The rapid advancement of artificial intelligence (AI) technologies has led to a significant surge in demand for specialized computing infrastructure across Europe. Traditional data center hubs in cities like Frankfurt, London, Amsterdam, Paris, and Dublin are expanding, but a new wave of development is emerging in less expected places like Romania. Dedicated to enhancing its digital infrastructure and connectivity capabilities, Romania presents a promising opportunity for growth. At the forefront of this transformation is EvoBits IT, a company managing over 900 AI servers to meet the growing demand for AI services.
Strategic Evolution and Business Pivot
From Software Development to Data Centers
EvoBits IT originally started as a software development firm founded in 2014. However, the cryptocurrency mining boom of 2017-2018 catalyzed a strategic pivot. By 2020, EvoBits had fully transitioned to the data center business, focusing on hosting services. This change was driven by the rapidly evolving needs of the market and the company’s ability to adapt swiftly. Transitioning from software development to managing large-scale data centers required not just a shift in focus but also significant investment in infrastructure and technology, a challenge that EvoBits successfully met.
The initial years of EvoBits were marked by an intense focus on developing cutting-edge software solutions for clients across various industries. However, the increasing complexities and demands of the cryptocurrency market presented a unique opportunity. The need for powerful computational capabilities during the cryptocurrency boom served as a catalyst for the company’s pivot. EvoBits began by leveraging its technical expertise to provide hosting services for cryptocurrency mining, gradually expanding its capabilities to accommodate the broader market for AI and cloud computing. This strategic evolution laid the foundation for EvoBits’ current position as a leading player in the AI infrastructure market in Eastern Europe.
Leadership Restructuring
In 2021, founder Silviu Balaci sold his shares but remained as an IT consultant. In this role, akin to a Chief Technology Officer, Silviu guides EvoBits’ business direction and technical strategy, positioning the company for growth in the AI infrastructure market. This leadership restructuring was crucial for aligning the company’s goals with the rapidly evolving technological landscape. Silviu’s continued involvement ensured that EvoBits retained a clear vision and strategic focus, which has been instrumental in its sustained growth.
The decision to retain Silviu in a leadership capacity, despite his exit as a shareholder, highlighted EvoBits’ commitment to continuity and expertise. Silviu’s deep understanding of the industry and technical acumen have been pivotal in steering the company through various challenges and opportunities. Under his guidance, EvoBits has been able to innovate and expand its offerings, catering to the growing demand for specialized AI infrastructure. This leadership restructuring has not only stabilized the company during a period of significant change but also set the stage for future advancements and market expansion.
Innovative Infrastructure and Client Relationships
Hardware Deployment and Custom Solutions
An early adopter of EvoBits’ rebranding was Stability AI, highlighting EvoBits’ innovative approach to hardware deployment. While the company purchases pre-built servers for high-end needs, it assembles many AI servers in-house, enhancing single-core performance. This approach allows EvoBits to fine-tune its infrastructure to meet specific client requirements, ensuring optimal performance and efficiency. By leveraging in-house assembly for many of its servers, EvoBits can maintain greater control over the quality and configuration of its hardware, a significant advantage in the highly competitive AI infrastructure market.
Assembling servers in-house not only enhances performance but also results in cost efficiencies. By customizing hardware solutions to align with client needs, EvoBits can offer competitive pricing without compromising on quality or performance. This innovation in hardware deployment has attracted a focused but highly valuable client base, enabling EvoBits to build strong, long-term relationships with its clients. The emphasis on custom solutions underscores EvoBits’ commitment to delivering tailored, high-performance infrastructure that meets the unique demands of AI and cloud computing applications.
Concentrated Client Base and Financial Performance
EvoBits serves a concentrated client base of fewer than ten clients but has generated impressive financial results with a turnover of approximately €7 million in the past year. The company’s ability to deliver high-quality, specialized services to a select group of clients has proven to be a successful strategy. By focusing on a niche market, EvoBits can provide a level of service and expertise that sets it apart from larger, more generalized providers. This focused approach has enabled the company to generate significant revenue and fueled its ongoing expansion efforts.
The financial success of EvoBits is further testament to its effective business model and strategic focus. Despite serving a limited number of clients, the company’s ability to deliver value has driven strong financial performance. EvoBits is expanding its facilities, including a new 2MW Tier III certified data center and an 18MW modular liquid-cooled data center. These expansions will not only increase the company’s capacity but also enhance its ability to meet the growing demand for AI infrastructure. By investing in advanced facilities and technology, EvoBits is well-positioned to continue its upward trajectory in the market.
