

By Michael Fisher*
If ever there was a need to underline the importance of physical security of data centres handing financial information, it is delivered by figures on electronic activity related to Bitcoin and its related cryptocurrencies.
While the value of Bitcoin may fluctuate with investor whim and trust, its volume of trading across its global blockchain can be illustrated by the amount of power this trading consumes.
Annual global estimates range from 90 to 150 terawatt-hours, primarily due to its complex Proof of Work (POW) mining process. The lower end of the scale exceeds NZ’s total energy consumption of about 40 terawatt hours. It is equivalent approximately to the power consumption of Finland. The upper end of the scale is closer to Australia’s consumption of 188 terawatt hours last year, according to National Electricity Market (NEM) figures.
While El Salvador became the first country to adopt Bitcoin as a legal tender several years ago (alongside the US dollar), Australasia’s acceptance has been more fluid. Smaller banks have been more likely to support crypto activity, while the big four banks in Australia, for example, have tightened their policies on crypto transfers, though some are permitted.
What these dramatic figures illustrate is that financial data trading is expanding, with Bitcoin conservatively accounting for a third of data centre power consumption. The International Energy Agency (IEA) conservatively estimates total data centre energy consumption at between 1-2% of global electricity, with some estimates suggesting this could rise to 3-4% - unless the data industry can find ways to reduce energy consumption to help achieve global Net Zero, which is one of its greatest challenges.
And another great challenge the industry faces is to maintain physical security of its data facilities, which is the other side of the same coin as cyber security. Both are vital.
The headlines tell us the data centre industry is currently focussed on tackling the cyber challenge of hacking, buttressing its crypto defences that are essential to protect investors and maintain confidence.
But for the same reasons of protection and confidence, strong attention is also being focussed by data industry world leaders to physical security (as we have outlined previously in our capacity as a global security entrance company operating in 27 countries and serving world leading data centre, data service and financial institutions, including companies at the very top of the Fortune 500).
They are installing layered security in recognition of current and anticipated global threats and requirements, including but not confined to:
• Unauthorised and unrecorded access by unaccredited people to areas with different access restrictions, ranging from entrances through to ultra-high-security areas
• Sabotage, theft or violence by disgruntled employees or by opportunistic visitors. Not only do facility operators have a Duty of Care to protect their customers’ property, but also a long-established Duty of Care to protect staff and visitors where the facility owner/operator or employer ought to have known of the potential risk of injury or harm to another person (without the benefit of hindsight)
• Terrorist and politically inspired incidents, which are an unfortunate but real threat to all types of business premises today (a point underlined to me personally when I reviewed NSW business premises insurance renewal which contained a Terrorism Premium (apparently a response to a terrorism pool was established by the Federal Government on 1 July 2003. When a Declared Terrorist Incident (DTI) happens, eligible insurance contracts receive terrorism cover.)
• Maintaining regulatory compliance, which is critical not only for facilities housing government data, but also as an important benefit of private businesses and service organisations. Important security compliance issues include Data Sovereignty Assurance which confirms that government data stays within Australian jurisdiction. Protection of health and personal data is an important focus of national security.
• Reinforce compliance of physical security requirements affecting particular industries, including, for example, those observing PCI DSS provisions for restricted access to critical areas or facilities. The PCI DSS international standard applies to all organisations globally that use payment cards to facilitate payment. All Australian organisations that accept card payments are required to comply with the PCI DSS regardless of business size.
Protection of physical security in this context is an issue for all data centres - ranging from Hyperscale data centres, also known as cloud data centres, serve 10,000-plus servers, cost up to $US1 billion to build Their customers include the world’s largest web services providers, including our clients.
But there are also scores of Enterprise facilities, private facilities owned by companies and public agencies. Enterprise data centres often store and manage data such as customer information and sensitive financial records.
And Rounding out the Data Centre landscape are Co-Located centres, also known as CoLos, and Multi-Tenant Data Centres, (MTDCs) used by multiple companies including retail CoLos, Wholesale CoLos and Managed CoLos and Managed Services CoLos full managed by a third party. These include retail, wholesale and managed CoLos fully managed by a third party. Edge Data Centres, also known as Micro Data Centres, are smaller decentralised facilities that provide data storage in a location closer to where data is being used.
Australia had 306 data centres at the start of 2024, with Sydney the most intensive concentration of the facilities, according to the Cloudscene data centre ranking organisation. Sydney is also listed as a Tier One global Top 10 Data Centre Market, along with, in the Asia-Pacific, Beijing, Singapore, Tokyo, and Shanghai.
The expanding number of data centres here and in New Zealand are all affected by the growing role of Bitcoin exchanges provide a platform for traders and investors to place market or limit orders or purchase and sell Bitcoin to others.
The future is already on our doorstep. And securing the internal entrances to data centres, the crucial final layer of physical security, remains essential to protecting the valuable data within.
Download Boon Edam’s white paper, “Best practices for data centre security and efficiency” for more insights into data centre security.
About us:
About Royal Boon Edam
With work environments becoming increasingly global and dynamic, smart, safe entry has become the centre of activity in and around many buildings. Royal Boon Edam is a global market leader in reliable entry solutions. Headquartered in the Netherlands, with 150 years of experience in engineering quality, we have gained extensive expertise in managing the transit of people through office buildings, airports, healthcare facilities, hotels, and many other types of buildings. We are focussed on providing an optimal, sustainable experience for our clients and their clients. By working together with you, our client, we help determine the exact requirements for the entry point in and around your building. You can find more news about Boon Edam on www.boonedam.com.au/news
Contact details:
Jack Mallen-Cooper
PR Consultant
Whyte Public Relations
(02) 9901 4306
whytepr@whytepr.com.au