Post 2 – The Competition
As we think about who we would compete with if Page County were to have a data center, let’s focus on just two nearby companies with data center facilities. I've heard that there may be existing buildings in industrial parks down in Harrisonburg along I-81 that may be suitable for data centers, but I'm not sure about them. We can get an idea of what to expect, not only in building a data center here, but in finding customers for it, from Digital Realty Trust and Terremark, who operate data center facilities in the Ashburn and Culpeper areas.
• Digital (NYSE Stock Symbol DRT; http://digitalrealtytrust.com/ ) has pioneered a modular development process that not only reduces the construction/occupancy cycle from as long as 3 years (which is what we can likely expect for Page County) to one that can be as short as six months. Digital is poised to expand their facilities in the Dulles area, already acquiring the needed land and infrastructure connections.
• Terremark (NASDAQ Symbol TRMK; http://www.terremark.com/technology-platform/nap-of-the-capital-region.aspx ) already has a secure data center – “outside the blast zone” – up and running, ready to accommodate clients requiring space as large as 50,000 square feet or more.
These are large, specialized organizations with quick and easy access to the financial resources needed to build these facilities. Can Page County really compete with them in this marketplace? You can’t bet the farm and get into this market speculatively – without signed agreements to occupy the space before it is built, especially if you are new to the market, like we are.
And we don't even have the infrastructure trunks extended to the planned locations. What are the schedule and cost implications of that issue?
Next Post – The Costs
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