A team decided to test PostgreSQL's capabilities with a one-petabyte database, setting a challenge for December 10, with a report due by January 20. They initially sought cloud storage but found no provider could meet their requirement for a single chunk of storage, leading them to rent physical servers. They used Shardman, a distributed database engine, to manage the database across seven servers. They employed the YCSB benchmark for performance testing and faced various challenges, including data loading issues and hardware problems. By January 15, they reached 863 terabytes of data generation, falling short of their petabyte goal, and documented their findings for future reference.