Data Center Power Pricing - Open Spectrum Inc - Sean Patrick Tario - DeltaForce IT
How Different Kw/Hr Pricing Is Impacting Regional Demand - Who Wins, Loses and Why?
Sean Patrick Tario
• Seasoned IT professional and entrepreneur. Worked with dozens of start-ups and scaling companies as a general adviser, director, consultant, investor and award winning sales producer
• Currently serves as the CEO of both Open Spectrum Inc., a global IT Infrastructure consulting firm, and DeltaForceIT, which provides tactical sales training for those working within the data center and hosting industries
• Personally negotiated and closed over 100 data center and hosting deals within the past 3 years with over 60 clients and 30 different service providers around the world.
• Intimately familiar with both retail and wholesale data center markets within North America, Europe and Australia
• Sophisticated buyers of retail and wholesale data center space are concerned about:
– Who owns the power grid
– Ratios of Import vs. Export
– Ratios of Power Source
– Rate fluctuations per kw/hour over time – Subsidies Available
– Stability and Priority of Local Sub-Stations
• DO THE MATH!
– 1 Megawatt in Quincy, WA costs
$21.90 x 1,000 = $21,900/month
– 1 Megawatt in Santa Clara, CA costs $73 x 1,000 = $73,000/month -$613,000 annual savings
• Substantialsavingsforbothowner/operatorsAND clients within regions with utility providers who generate their own power.
• Taking into consideration PUE, savings are even higher.
• As Retail providers build facilities and provide fully managed services in regions with lower power costs, BIG DATA will migrate (and is migrating) away from the major hubs.
• Cost of living is also much lower in regions with lower power costs.
￼Fracking, Solar, Wind... Greenwashing
• “Green” power is mostly an illusion and requires user pay a premium
• Private Power Grid Owners are not incentivized to reduce their total cost of delivering services to their consumers... so even if they CAN they likely will not
• Cost is extremely high and timeframes to roll out new energy programs are extremely high
Impact, Ramifications and Timing
• Mostly corporate owned data centers currently built in these low cost regions NOW
– Facebook, Google, Microsoft, Intuit, Yahoo, etc.
• Sabey and Viawest as an example of private
retail and wholesale providers who “get it”
• I know of NO publicly traded data center providers who currently “get it” because, “...2nd and 3rd tier markets are not a priority”