Envirotalks: An Interview with Flexnode

As part of Beaumont Bailey’s mission to connect founders, innovators and key players that make up the fabric of our industry, our latest Technology Spotlight series highlights the success of our incredible members and wider network. In this instalment we speak with Andrew Lindsey, Co-Founder and CEO at FLEXNODE.

 

Tell me a little bit about your organisation and how you have grown into this career path…

“Grown into this career path” is such a great way to think about this entrepreneurial journey I’ve been on that has led us to FLEXNODE! FLEXNODE’s growth path has been a dynamic one, shaped by a series of entrepreneurial ventures and a keen eye for emerging trends at the intersection of technology and real estate. Like so many founders would likely note, it all began with an entrepreneurial spirit, prompting me to dive headfirst into the world of media technology as an alternative path to my then-college-focus. At that time, I was (and still am) an avid live music fan. However, the concert infrastructure was significantly less enjoyable than the musicians. I saw a problem and identified a way to solve it. I founded a concert media brand that leveraged near field communications technology to streamline event entry processes, reducing wait times and improving the fan experience. For about five and a half years this venture enjoyed success before I returned to school to fulfil a promise to my parents.

The entrepreneurial bug had bitten me, and I was hooked. Following my return to college, I launched Source, a software company focused on government communications. Developing a tech business in this highly regulated market taught me a lot about the opportunities and obstacles in trying to address complex missions with zero degree for error.  I decided to take these learnings, coupled with my more formalised education, and apply them to my family’s construction consulting firm, Alpha Corporation. This is where I got to see first-hand the opportunity convergence of tech, real estate, design, and business – all ripe for entrepreneurial innovation in what some may have otherwise seen as a legacy infrastructure market.  As Director of Applied Research and Development, I was able to drive new approaches into often long-standing construction challenges by integrating various technologies into our projects and collaborating with industry experts like Bob Mazur.

Bob and I embarked on numerous projects together, exploring technologies ranging from augmented reality to blockchain. However, it was our observation of the exponential growth in and challenges for data centres in Northern Virginia that sparked our next big idea. It was clear to us that compute requirements were only going to increase exponentially with the advent of AI – straining current data centres to scale at a pace that their design–build–maintain lifecycle couldn’t maintain. Recognising the sustainability challenges posed by the traditional data centre models, we envisioned a distributed approach that optimised existing infrastructure and addressed growth issues such as land scarcity and power distribution. Like a lightbulb turning on, all my entrepreneurial, tech, and construction experiences coalesced as a foundation to reimagine the future of digital infrastructure.

Bob’s and my vision crystallised into FLEXNODE, a distributed data centre model based around cooling technology using modular building concepts. We identified the rising trend of liquid cooling as a solution to the increasing heat and energy demands of AI chips in data centres. By focusing on liquid cooling within a distributed model, we positioned ourselves at the intersection of market demand and innovative solutions.

Our journey has been characterised by a bottom-up understanding of market needs and a top-down vision for future trends. We anticipate riding the wave of demand for sustainable, efficient data centre solutions, positioning FLEXNODE as a leader in the evolving landscape of technology and real estate.

Looking a little closer at the technology, what problem does FLEXNODE solve? What are the sustainability features of the product?

Data centres face multiple challenges regarding their emissions, only compounded by the increasing need globally for greater compute capacity in more populated geographic areas. FLEXNODE delivers a way to scale with the volume of data without scaling the environmental impact.

Scope 1, 2, and 3 Emissions Reduction

Our focus on liquid cooling technology serves as a key solution to reduce energy consumption, particularly in Scope 1 emissions. By developing purpose-built liquid-cooled data centres, we address the inefficiencies often associated with traditional cooling methods. This not only minimises energy waste but also optimises space utilisation, ensuring that cooling resources are allocated efficiently.

Furthermore, we consider the source of energy in Scope 2 emissions. While sustainable energy is a priority, we also recognise the importance of proximity to energy sources. By situating data centres closer to their power generation points, we mitigate energy loss due to long-distance transmission, thereby reducing overall carbon emissions.

Embodied Carbon Reduction

Addressing Scope 3 emissions and embodied carbon presents unique challenges, particularly in the construction industry. Traditional reporting methods are often inadequate, relying on broad assumptions and lacking transparency. However, our approach to design, manufacturing, and assembly enables precise tracking of materials and logistics.

Through our direct-to-manufacturing approach, we can accurately account for the carbon footprint of each component, from steel sourcing to fabrication and assembly. This level of transparency not only facilitates more accurate reporting but also incentivises our supply chain partners to prioritise sustainability.