Advanced Cooling Systems and Technological Innovations
Cooling System Design Innovations
The demanding requirements of AI computing have pushed EvoBits to innovate in cooling system design, drawing upon their experience in cryptocurrency mining. Traditional data center design standards often fall short for AI systems, which require significantly higher airflow than conventional calculations suggest. EvoBits employs strict airflow management protocols, including aisle containment systems that separate hot and cold air paths. These protocols have shaped the design of smaller server clusters, featuring both hot aisle containment and raised floor cold aisle containment systems. These systems efficiently direct cool air to equipment and remove heated air, ensuring optimal cooling and performance.
EvoBits’ current facility incorporates these stringent airflow management techniques to meet the high cooling demands of AI infrastructure. The company’s expertise in managing cooling challenges, honed during its cryptocurrency mining phase, has proven invaluable as it caters to the AI market. By implementing advanced cooling system designs, EvoBits ensures that its data centers operate efficiently and reliably, even under the intense demands of AI computing. This innovative approach to cooling not only enhances performance but also improves energy efficiency, a critical consideration in today’s environmentally conscious market.
Liquid Cooling Technology
To meet the needs of high-powered AI systems, EvoBits is incorporating liquid cooling technology in its proposed 18MW facility. This innovation supports higher kilowatts per rack than typical air-cooled systems and aligns with Nvidia’s specifications for high-performance GPUs. Liquid cooling technology represents a significant advancement in data center design, offering superior cooling capabilities and energy efficiency. By embracing this cutting-edge technology, EvoBits positions itself at the forefront of the AI infrastructure market, providing clients with the advanced solutions they need to compete effectively.
The proposed 18MW facility will support between 150 and 200 kilowatts per rack, far exceeding the capabilities of traditional air-cooled systems, which typically handle 5-15KW per rack. This substantial increase in cooling capacity allows EvoBits to accommodate the most demanding AI applications. The facility will be built to Nvidia’s specifications for its GB200 and future GPU models, signaling a close collaboration with one of the leading players in AI hardware. This partnership has significantly boosted confidence in EvoBits’ new data center and underscored its commitment to providing state-of-the-art infrastructure solutions.
Overcoming Geographical and Infrastructure Challenges
Transport Lines and Connectivity
Building a robust data center infrastructure in Cluj-Napoca presented geographical challenges, especially in terms of connectivity. EvoBits established transport lines and multiple dedicated 100-gigabit connections to ensure effective communication with the rest of Europe. This required significant investment in fiber optic infrastructure to connect effectively, as all major fiber routes traverse the southern part of the country, while EvoBits is in the central-north region, divided by the Carpathian mountains. These challenges necessitated a commitment to building the necessary infrastructure to support EvoBits’ ambitious growth plans.
EvoBits’ efforts to overcome these geographical challenges highlight its dedication to providing reliable and high-performance data center services. The company’s investment in fiber optic infrastructure and transport lines has ensured robust connectivity, critical for supporting AI and cloud computing applications. By establishing multiple dedicated connections, EvoBits has created a resilient network capable of handling the high demands of its clients. This strategic approach to infrastructure development has enabled EvoBits to position Cluj-Napoca as a viable and competitive location for its data centers, despite the initial connectivity disadvantages.
Commitment to Cluj-Napoca
Despite connectivity challenges, EvoBits chose Cluj-Napoca for its data center due to a strong sense of pride and commitment. The company’s decision to invest heavily in fiber optic infrastructure is a testament to its dedication to the city and its long-term vision for growth. Employees wanted to continue living and working in Cluj-Napoca, and EvoBits was determined to make it work despite the difficulties. This commitment to the local community has been a driving force behind the company’s success and has fostered a sense of pride and ownership among its employees.
EvoBits’ choice to base its operations in Cluj-Napoca reflects its broader commitment to sustainability and local development. By investing in the city’s infrastructure and overcoming connectivity challenges, EvoBits has demonstrated its ability to adapt and thrive in a competitive market. This commitment to Cluj-Napoca has not only supported the company’s growth but also contributed to the development of the local tech ecosystem. EvoBits’ success in turning a potential disadvantage into a strength showcases its innovative approach and determination to succeed.
