Influencing Factors on Global Data Center Location Selection|Idcnova-Media|the gateway to China data center market

A data center is a place where specific equipment is used to transmit and store data and information on the Internet. The scale of a data center is measured by the energy consumption of equipment. The larger the scale, the higher the operating cost. Determining the location of a data center is one of a company's key decisions as it relates to a company's development strategy and goals. Any discussion of data center location will consider the factors such as clean energy supply, ICT, data center tiers, etc.

Therefore, the management of the enterprise must provide the total cost of ownership, long-term and short-term goals to make relevant site selection decisions.

Analysis of Factors Affecting the Location of Global Enterprise Big Data Center

In reality, there are many factors that influence the location of an enterprise data center, and all of these factors should be viewed from a strategic perspective, as the focus of an industry today may change every 3-5 years; And every 7-10 years, it is necessary to adjust the influencing factors of global data center location or update to adopt new technologies. In the following, the influencing factors of global data center location are explained in detail:

1. Geography: The most important factor

The geographic location of the data center should be fully considered at the outset of the decision. Factors that need to be analyzed in the alternative address include:

Low probability and frequency of natural disasters (avoid floods, hurricanes, tornado-prone areas, etc.);

Environmental hazards (the extent to which the data center affects the environment in which it is located);

Climate factor (whether there natural (free) air cooling for the climate of the data center alternative address -- a very good resource)

Other factors: clean environment, as convenient and remote as possible, and its geographical location should be conducive to transportation and communication.

2. Power and energy supply: the local water, electricity and supporting facilities conditions

The business characteristics of the data center, and the requirements for quality and capacity determine the data center's requirements for the local power supply capacity. The power supply must be sufficient and stable, because it is one of the operating cost of the data center facilities.

3. ICT infrastructure:

The communication problem of the data center is also one of the most important components. When selecting the location of the data center, various factors need to be considered from the perspective of communication infrastructure. For example, the distance between several phases of optical fiber trunk lines and the location of the data center. This will help gauge the exact data required to go from the fibre backbone to the location of the data centre, the type of fibre, which affects transmission speed, the type of communications service provider in the location and the service models it supports, latency factors, transmission and delivery delay time will also be an important factor.

4. Related Policy (e.g. tax rate)

The policies provided by the local government, a good policy environment will be conducive to the formation of a base climate, and promote the selection and settlement of customers. It mainly examines the local economic and cultural development level, scientific and technological education environment, convenient transportation conditions, human resources supply and level, etc. As a concentrated embodiment of information technology, data centers have very high requirements for various social resources.

Another important aspect is the policy tax rate of alternative locations, including property tax, corporate tax, and sales tax.

5 Building

Construction costs play an important role in building a data center in any particular location. Before making a data center location decision, companies should consider the maturity of the construction industry in the region, whether they have experience in data center construction, and related buildings. Whether the technology is in place, whether the local workers are in place, and whether the labor cost is within the affordable range of the enterprise.

6 Transportation

The availability of various modes of transportation is also one of the factors influencing the location of the data center. The equipment of the data center must be delivered, and the workers and related suppliers also need convenient transportation to reach the location of the data center.

7. Cost factors of construction and transportation

Costs involve multiple factors such as local planning and land prices, housing construction prices, lease and property prices, network communication costs, electricity prices, water prices, labor costs, and local consumption levels. Even the cost of living where the data center is located should be taken into consideration.

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