Tag: future proofing

In business, the adage location, location, location has always been a concern for any physical structure. This is true of data centers as well. When it comes to your next data center location, where do you build?

Key Takeaway

By the end of this article, you’ll know:

• Safety and network proximity considerations when picking locations.
• Cost and talent considerations when picking locations.
• The importance of locations with access to renewable energy sources and innovating cooling methods.

Jump to Section:

• Data Center Starts
• Safety and Network Proximity
• Taxes, Labor, and Incentives
• Going Green is the New Black
• Key Takeaways

There are several prime locations around the country for the mega data centers that are popping up everywhere, but there will always be a need for local data centers, and as the need for more storage and faster data rates increases, so will the size and configuration of those data centers. But what influences location? There are two primary factors: safety, and network exchange proximity. Let’s take a closer look.

Data Center Starts

AOL started in Northern Virginia with its first data center. As the area grew, the communities invested in technology and network hubs that attracted more tech giants. In fact, Microsoft bought land in the Loudoun area for around 1.4 million per acre just this year, showing that the value of data center land in that area will not be taking a dive anytime soon.

The Pacific Northwest is also a data center hub, with Amazon leading the way along with several other large tech companies. One reason is that water is plentiful in these wet areas and can be harnessed easily for cooling purposes.

That was just the start, of course. Since then, locations have popped up all over the country.

Safety and Network Proximity

But you can’t just build data centers where you have access to water, and as the Microsoft story illustrates, building near other data centers may be cost prohibitive for many companies. While the Pacific Northwest is also a great location for other reasons, data centers must be built in other places.

Where is the ideal place to build? Well, as with many other things, it depends, but of course the two primary concerns above must be kept in mind. For instance, you could build in the middle of nowhere, where land is cheap, water is plentiful, and there are few weather-related concerns. But if you don’t have a solid connection to the network, your data center will never work.

Taxes, Labor, and Incentives

Taxes, labor, and incentives are all normal costs and benefits of doing business in any given location. For instance, in California the tax laws can be complicated, labor regulations are more restrictive than in some other neighboring states. However, some counties or municipalities offer tax incentives to data centers located there.

In addition, many will be close to network hubs, and will also have talent to draw upon when the time comes to hire new employees. This can be another vital factor in data center location. The right talent can be hard to find in the tech industry, and nearby universities, an appealing community surrounding the data center, and other factors can heavily influence recruiting.

It’s a good idea to keep things under wraps when first negotiating a data center site. Otherwise, bidding wars, protests from community members who may not want to see a data center in their area, and others can derail the best plan before it even gets a chance to get started.

Another consideration is power and access to sustainable resources.

Going Green is the New Black

A huge consideration for data centers is their environmental impact. Choosing a location with a high solar score, for example, allows a data center to operate primarily on renewable energy. The same is true for nearby hydroelectric and wind energy. One of the primary things driving this trend is consumer interest.

Because the consumer wants to do business with companies investing in renewable energy, those same companies partner with data center partners who share the same values. It all comes down to energy and where it comes from.

In this way, companies have gotten creative, locating data centers in cooler northern climates, placing them underwater, and locating them in caves and other areas underground. All of these efforts are attempting to take advantage of natural cooling factors to save energy and improve efficiency.

As much as possible, the location of a data center should be coupled with environmental responsibility and sources of renewable energy.

Key Takeaways

Does all of this sound a bit complicated? It can be. Also there are simply times when you are limited in your selection by geography, local zoning, and the land available to you. But choosing a data center location, much like choosing the location of any other business, will depend on your individual circumstances.

Once you are ready to build, we here at AnD Cable Products can help you with a variety of products to help you maximize your space, get the right cables for your data center, provide labelling products, and even help with physical layer network security and monitoring.

Have questions? Contact us today. We’re happy to talk about your needs for new data center builds or simply moves and changes in current facilities. Join our email list to get the latest news and data center tips. No spam, ever.

Shop Our Power Cable Range

FAQs

What are the primary factors that influence data center location?

The two primary factors that influence data center location are safety from natural disasters and other threats, and network exchange proximity to ensure fast and reliable data transmission.

Besides safety and network proximity, what other factors are considered when choosing a data center location?

In addition to safety and network proximity, other important factors include local taxes, labor costs, and government incentives. The availability of a skilled workforce and the overall appeal of the community are also significant considerations for hiring and recruiting.

Why is environmental responsibility a growing concern for data centers?

Data centers have a significant environmental impact, and there is a growing trend to choose locations that allow for operation using renewable energy sources like solar, wind, or hydroelectric power. This is driven by consumer demand for businesses that prioritize sustainability.

How can a data center leverage its location for environmental benefits?

Data centers are being strategically located in places that offer natural cooling advantages to reduce energy consumption. Examples include building in cooler northern climates, underwater, or in underground caves to leverage natural temperature regulation.

Why is it important to be discreet when initially negotiating a data center site?

Keeping negotiations for a new data center site under wraps is crucial to prevent bidding wars for land and to avoid potential protests from community members who may not want a data center in their area. This discretion helps ensure the project can proceed smoothly without unexpected obstacles.