Key Takeaway
The rapid growth of AI applications is driving demand for specialized computing infrastructure in Europe, with EvoBits IT emerging as a key player. Based in Romania, the company has transitioned from software development to managing over 900 AI servers, capitalizing on the need for AI infrastructure. EvoBits focuses on assembling many of its servers in-house and employs innovative cooling systems tailored for AI workloads. With plans for a new modular data center and a commitment to sustainability through renewable energy, EvoBits aims to expand its facilities while maintaining strong partnerships and a family-like company culture.
The rapid advancement of AI applications has led to an unprecedented demand for specialized computing infrastructure throughout Europe.
With established data center hubs in the FLAP-D market (Frankfurt, London, Amsterdam, Paris, and Dublin) that continue to grow, the next wave of AI infrastructure development is emerging in other parts of Europe, including Romania.
The country is dedicated to enhancing its digital infrastructure and connectivity capabilities, with its power availability and skilled technical workforce offering significant opportunities for growth. EvoBits IT is poised to capitalize on this trend, currently managing over 900 AI servers to meet the increasing demand for AI.
Since its inception, EvoBits IT has undergone a remarkable transformation, now aiming to provide the essential infrastructure that enables businesses to thrive in the digital transformation revolution.
From crypto to AI: A strategic evolution
EvoBits’ journey into the data center market has been characterized by strategic shifts in its business focus. Founded in 2014 as a software development firm, EvoBits IT began engaging with data centers during the cryptocurrency mining boom of 2017.
“Initially, we operated solely as a programming company, concentrating on software development for the first few years. Then we transitioned into the data center business, starting with hosting during the cryptocurrency boom in 2017-2018,” says Silviu Balaci, founder and IT consultant at EvoBits IT. “By 2020, we fully transitioned to the data center business, halting all external software development services. We no longer engage in software development except in rare cases when clients specifically request it.”
In 2021, Silviu sold his shares but remained with the company as a consultant in a role akin to Chief Technology Officer, overseeing business direction and technical strategy. This restructuring ultimately positioned the company for its next growth phase in the AI infrastructure market.
This deliberate strategic shift coincided with rising demand from AI startups seeking managed infrastructure services. Increased data center power is essential to support the business demand for emerging technologies like AI and cloud computing, causing the market—especially in Europe—to expand.
An early client following this strategic rebranding was Stability AI, an organization known for its AI image generation technology.
The company’s approach to hardware deployment now diverges from standard industry practices. While it purchases pre-built servers for high-end requirements, EvoBits IT assembles many AI servers in-house and incorporates desktop-level central processing units (CPUs) for improved single-core performance throughout the data center. To mitigate the main drawbacks of using desktop-level CPUs, this assembly includes custom power distribution boards and PCIe switches, which manage power delivery and data transfer between components.
This infrastructure supports a focused client base, as EvoBits IT currently serves fewer than 10 clients. Nevertheless, it has generated a turnover of approximately €7 million (US$7.29m) over the past year.
By maintaining a clear focus on data center infrastructure, the company is looking to expand its facilities, which include a new two-megawatt (2MW) Tier III certified data center and an 18MW modular liquid-cooled data center.
Keeping AI cool
The technical requirements for AI computing have also driven innovations in cooling system design. EvoBits IT’s experience in cryptocurrency mining operations has proven valuable in this regard, as the company excels in managing high-density computing environments.
“We found that traditional data center design standards don’t fully apply to AI systems. Typically, cooling is calculated 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 indicate.”
The company’s current facility employs strict airflow management protocols, including aisle containment systems that separate hot and cold air paths. These systems inform plans for the new facility, shaping the design of smaller server clusters with both hot aisle containment and raised floor cold aisle containment—systems that efficiently direct cool air to equipment and remove heated air.
EvoBits IT also utilizes indirect evaporative cooling, a system that employs water evaporation to remove heat without mixing outside air with the data center’s internal environment. This achieves 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 to be developed with assistance from global chipmaking leader Nvidia. Liquid cooling technology will be integrated into the data center’s design, supporting between 150 and 200 kilowatts (KW) per rack. This power density surpasses typical air-cooled systems, which handle 5-15KW per rack, and the facility will be constructed to Nvidia’s specifications for its leading GB200 and future graphics processing unit (GPU) models.
“Collaborating with Nvidia on their future needs has been a tremendous confidence boost—having them reach out to us about our new data center was incredible,” Silviu remarks.
However, developing infrastructure at this scale can be challenging depending on the region. Geographical obstacles have necessitated EvoBits IT to establish transport lines with points of presence in Bucharest and multiple dedicated 100-gigabit connections. Part of these plans includes 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 is evaluating two potential locations: one near its current main office and another in an industrial park 15 kilometers away, with the industrial park chosen for its immediate power availability.
The company’s location north of the Carpathian mountains in Cluj-Napoca has also necessitated significant investment in fiber optic infrastructure to enhance its connectivity to the rest of Europe.
“We’re situated in Romania’s second-largest city, but it’s not a prime area for data centers. All major fiber routes traverse 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 data center connectivity—it’s more about pride. However, 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
To support its ongoing growth in the European data center market, EvoBits IT maintains a robust network of partnerships with three primary suppliers, including Innova Engineering, which assists in the design and construction of EvoBits data centers while addressing the specific challenges of AI infrastructure.
“We have collaborated since 2017,” Silviu explains. “They’re flexible and open to considering different approaches, even though they build many traditional data centers that don’t face the same challenges we do. They treat us as knowledgeable partners, which isn’t always easy to find.”
Similarly, long-term partner and IT giant Supermicro supplies EvoBits with server hardware, a relationship strengthened by joint project presentations, while IT distributor ASBIS manages component distribution across Eastern and Central Europe.
These close partnerships are integral to the core ethos of EvoBits IT.
“As a company, we’ve faced significant challenges, including a near bankruptcy, but we’ve overcome every obstacle and continued to grow,” 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 offers server demonstrations at no charge and remains flexible regarding payment terms and bandwidth usage.
“We provide demo servers for free, collaborate with customers when invoices can’t be paid on time, and are accommodating with bandwidth overages because our goal is to grow together,” Silviu explains. “During our tough times, our partners showed us the same understanding. For instance, Innova Engineering, our data center construction and maintenance provider, suspended payments for six months while still performing all necessary work. That’s why we maintain such strong relationships with our providers and clients.”
Keeping a sustainable focus
Looking ahead, EvoBits IT has ambitious plans to emphasize the sustainability of its data centers. As its operations expand across Eastern Europe, Silviu explains that the company is eager to prioritize integrating renewable energy.
For example, the company plans to install solar panels with battery storage systems to achieve energy independence during the summer months. The battery systems will utilize chemistry designed for over 10-year operational lifespans, allowing electricity use from storage during periods of high grid prices. This builds on existing efficiency measures that EvoBits IT has implemented, including optimized power infrastructure sizing to minimize transmission and conversion losses.
In the long run, EvoBits IT hopes that its investments in infrastructure will give the company a competitive edge, particularly in light of rising energy prices across Europe following the Covid-19 pandemic.
The company plans to further expand in Romania and establish facilities in the western region and Bucharest to create what Silviu refers to as a “triangle” of certified data centers.
“We are doing this for environmental reasons, but also because we focus on the next five years rather than just the next quarter,” Silviu explains. “As a private company, we prioritize long-term viability, and being sustainable ultimately proves more profitable.”
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