Focus on Industry: Data Centers and Essential Considerations for Site Selection

Factors that need to be considered when selecting a site for your data center

Tenant representation
Data Center

Data centers play an important role in today’s digital age, and will continue to grow in importance as businesses and organizations rely more on data processing and analytics for their operations and marketing. The efficiency, reliability and the overall performance of a data center will rely heavily on the selected site. In this post we look into factors that need to be considered to ensure that the chosen site fulfils current and future needs of the organizations.

  1. Proximity to Users

A key selection criteria is the proximity of the data centre to its users. Placing it close to the end user will ensure faster data transfer and improved user experience. This is especially important for businesses whose operations require real-time interactions, such as online-gaming or video conferencing. 

  1. Cost of Power 

Data-centres are heavy users of power, and therefore the availability and cost of power is a crucial consideration in site selection. Organizations should ensure that their data center has a stable power source and that the cost of electricity in the area is not high. Organizations with sustainability at the heart of their business model should also consider regions that have access to renewable energy sources and offer incentives for their use – this can have a positive impact on long-term costs. 

  1. Local Climate 

Efficiency of data centers can be dramatically impacted by the local climate and environmental conditions. Some regions may pose an increased risk of natural disasters such as earthquakes, floods or wildfires, which pose an operational risk, as well as higher insurance costs. 

Further, choosing a cooler climate will mean lower cooling costs for the machinery. There are innovative ways to utilize natural cooling methods to enhance the sustainability of the data center that tenants can consider. 

  1. Security

Data centers store sensitive and valuable information, which makes security a key priority when evaluating the suitability of different sites. Analyse local statistics, such as crime rates, proximity to emergency services, and security measures currently in place. 

  1. Scalability 

Choose a site that accommodates for future growth, this will save you looking for a new location a few years down the line. Consider the availability of additional space for expansion, as well as the ability to upgrade systems, such as power and cooling. 

  1. Workforce Availability 

Assess the availability of a skilled workforce with the expertise required for the management and maintenance of your data centre. It is also worth looking into cost of living and average salaries, as it will enable you to estimate the cost of labor in the location. 

Selecting a site for your data center is a complex decision that relies on many factors. Our brief guide has offered a starting point for the task, but you should always consult a site selection expert to help you choose a location that will contribute to the long term success of your data center.

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