 100 and 150 MW of data center space with clients. Looking further out over a three to five year timeframe, its target is more like 500 MW, he added.

Bachar said ECL is deeply engaged with all of the major hyperscale cloud players as well as with what he called “Tier 1 enterprises” who are looking to build 5-25MW of data center space. Think the Nvidias, Teslas, Netflixs and major telcos of the world.

He said it has engaged with some data center operators (aka the likes of Digital Realty, Equinix and Cyrus One), but noted deals with these players are less attractive since they’re technically ECL’s competition.

Cost and profitability

So, what kind of costs are customer looking at to get one of these hydrogen-fueled wonders for themselves?

Bachar didn’t provide an exact figure but noted that it typically costs $12-$14 million to build 1 MW of traditional data center capacity. ECL’s modules cost about 30% to 40% less than that, he said.

Once new modules are lit up, Bachar said they are “profitable on day one.” How is this possible?

According to Bachar, ECL currently runs a lean team. And with its major R&D work in the rearview, revenue from the data centers more than offsets the other investments it is making.

Bachar said ECL began developing its system in March of 2022 and by late 2023 began building the facility it used to test its new tech. It currently has about 20 patents pending, he said.

In theory, ECL could generate additional revenue by licensing out its hydrogen technology. But Bachar said it would consider doing so only for a handful of major customers and certainly not for competitors.

ECL is currently closing a $10 million funding round. Bachar said some of that money already went toward the construction of its pilot facility in Mountain View. The rest, he said, will go toward growing its headcount and developing new innovations to meet its growth goals.

 

UPDATE 6/3/2024 10 am ET: This story has been updated to correct the power overhead figures.