data-center-build-out

As 2017 begins, the data center industry is in a position for higher levels of growth while obtaining inexpensive and clean energy sources. The new year provides an opportunity to do a data center build out or colocation project with optimized infrastructure and scalability options. Here are three reasons to plan your project for 2017.

Reasons to Plan Your Data Center Build or Colocation Project for 2017

The need for more data storage increases daily. 2017 is the year to take advantage of new data center infrastructure trends and perform a data center build out  project or do a data center fit up to optimize data center infrastructure in an existing space.

There are three reasons to build out in 2017. The current economy is optimal for conserving finances. There are better areas to take advantage of natural resources for powering and there are new technologies to implement in your data center.

  1. The Economy

Overall, both revenue and growth are up in the United States, and globally as we enter 2017.

The U. S. dollar is at a 13-year high and the stock market is at an all-time high, which historically facilitates business growth in every industry.

While the data center industry will benefit from the economy in 2017, previous financial trends suggest that the upturned market could eventually cause interest rates to rise for data center equipment financing other types of loans.

Average mortgage rates jumped from 3.57% to 3.94% back in November. As the interest rates rise, the cost of a data center build out project could become greater, thus early planning is key to saving money.

As mortgage rates increase, this may also increase the price of rent when leasing a colo.

  1. Resource Availability

Many data center leases are coming to an end and companies are looking to move to spaces with clean energy and less expensive power costs.

One trend in 2017 is to expand both thermal management and powering into sustainability by considering location and resource availability.

Businesses have started to relocate in areas with abundant water supplies, using hydropower for their data centers, while other businesses have located to areas with access to clean energy from wind farms Broth of these options provide a better choice environmentally to power and cool data centers.

Northern Virginia continues to boom with data center builds.  The area offers less expensive/green utility options.

Ashburn, Virginia, located in Loudoun County has consistently provided power rates that are 28% below the national average.

Manassas, Virginia, located in Prince Edward County has started to draw big name businesses by offering even lower taxes and power costs than Loudoun County. Businesses building in Manassas have also sought out clean energy for their data centers from wind farms.

Because of these incentives, colocation space could become highly sought after in comparison to other areas and may be difficult to find.

  1. Product Availability

New technologies are emerging to reduce the carbon footprint, weight, and total costs of valve-regulated lead-acid (VRLA) batteries in 2017.

Many companies have found the best replacement option to be lithium-ion batteries because prices are decreasing while the construction and battery chemistry continues to advance.

Lithium-ion batteries are being scaled to handle both row-level and room-level requirements.

As other businesses build out their projects, the lead times will increase. This will halt projects that were planned later as companies must wait longer for electrical gear, batteries, busway, and generators.

Considering that the economy is at a peak financially, the time to plan a data center build out or colocation project is now. As time passes, interest rates could fluctuate, prime locations could get leased, and products will take longer to order.

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