Even The Cloud Needs A Roof: Some Numbers On Datacenters

(Above: A peek inside Facebook’s Prineville, OR server room.)

A great piece in Chicago Real Estate Daily focuses on the issue of datacenters; how they’re leased, bought, valued and provisioned.  Jim Kerighan, who spent three years with Grubb & Ellis as head of datacenters befiore moving to Avison Young this week, says the market for datacenter space is unique and growing.

Why would a tenant want to be in Elk Grove Village versus North Carolina? What would be the factors that would make one better than the other? 

It depends on the client. They will look at their power needs, the cost per kilowatt hour, they’ll look at the various tax incentives that are provided by a municipality whether it be by the state or locally. The larger companies, the Googles, the Yahoos, what is driving their decisions is vastly different than what might be driving a smaller user. 

The bigger companies often have multiple data center sites so they are less sensitive to anything that might be a natural disaster or other type of disaster because they are backed up by other properties around the country. But they are driven by things like the cost of power. Illinois doesn’t charge personal property tax on servers, so that’s a pretty big, important key factor, while other states may provide a discount on the tax on the electrical power and then there are other states that are going to charge less money for power. 

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One Comments

  • Paul Martis

    February 27, 2012

    How much land would a large data center need and would they
    look to lease vs own?


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