We have large customers today whose storage purchase decisions were driven by energy and floor space considerations. When Meta, the parent company of Facebook, announced in December 2021 that they had awarded a 100 petabyte-plus storage infrastructure deal for their Artificial Intelligence Research Super Cluster (AI RSC) to Pure Storage, they noted that our solution had an 80% lower total cost of ownership (TCO) than alternatives. Our lower TCO was primarily due to our storage infrastructure efficiency which translated directly to fewer hardware components that consumed significantly less power and floor space. Pure Storage customers routinely achieve energy savings of this magnitude. Admiral, a car insurance provider in the UK, reduced their storage floor space by 80% and cut power and cooling costs by 74% by moving to Pure Storage.
Barfoot & Thompson, New Zealand's largest privately held real estate agency, reduced their rack space by 75% and their power consumption by 80%. EV Group, a semiconductor manufacturer in Austria, reduced their storage energy consumption by 85%. St. Joseph's Health, a New Jersey-based healthcare provider, reduced their floorspace consumption by 75%. Northwest Independent School District in Fort Worth, Texas, reduced their rack space consumption by 75%. San Luis Obispo County, one of California's original counties, reduced their storage floor space by 75% and their power consumption by 59%. One of the world's largest banks based in Germany achieved an 88% reduction in energy usage and a 94% reduction in rack space consumption. These are just a few examples of the efficiencies enjoyed by Pure Storage customers.
The massive savings associated with improved storage infrastructure efficiencies have a transformative impact on overall costs. With our storage densities, we need far fewer devices to meet a given performance and capacity requirement, and that means we need significantly less supporting infrastructure (controllers, enclosures, fans, power supplies, cables, switches, etc.). Not only do we take up less floor space for an initial system--we take up less floor space to accommodate expansion. With our significantly smaller kit we also generate less heat than competitors, helping to lower cooling costs. Bringing a Pure Storage system in on technology refresh will free up data centre floor space to provide more room for future expansion. With our storage densities today, and the lower capacity of COTS SSDs that our competitors must deploy to hit the same performance and capacity targets, we routinely take up 80% less rack space than our competitors.
For enterprises with only a petabyte (PB) or so of data overall, rack space savings of 80% may not translate to similar floor space savings. But many enterprises already have many PBs of data and are actively looking at how they will support tens of PBs in the near future. And that 80% rack space savings translates to significant floor space savings for enterprises managing a lot of data. Data centers house all types of IT infrastructure--not just storage--and all of that consumes energy and rack space as well. As IT managers look at scaling that infrastructure over time, it's not a matter of if they must consider data centre floor space and power budgets--it's a matter of when.
How close are you to running out of data centre floor space? If and when the limit of your existing data centers is reached it can force some uncomfortable decisions. Expanding beyond the floor space of existing facilities may be as easy as moving some workloads to the cloud and/or retiring others to make room for more critical workloads. But if neither of these options are feasible or they cannot clear enough space for critical new projects, then it is a very expensive step-function to acquire new data centre capacity. Most enterprises will not be able to add new incremental data centre capacity very easily due to the expense.
As power consumption has significantly increased worldwide, many data centers are facing looming power grid limitations to further expansion as well. IDC, a well-known technology analyst firm, released a survey in early 2022 that showed that in North America in 2021, 25% of IT organisations had experienced delays in IT deployments due to power or space constraints5. In late 2021, Loudoun County in northern Virginia (home of the world's largest concentration of data centers), limited new data centre construction due to power grid limitations6. In Dublin, Ireland, EirGrid (the state-owned electricity operator for that region) said no new data centre applications were expected to be granted a grid connection before 2028, impacting hyperscaler (AWS, Azure, Facebook, Equinix) expansion plans7. In 2022, the city-state of Singapore limited data centre expansion to a 60 megawatt increase per year going forward. In the Meta AI RSC deployment mentioned above, power grid limitations in New York City disqualified their first IT infrastructure approach and forced them to go in a new, Pure Storage-based direction that was much more efficient in terms of both energy and floor space consumption.