Martin Paev presented a proposal for Data Sentry Sofia 1, a 7,000 square meter tier 3 data center facility in Bulgaria. Key advantages of the location include lower electricity and labor costs compared to Western Europe. The data center design allows for scalability and high density needs. Construction is planned to start in 2011 and take 24 months at an estimated cost of 52 million Euros. Partners are sought who can provide data center expertise, branding, and sales to advance the project.

1. Data Sentry Sofia 1
Bulgaria
Martin Paev, CFA
London
8 December 2010
4th Annual Finance & Investment Forum for Data Centers

2. Bulgaria – South-East Europe
On the main telecom route Western Europe – Turkey – Middle East
On the cross-road of the Balkan Peninsula
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3. DSS Concept
 Scalable data center
 7,000 sq.m. white space
 6 floors of white space
 Tier 3 (TIA-942) or Level 3+ (IBM)
 14 MW fully redundant power supply
 General IT load – 4 kW/rack
 High-density areas (20+ kW/rack)
 Cold-aisle containment or Hot-aisle containment
 Targeted PUE < 1.3
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4. Why Bulgaria?
Security?  EU Member state
 NATO Member state
Stability?  Stable political environment
 Currency pegged to the EURO since 1997
 Low budget deficit
 Low level of government debt
Costs?  Electricity – 41% cheaper than EU average
 Leading exporter of electricity for SEE region
 Cheap and fast international connectivity
 Lowest construction costs in the EU
 Skilled low-cost IT labor
Taxation?  10% corporate profit tax – lowest in EU
 10% flat personal income tax
Incentives?  Government incentive schemes
 EU grant funding available
Clients?  Offices of blue-chip IT companies
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5. Do Power Savings Matter?
Source: Europe’s Energy Portal
Then Bulgaria is your place !!!
Data Sentry Sofia 1 - Potential Annual Power Savings
Power Consumption (MW) 14
Number of hours in Year 8 760
City Sofia Frankfurt/Main Paris London Amsterdam Madrid
Country Bulgaria Germany France UK Netherlands Spain
Electricity Price (EUR/MW, excl. VAT) 45 132 67 113 99 84
Electricity bill (EUR, excl. VAT) 5 518 800 16 188 480 8 216 880 13 858 320 12 141 360 10 301 760
Annual Savings (EUR) 10 669 680 2 698 080 8 339 520 6 622 560 4 782 960
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6. Connectivity
Bulgaria ranks 5th in the world by quality of broadband Internet
(research by Cisco Systems, conducted by Oxford University in October 2010).
Sofia – residential users internet quality:
 Download – 14,7 Mbps
 Upload - 7 Mbps
 Latency – 52 ms
 Average Price – EUR 8 / month
Multiple international carriers have fiber-optic lines connecting Bulgaria
with Western Europe, Eastern Europe, Turkey and Asia
 n x 40 Gbps and n x 10 Gbps
 Planned upgrades to n x 100 Gbps in 2011.
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7. Cheap Quality Labor
Bulgaria is one of the leading outsourcing destinations globally
Source: National Social Security Institute
Blue-chip IT companies with development & service offices in Bulgaria:
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8. Data Sentry Sofia 1 Location
 A growing business district in the area of Sofia Airport
 Next to Air Traffic Service Authority, hosting its own Data Centre
 Site complies with TIA-942 standards
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9. Potential Clients
 IT companies with offices in Bulgaria
 IT companies with clients in Bulgaria
 Industrial companies with offices in Bulgaria
 International Banks with presence in Bulgaria
 Media companies
 Government
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10. Project Status
 All permits obtained
 Government support for the project
 Construction could start in 1H 2011
 Implementation period – 24 months
 Investment budget ca. EUR 52 mln (EUR 7,500 / sq.m. WS)
Looking for partner with: Possible deal structure:
Data center know how Forward purchase
Strong brand Long-term lease
Sales force Joint venture
Outright sale
Management contract
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11. CONTACTS
Mr. Martin Paev, CFA
Chairman
E-mail: paev@sortis.bg
Cell: +359 88 50 50 200
www.sortis.bg
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