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The Impact of Data Centers on Local Economies
Although each data center’s design - and the decision of where to locate it - differs according to the needs of its end user, a potential data center location must offer two things to even be considered: a reliable, high-capacity power supply and fast, diverse communications connectivity. Additionally, natural hazards and security issues must be taken into consideration.
When it comes to power, operators of data centers need to not only analyze and monitor their energy usage, but also constantly evaluate their energy procurement. Fluctuations in energy prices can play havoc on operating budgets, affecting the data center operators’ and their clients’ bottom line.
Keeping all these factors in mind, those seeking data location sites may be able to procure generous incentives offerings from their host communities. Although these centers do not create as many permanent jobs as other types of projects, the capital investment made by data centers can be quite substantial, justifying large incentives offerings.
Gerri Gambale, Editor |
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John Lenio, Economist and Managing Director, Economic Incentives Group (EIG), CBRE
Although they do not create as many permanent jobs as other types of projects, capital investment in data centers can be quite substantial, justifying large incentives offerings.
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Bob Marsh, Director, Turner & Townsend Ferzan Robbins
Each data center’s design will vary according to its end user, and each developer will have a different mix of priorities — from baseline cost to security and transport links — ensuring that no two projects will be the same.
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Will Steffens, Principal, Sugarloaf Associates LLC
Data center operators need to not only analyze and monitor their energy usage but also constantly evaluate their energy procurement.
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Rajan Battish, Director, Mission Critical Group, RTKL
While power, connectivity, and cooling systems appear to be the primary concerns, natural hazards and other factors must also be evaluated.
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Tracey Hyatt Bosman, Managing Director and Midwest Practice Leader, Biggins Lacy Shapiro & Company
Although there is no perfect data center site, by vetting prospective sites to see if they meet specific requirements, a company can find one as close to ideal as possible.
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Thomas Traugott, Senior Vice President, Cassidy Turley
An understanding of the data center marketplace and its supply/demand dynamics will help both site selectors and their attractors move beyond the checklist and find the right fit.
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Editor's Picks: Data centers
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