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What Impact Does Site Selection Have on the Cost of Developing and Operating a Data Center?

Jennifer Reininger shares ideas before DatacenterDynamics conference.

From spending sometimes hundreds of millions of dollars to build them to paying for their enormous use of energy, data centers can be hugely expensive. They are “dramatically more expensive than an office or industrial building,” according to a report from JLL.

As the need for data centers rises, how can companies find cost savings within these massive investments? Site selection for hyperscale, multi-tenant and more is a huge factor. Building them in rural counties and away from big cities in the United States will boost savings a number of ways, explains ESD Senior Consultant Jennifer Reininger.

“Smaller markets offer tax advantages and lower build costs,” said Reininger, who will offer her insights during “When Building a Billion-Dollar Campus, Can a Tier 4 Location Be as Valuable as a Tier 1 Market?” during a virtual DatacenterDynamics event on Wednesday, Dec. 2.

“They’ll be able to scale their sites better because there is more land, and they can prepare for the long-term,” she added. “They won’t have to build out multiple infrastructures – it will all be in one campus. The corporate entities developing hyperscale data center campuses will head out first and the multi-tenant data center developers will follow.”

Reininger noted this migration will be harder in Europe and Asia. The power infrastructure is significantly constrained in Europe, while in Asia – especially the biggest country, China – acquiring land can be an issue along with the way the national government operates.

Contact Paul Schlattman for more information on Data Center Development or other data center issues.

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