An introduction to data centers, including a discussion on location criteria, key factors to look for when thinking about establishing a data center in an existing building and case studies on data centers in the Atlanta and Toronto areas.

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DATA CENTER
SITE SELECTION

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
• One of few real estate asset types to receive significant
investment during 2008 recession
• Most companies have data center needs
• Either own or lease
• Investment level depends on criticality to business
• Function of data center depends on business type
What is a Data Center?

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
• A building that is purpose built to house massive amounts
of computer equipment
• Complex electrical and
mechanical systems
• Generally include:
– Redundant power and cooling
– Redundant fiber
– Environmental controls
and facility hardening
– Self sufficiency
• Construction cost per square foot 10x commercial
What is a Data Center?

4. 44
What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
What is a Data Center?
Typical Non-Critical Commercial Service

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
What is a Data Center?
Typical Data Center Critical System

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
What is a Data Center?

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
• Economic Incentives
• Tax incentives
• Peak shaving or cogeneration incentives
• Sustainability Opportunities/Incentives
• Green power availability
• Utility rebates to energy
efficient equipment
• Free cooling opportunities
• Data Center “Friendly” Municipalities
• Expedited approval and other helpful processes
Data Center Location Criteria

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
• Natural Disaster Potential
– Seismic
– Tornado/Hurricane
– Flood
– Tsunami
• Utility Availability/Reliability/Costs
– Power, Fiber, Water, Sewer
– Power Cost, Power Cost, & Power Cost
Data Center Location Criteria

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
• Stay Away from Hostile Adjacencies
– Airports/flight paths
– Railway lines
– Nuclear or other power plants
– Hazardous/explosive materials/facilities
– Residential neighborhoods
• But close enough to:
– Airports
– Freeways
– Emergency services
– Data Center equipment technicians
– Public transportation
Data Center Location Criteria

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
Site & Building
– Structural steel or reinforced concrete shell
– Thickened existing slabs to support heavier loads
– Roof to withstand 120 mph winds
– Floor to roof structure height min. 18 feet
– Roof structure to withstand hanging loads
What Makes an Existing Building Attractive?

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
Site & Building
– Single story
– Minimum openings on exterior walls and penetrations on roof
– Age/condition of roof and skin
– Large column less areas
– Existing surveillance, intrusion detection and access controls
What Makes an Existing Building Attractive?

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
Utilities
– Buried utilities
– Diverse fiber and power availability
– Reliability of power grid
– Sufficient water availability
What Makes an Existing Building Attractive?

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
Electrical
– Power capacity available for day 1 and
future growth
– Service entrances on each side of
building
– System Average interruption Duration
Index (SAIDI)
– No generator runtime, noise, fuel storage
limitations
What Makes an Existing Building Attractive?

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
Mechanical
– Sufficient site area for on-grade
mechanical equipment
– No mechanical equipment on roof
– Municipal water & dual service
availability
– Reliable well water availability
– Site area for water storage
What Makes an Existing Building Attractive?

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
1st in Data Center Risk Index* driven by:
• energy security
• education
• political stability
• water availability
• avg. cost / kw
• inflation
• GDP per capita
• sustainability
*Source: Cushman and Wakefield Data Centre Risk Index 2013
CASE STUDY – Atlanta

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
*Source: Georgia Power
CASE STUDY – Atlanta

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
Low Total Cost of Ownership and Risk
 Economic Incentives
• Lower tax rates
• Lower costs of living and business
• Data Center Tax Incentive Programs
– Sales and use tax exemption
– Property tax relief opportunities
 Relatively Low Natural Disaster Risk
• Tornadoes
 Highly Reliable Power and Abundant Fibre
 Availability of Technical Talent
CASE STUDY – Atlanta

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
CASE STUDY - Atlanta

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
5th in 2013 Data Centre Risk Index* driven by:
• 1st in energy security
• 2nd in education
• 2nd in political stability
• 2nd in water availability
• 4th in avg. cost / kw
• 5th in inflation
• 7th in GDP per capita
• 10th in sustainability
*Source: Cushman and Wakefield Data Centre Risk Index 2013
CASE STUDY – Greater Toronto Area

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
GTA - An Attractive Location
 Economic Incentives
• Data Centre Incentive Programs
• Toronto Hydro Demand Response
 Sustainability Opportunities/Incentives
• Feed-in Tariffs (solar)
• Free cooling opportunities
 Relatively Low Natural Disaster Risk
• Floods and Tornadoes
 Relatively Reliable Power (SAIDI 1.43 vs 1.5 N.A. avg)
 Some Municipalities Very Friendly
CASE STUDY – Greater Toronto Area

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
GTA – Under-Served
– 4th largest urban area & 2nd largest financial services sector in N.A.
– 2/3 of Canadian raised floor square footage
*Source: Cushman and Wakefield Market Bytes, Toronto Summer 3013
CASE STUDY – Greater Toronto Area
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
Est. Operational Sq. Ft.

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What is a Data Center?
Data Center Location
Criteria
What Makes an Existing
Building Attractive?
Case Study – Atlanta
Case Study – GTA
CASE STUDY – Greater Toronto Area
GTA – Leaders

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