Global Data Center Location InsightsMarch 2013This report is solely for the use of Talent Neuron clients and Talent Neuron Subscribers. No part of it may be circulated, quoted, orreproduced for distribution outside the client organization without prior written approval from Talent Neuron.
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3Talent Neuron can help in selecting the right location for datacenter by providing data, analyticsand insights on Locations, Talent, Cost, Peer Group Footprint & TrendsLocation Analysis Understand the capability of each potentiallocation and make data driven decisions onsetup and expansionPeer and TalentInsightsUnderstand the capability of each potentiallocation and make data driven decisions onsetup and expansionEcosystem Analysis Understand the capability of each potentiallocation and make data driven decisions onsetup and expansionSource: Talent Neuron Website
Zinnov 4CAPABILITIESTalent Neuron has assisted over 100 companies in their global location analysis and site selectionprocessCapabilitiesEcosystem Insights Forecasts Industry/DomainWage InflationTrendsCompany TrackerMarket TrackerSkill Wizard Market InsightsZINNOV KEY FOCUS IS ON THETECHNOLOGY INDUSTRY. OVER80% CLIENTS ARE IN THEPRODUCT ENGINEERINGDOMAINConsultingProprietaryData SourcesNetworkReportsWeb CrawlingExpertInsightsAnalyticsSurveys400+ GLOBALCITIES COVERED6 DOMAINS35 FUNCTIONs150+ SKILL SETS
Zinnov 5PROPOSED APPROACH – Data Gathering and Analysis through BIG DataTalent Neuron will use data driven Big data principles (for large data analysis) which will providecomprehensive insights and transparency on the trends, current realities and opportunities inany locations100+ Job sites3,000+ CompanyCareer SitesUniversitiesSocial Media/Public ProfilesHadoopEngine(Big DataApproach)=Over 12,000Unique Dataelements foreach cityPatent DatabasesPublication/JournalDatabasesTechnologyContributor listsCommunity SitesConnectors (API / Screen Scraping)SkillAvailabilityLocationInsightsCompensationand CostTrendsPeerCompanyFootprintSource: Talent Neuron Website
Overview of Global Data CentersForty five percent of all global data centers are located in the US6Note: Map is not to scaleSource: Talent Neuron, Interviews with Industry StakeholdersCanada3%US45%WesternEurope25%Western Europe includes UK, Ireland, Switzerland, Germany, France, The Netherlands, Italy and PolandBrazil<1%Argentina<1%Chile<1%Turkey<1%India~2.5%Singapore<1%Malaysia~1% HongKong~1%Australia~3%Japan~1.5%
7Companies typically consider the following Categories to evaluate the locations for data centersetupFramework forEvaluationPhysicalInfrastructureCostTalentNetworkInfrastructureBusinessContinuityOthersSource: Talent Neuron Website
8A comprehensive analysis of the relevant parameters under each category is necessary toensure the selection of the suitable locationAccessibilityReal EstateLocationRegulatoryComplianceRecycling FacilityCooling SystemsSourcesRenewableSources of PowerPower StabilityPeer CompaniesPresenceTechniciansNetwork PoliciesImplementationTier 3 levelNetwork supportSOCNOCNetwork SupportTalentRecycling Cost (if any)Back-up CostsAmortization PoliciesReal Estate CostsCooling CostsPower CostsImport Export CostsOperating CostSetup CostEquipment CostTransportation CostConnectivity CostFiber CostThird PartyVendorsEase ofReplacement andRepairsNetwork VendorsDomainKnowledgeFiberExisting DatacenterinfrastructureConnectivityInfrastructureGovernmentpoliciesEnvironmentalData SecurityTerrorismPoliticalForce MajeurePhysicalNatural DisastersWar HistoryPhysicalInfrastructureTalent CostNetworkInfrastructureBusinessContinuity &OthersSource: Talent Neuron
Growing Data Center MarketData center facilities are growing rapidly in emerging locations such as Turkey and Brazil9Source: Talent Neuron, Interviews with Industry Stakeholders10% 10%45%40%5%15%55%30% 30%15%0%20%40%60%US Canada Brazil Argentina UK Germany Turkey Russia China IndiaData Center Facility Growth in Key Global MarketsTax incentives, availability of energy and property at subsidized rates for new Data Centers have beendriving the growth of Data Center facilities in emerging geographies
