I had the opportunity to speak with Geoff Hampson late last year regarding the data center market. If you don’t know Geoff, he has been the captain of the ship at several retail brands including Peer 1 Network and CoreLink Data Centers. Geoff had a few things to say about the current environment, “It used to be, if you build it, they would come. Now, there’s more money coming in, and it’s more important to pay attention to the competition and timing.”
We couldn’t agree more. In fact, we have ranked what we believe are the top factors to consider when pursuing a new development, in order of priority:
1. Supply & Demand (Timing)
2. Sales and Marketing
3. Incentives
4. Low Cost Power
5. Proximity to Major Market(s)
6. Low Property Taxes
7. Low Rent
8. Time to Market
9. Operation Control (Security, Operations, etc.)
10. Resiliency / Design Standard
It’s interesting to note that only #10 above has to do with technical specifications. Â Further, technical specifications are deterministic and therefore relatively easy to control.
Thank you Geoff for your comments – we look forward to reading about your next venture(s).