Sustainable Growth and Strategic Partnerships
Focus on Sustainability
EvoBits IT is committed to the sustainability of its data centers, planning to integrate renewable energy sources like solar panels with battery storage systems. These initiatives aim for energy independence and further optimized power infrastructure. For instance, EvoBits intends to install solar panels with battery storage systems, aiming for energy independence during the summer months. This builds on existing efficiency measures, such as optimized power infrastructure sizing to minimize transmission and conversion losses. EvoBits’ long-term investments in infrastructure aim to provide a competitive edge, especially given rising energy prices across Europe following the Covid-19 pandemic.
By prioritizing sustainability, EvoBits is ensuring that its operations remain viable and cost-effective in the long term. The company’s focus on integrating renewable energy sources reflects a broader commitment to environmental responsibility. These initiatives are designed not only to reduce the environmental impact of EvoBits’ data centers but also to enhance their efficiency and resilience. As energy prices continue to rise, the ability to offset costs through renewable energy sources and efficient power management will be an increasingly important competitive advantage.
Partnership-Driven Approach
Strong partnerships with suppliers like Innova Engineering, Supermicro, and ASBIS are central to EvoBits’ operations. These collaborations have been invaluable in addressing AI infrastructure challenges and supporting the company’s long-term growth plans. For instance, long-term partner and IT giant Supermicro provides server hardware through a relationship strengthened by joint project presentations. IT distributor ASBIS handles component distribution across Eastern and Central Europe. Such partnerships form the core ethos of EvoBits IT, described by Silviu as operating more like a family than a traditional company, including in interactions with customers.
EvoBits’ partnership-driven approach has been a key factor in its success. By working closely with trusted suppliers and partners, EvoBits has been able to leverage their expertise and resources to overcome challenges and drive innovation. These partnerships have supported EvoBits’ growth by providing access to advanced technology and infrastructure solutions. The company’s collaborative approach fosters strong relationships and ensures that both EvoBits and its partners can grow and succeed together. This ethos of collaboration and mutual support is reflected in EvoBits’ interactions with customers, further strengthening its position in the market.
Future Expansion and Long-Term Vision
Plans for Expansion
EvoBits plans to establish facilities in Romania’s western region and Bucharest, creating a strategic “triangle” of certified data centers. This approach aims to enhance sustainability, improve energy efficiency, and expand EvoBits’ presence in the European market. By developing a network of strategically located data centers, EvoBits will be able to offer improved redundancy and reliability, further enhancing its infrastructure capabilities. The expansion into new regions will also provide opportunities to tap into local talent and resources, supporting EvoBits’ growth and innovation.
The planned expansion into Romania’s western region and Bucharest reflects EvoBits’ ambition to scale its operations and meet the growing demand for AI infrastructure. These new facilities will be designed to the highest standards of efficiency and sustainability, aligning with EvoBits’ commitment to environmental responsibility. By creating a “triangle” of certified data centers, EvoBits will be able to provide robust and reliable services to its clients across Europe. This strategic expansion positions EvoBits to capitalize on emerging opportunities in the market and further establish its leadership in the AI infrastructure space.
Commitment to Long-Term Goals
The rapid progress in artificial intelligence (AI) technologies has triggered a substantial rise in the need for specialized computing infrastructure throughout Europe. While traditional data center hubs in cities like Frankfurt, London, Amsterdam, Paris, and Dublin are continuing to grow, a new trend is emerging in less expected regions such as Romania. Romania is actively working to enhance its digital infrastructure and connectivity, presenting significant potential for growth within the tech industry.
Leading this shift is EvoBits IT, a pioneering company that manages over 900 AI servers to cater to the increasing demand for AI services. By leveraging Romania’s commitment to improving its digital capabilities, EvoBits IT is positioned at the forefront of this transformation. The company’s substantial number of AI servers highlights the growing importance of dedicated computing power in meeting the needs of modern AI applications.
Romania’s strategic focus on digital development not only aims to attract more companies like EvoBits IT but also to establish itself as a key player in the European tech landscape. The expansion into less traditional areas underscores the evolving nature of the digital economy, where infrastructure development and technological expertise can drive significant regional growth. As AI continues to advance, the demand for robust, specialized computing infrastructure is set to escalate, making Romania an intriguing and promising hub for future technological expansions.