Data Centre Cost Benchmarking Insights

Data Centre Cost Benchmarking –
An Insight & Common Pitfalls
November 10 2016

Agenda
2
Introductions Questions &
Answers
ConclusionBenchmarking
Data Centres
Examples
Common Pitfalls
Benchmarking
Rational /
Methodology /
Types
Construction
Trends
Global
© Linesight | Private & Confidential | linesight.com 18-Nov-16

3
Introductions
© Linesight | Private & Confidential | linesight.com
1
18-Nov-16

Who we are
7 © Linesight | Private & Confidential | linesight.com
Currently working on projects
with a value of US$30bn
across the regions
Global Construction Consultants
• Project Management, Project Controls & specialist
Consultancy
• We service clients in 150 cities in over 40 countries
• Operating for 42 years
• Headquartered in Dublin Ireland
• ISO Accredited - QEHS
18-Nov-16

What we do
8
Program Management Project Management
Knowledge Center
Global market cost analysis | Insights
Project Controls
ConsultancyHealth & SafetySupply Chain
Management
Procurement
Cost Management
18-Nov-16© Linesight | Private & Confidential | linesight.com

Global offices and project locations
9 18-Nov-16© Linesight | Private & Confidential | linesight.com
Offices
17 Global offices throughout Europe,
the Middle East, Asia Pacific and
North America.
Projects
150 cities in over 40 countries

11
Construction Trends
2

Global Trends
12
• Market Size of Top Global
Construction Markets
18/11/2016© Linesight | Private & Confidential | linesight.com

Global Trends
13
Share of Construction Spending by Region 2020

Global Trends
14
Global Growth Forecasts for 2015 & 2016 ( % GDP growth )

Global Trends
15
Global Capital Flows in Real Estate in 2015

Netherlands Market
 Overall Construction contributed 4.38% to the GDP in Netherlands ( GDP $752Bn )
 Data Centre Construction – remains a significant contributor

Netherlands Market
• Current Tender Pricing at 2012 levels.
• In context of tendering, Inflation considered to be flat
• Attractive time to be building?

18
Benchmarking
Rational / Methodology / Types
3

Benchmarking – Rationale & Uses
19
• Part of a greater topic on ‘Market Intelligence’
• Aims to establish how much a company/organisation needs to improve to be at world
class levels of performance in their strategy and associated business processes,
business results, and critical enablers.
• Identifies gaps by triangulating between current performance, other companies
performance, and world class performance
• Increasing appetite from Client
• Uses
—Price Point (Macro & Micro Level)
—Costing Models for Capex / Opex
—Negotiation Tool

Benchmarking – Methodology
20
• Determine What to Benchmark
• Identify Performance Measures
• Identify Benchmark Partners / Sources
• Determine Data Collection / Analysis Plan
• Measure Yourself
• Measure Partner / World-Class Organization
• Analyse Gaps
• Specify Goals / Action Plan to Meet and Surpass
• Implement and Monitor Progress
• Data has NO value unless it is used.

Benchmarking – Practical Advantages
21
• Consistent global approach for all users
• Assists with budget development & forecasting
• Optimisation of Negotiation plans
—Consistent approach to negotiation
—Generation of regional negotiation targets
—Facilitates more in-depth negotiation
• Unit price comparison as well as $/MW
• Availability of historical unit pricing for comparisons
• Helps identify inconsistent pricing from vendors

Benchmarking – Types
22 18/11/2016© Linesight | Private & Confidential | linesight.com
Example of Time to Market Analysis of 6no. Equip vendors Example of GEO Benchmark Comparisons of 6no. Projects

23
Benchmarking
Data Centre Examples
Common Pitfalls
4

Data Center Experience
31
USA & Mexico
15
Europe
8
Aus/NZ
20
Middle East
7
APAC
120Data Centers Worldwide
+20m
Sq. ft. of white space
+2000mw
Mega Watt critical power
20
UK
19
Ireland

General Benchmarking : International Construction Cost
Range Index 2015
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
India
Bahrain
Oman
UAE
Germany
China
Qatar
Kuwait
USA
Netherlands
Ireland
Japan
Australia
UK
Singapore

Global DC Benchmarking : US$m / MW
12.96
12.7008
12.64
12.46
12.35
12.3
12.25
11.81
11.43
10.59
9 10 11 12 13
New York
San Francisco
Singapore
Amsterdam
Frankfurt
London
Paris
Melbourne
Sydney
Dublin

US DC Benchmarking : o|a US$m/MW
27
Region
2
$12.5m/MW
Region
3
$10.4m/MW
Region
4
$11.1m/MW
Region
1
$10.9m/MW
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
Construction CSA Mechanical Installations Electrical Installations
Equipment Security IT Cabling
Fees, Prelims, Tax Hot Aisle Containment Design

Common Pitfalls
28
• Land
• Incoming Power / Utilities
• Site Conditions
• Building Type (Single / Double / Multi storey)
• Soft Costs
• DC Density per rack
• Currency / Fx

Common Pitfalls
29
• Tiering
• Total Cost of Ownership
• Seismic Constraints
• Demarcation line for Fit-Out Works
• Deployment of Capex for future phases

30
Conclusion
5

Conclusion
31
• Setting the baseline is key to successful benchmarking
• Dangerous tool if not correctly calibrated
• Benchmarking can be used in many ways throughout the project journey
• Overall aim = Greater Market Intelligence for Informed Decision Making

Thank you.
Contact details
Pat Unger, Snr. Project Manager
Mobile: +353 872238255
pat.unger@linesight,com

Data Centre Cost Benchmarking Insights

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