Identifying the right location for the data center is an important step when cost is a factor. Given the amount of data companies create, consume, store and manage, a low cost approach to data center services is not realistic. Instead, vendors need to focus on the value delivered. Fortunately, that value improves when data center operators focus on energy efficiency.
A recent DatacenterDynamics report explores different locations offering low cost deployment and stable environments. Cushman & Wakefield and hurleypalmerflatt’s Data Center Risk Index shows that Nordic countries new to the index perform well, pushing more established market players back on the list.
The U.S. remains the optimal location for data center services seeking the most stable location, with the U.K. a close second. Germany maintains a third place listing, while Iceland made its debut at number four. Finland maintains the ninth spot, with Norway at 12th.
Qatar maintains a sixth place spot for data center services, up one position from last year. Qatar topped Middle East locations due to its lower power price compared with other countries on the list and GDP. This location also offers a low risk of natural disasters and low corporation taxes.
Hong Kong, at seventh place, offers strong telecommunications infrastructure, but is notorious for poor sustainability and energy security. South Korea, at 13th place, offers low energy costs and an economy strong in knowledge, but the country also has a high risk of natural disasters.
The Index, when listing countries for optimal data center services, takes into account availability of international bandwidth, energy costs, corporation text, political stability, the cost of labor, sustainability, risk of natural disasters and GDP. Energy security and population education level were added to the ranking for this year.
Verne Global recently opened a new colocation facility in Iceland to support its data center services, The company uses a chillerless cooling system and relies on 100 percent renewable power. Iceland received the highest scores for water availability and sustainability, making it an optimal location for this data center build-out.
According to analysts at Cushman & Wakefield and DatacenterDynamics, the countries on the Index are making an impact in the data center services market, yet most facilities will still serve as a secondary data center location. Outsourcing is typically used for storage purposes and not primary data center services to support an organization’s operators or applications.
The Industry Census conducted in July 2011 suggests the Nordics is the smallest of the developed European markets for data center services. Only 35 percent of Nordic companies participating in the organization’s research outsource data center operations. Researchers involved in the process, however, suggest that all indications point to continued growth in the number of facilities and investments.
Edited by Carrie Schmelkin