Potential Benefits

  • Energy Efficiency: Liquid cooling technology and strategic location optimisation result in significant energy savings, reducing both operational costs and environmental impact.
  • Sustainable Sourcing: By prioritising sustainable energy sources and transparent supply chain practices, we contribute to a cleaner and more sustainable energy ecosystem.
  • Emissions Reduction: Our holistic approach to emissions reduction, spanning Scope 1, 2, and 3, ensures that we address the full spectrum of carbon emissions associated with data centre operations and construction.

In summary, our solutions not only offer immediate benefits in terms of energy efficiency but also contribute to long-term sustainability by minimising carbon emissions throughout the data centre lifecycle.

How do you partner with existing data centres and make them more sustainable? Do you have a retrofit capability?

Retrofit Capability

We do indeed have a retrofit capability that sets us apart. Our system is designed to be modular, allowing us to break it down into small components that can easily fit into standard freight elevators. This modular design facilitates quick and efficient installation, almost like assembling Lego blocks.

With our retrofit solutions, we engineer rooms with advanced climate control and heat containment features, enabling seamless integration of liquid cooling systems alongside existing air-cooled infrastructure. This ensures optimal distribution of liquid cooling while managing the complexities of pipe networks and pump grids.

Challenges and Solutions

However, retrofitting older facilities poses unique challenges. Older buildings often lack comprehensive construction documentation, making it difficult to execute retrofit projects efficiently. Additionally, navigating multiple ownership changes further complicates the process.

Conversely, newer buildings present their own set of challenges, with active customers and stringent service level agreements (SLAs) to consider. Disrupting ongoing operations during retrofitting is a major concern for owners.

Green Field Builds

Given these challenges, we increasingly focus on green field builds, especially in areas with existing energy generation and distribution infrastructure. While retrofitting remains a viable option, our shift towards green field builds allows us to streamline the process and avoid potential disruptions to existing operations.

In summary, while we offer retrofit solutions for existing data centres, our emphasis is shifting towards green field builds, where we can maximise sustainability and efficiency while minimising operational disruptions.

What are some of the key projects you’ve completed and what is happening on the partnerships side?

Let me highlight some key projects and partnerships we’ve been involved in:

Lab Space in New York

We’re thrilled to announce the establishment of a dedicated lab space in New York, in collaboration with our manufacturing partner. Here, we tackle various challenges and conduct rigorous testing of liquid cooling solutions. Currently, we are actively engaged in running several large language models in partnership with a leading AI-as-a-service company. This partnership signifies our commitment to pushing the boundaries of innovation in data centre technology.

Innovation Campus

While specific details regarding locations are under confidentiality protocols, we’re excited to share insights into our Innovation Campus project. This initiative involves a close collaboration with a manufacturer, a hospital, and a college. By facilitating resource-sharing among these entities while maintaining data security on-premises, we’re pioneering a novel approach to distributed data centres. FLEXNODE supports the growth of AI by bridging the gap between students who have access to the necessary compute power and those who don’t, thereby allowing FLEXNODE to serve as a vehicle for success and innovation for all types of students and enabling the benefits of AI for everyone. The success of this project has sparked interest from other colleges, highlighting the potential for similar collaborations in the future.

In summary, our ongoing projects and partnerships underscore our dedication to innovation and sustainability in the data centre industry. Through collaborative efforts and cutting-edge technology, we continue to drive positive change and redefine the future of data centre infrastructure.

What is fundraising climate like right now for scaling organisations?

Fundraising Climate Insights

Navigating the fundraising landscape, especially for scaling organisations, can be challenging, particularly in the realm of hardware and software integration, as we’ve discussed earlier. The prototyping and R&D processes inherent in this domain often require significant capital investment, which may pose challenges for some investors and venture capitalists (VCs) to fully grasp and support.

However, there’s a notable trend emerging, exemplified by our experience at FLEXNODE. This trend involves the adoption of an opcode prodco approach, where proprietary solutions and technologies are leveraged to execute financially isolated projects. This approach minimises the capital impact on VC funding, allowing investors to maintain their desired ownership stakes in companies.

Recent Raise

At FLEXNODE, we’ve recently witnessed first-hand the growing interest in this approach, which has positively influenced our recent fundraising efforts. By adopting an opcode prodco model, we’ve been able to effectively manage capital expenditures, aligning with the expectations of investors and VCs. This strategic approach not only facilitates fundraising but also positions us for sustainable growth and success in the long term.

In summary, while the fundraising landscape for scaling organisations may present challenges, innovative approaches such as opcode prodco are reshaping the way capital is deployed and enabling companies like FLEXNODE to thrive in an ever-evolving market.

If you would like to discuss any of the topics raise in this piece or if you need support with your leadership resourcing strategy, please get in touch with Emma Callahan on: emma.callahan@beaumontbailey.com.