Emerging Data Center Locations in EuropeData centers in EMEA locations have helped Internet companies to efficiently serve their customers inthe high volume European market10Note: Map is not to scaleSource: Talent Neuron, Interviews with Industry Stakeholders• With its proximity to London, Slough is central to businesses making it astrategic geographic location for data center operations• The city has dual power supply and high levels of security making it an ideallocation for data centers• The city is on the hub of the major fiber networksSloughLuleå• Luleå benefits from the country’s high redundant power grid with renewablehydropower and highly developed infrastructure• Sweden has one of the lowest electricity prices in Europe with Luleå havingthe lowest electricity prices in Sweden• The region has a large number of data center skilled talent with expertise infields such as distance-spanning technology, long-term digital preservationand lower energy consumption of web technologiesSwedenEngland• Availability of low cost abundant renewable geothermal and hydroelectricenergy makes the country suitable for data center operations. Energy costs inthe country is 1/3rd of energy costs in London.• Availability of IT infrastructure talent has been growing in the region andremoval of VAT on IT infrastructure has made Iceland more attractive for datacenter operations• Data centers in Iceland also benefit from fresh air cooling cost savingsReykjavikIceland
Other Emerging Data Center LocationsEmerging locations such as Santiago has seen data center investments by companies like Google due tofavorable government policies and lower operating costs11Note: Map is not to scaleSource: Talent Neuron, Interviews with Industry Stakeholders• Santiago has reliable infrastructure and skilled IT infrastructure talent requiredfor the growth of the data center market• Availability of new climate control technology and low cost energy has helpedto increase data center investments in the country• Favorable government policies and incentives have helped enterprises toemphasize on innovation, which in turn has driven the growth of Internet anddata center market in the countrySantiago• Data centers in Canada benefit from limited government interference incorporate data which has been a cause of concern for data center operationsin US• Toronto has a large data center talent pool and has low risk from naturaldisasters making it favorable for data center investments• Proximity to US has also attracted many data center investments in the region• Availability of networking and power infrastructure is high in TorontoCanadaChileTorontoSingaporeMalaysia• Tax incentives by the local government has decreased the cost of setting upnew data centers in Singapore• The city has reliable power supply and has skilled data center talent• The Infocomm Development Authority of Singapore (IDA) offers incentives tocompanies covering between 30% and 50% of capital expenses for retrofittingtheir data centers with new, energy-efficient equipmentMailinfo@talentneuron.comto access complete report
Large Data Centers Outside USGoogle, Microsoft, Samsung and Yahoo have large data centers outside of US12S No. Company Location1 Samsung London, UK2 Yahoo Singapore3 Google Hong Kong4 Google Santiago, Chile5 Samsung Gumi, Korea6 Google Changhua, Taiwan7 Samsung Beijing, China8 Microsoft Dublin, Ireland9 Facebook Luleå, Sweden10 Google Groningen, Netherlands11 Google Eemshaven, Netherlands12 Samsung Gwacheon, KoreaSource: Talent Neuron, Interviews with Industry Stakeholders, Company Websites
13,3506,5505,3003,6501,2501503,8002,4001,60013,75012,8004,10002,0004,0006,0008,00010,00012,00014,00016,000IT Infrastructure Talent across Key Global Data Center LocationsData Center Talent Pool AvailabilityAPAC locations like Tokyo and Hong Kong have a large IT Infrastructure talent pool which makes themfavorable for data center operations13Source: Talent Neuron, Interviews with Industry StakeholdersAmericas EMEA APACMailinfo@talentneuron.comto access complete report
020406080100120140160180USDThousandsMin Median MaxData Center Costs Across Various LocationsEmerging non-US data center locations such as Amsterdam, Dublin, Singapore and Hong Kong havelower salary costs which help in lowering data center operating costs14Source: Talent Neuron, Interviews with Industry StakeholdersIT Services Salaries across Key Global Data Center LocationsAmericas EMEA APACMailinfo@talentneuron.comto access complete report
Government Incentives to Data Center CompaniesGovernments often provide tax incentives and lower energy costs to attract data center investments15Source: Talent Neuron Web Crawling and Analysis• Swedish government provides cheaper energy and subsidies to encourage companies to setupnew data centers• In Australia, some state governments provide longer leasing terms to attract data centercompanies• In Poland, the government provides cash grants and tax incentives• In Canada, the government offers low taxes, low utility rates and economic incentives for greeninitiatives• Singapore introduced new tax incentives to help data center operators offset the fixed capitalexpenditure incurred• Few state governments in US provide sales tax exemptions on computer equipment and software• Some state governments also provide electricity at lower costs along with property taxexemptions