Data Center Boom Reaches Smaller Cities

Interesting article yesterday about the growth of data centers.

Corporate demand for data centers is likely to remain strong for years to come, and cost issues will lead many companies to build new facilities in smaller markets in the center of the U.S., according to John Boyd, president of The Boyd Company of Princeton, N.J.

Data center projects are “the fastest growing field in corporate site location,” according to Boyd, an expert in corporate site location who for 30 years has been helping America’s best-known companies plan real estate expansions. Many of these companies will build their own facilities, Boyd said. “The inventory of available sites is extremely low,” said Boyd. “We tell our clients to focus on the fundamental cost issues and not to key on existing facilities.”

Those cost issues will spur data center development outside of the major Internet markets and “NFL cities” that have thus far been home to the lion’s share of major data center projects. In recent months Boyd has released two studies on the cost of operating financial and healthcare data centers in U.S. markets.


What would it take to make New Brunswick the hub for data centres in Canada and for the northeast?

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0 Responses to Data Center Boom Reaches Smaller Cities

  1. Trevor M. says:

    1) LAN Infrastructure (Northern NB)
    2) More focus on IT programs in our Universities and Colleges
    3) A greater understanding of privacy laws
    4)Access to economical power souces

    David,

    I think we do have a lot of the neccessary elements that organizations look at when setting up a data center. We have a low cost of real estate and low taxes.

    One of the biggest hurdles we could face in trying to attract US organizations is the regulation around privacy laws. Many profesional services firms I deal with in the US have setup their IT dept in rural areas that are just outside their major urban center(s). They feel the need to stay in the same state/country because of the uncertainty of new laws like Sarbanes-Oxley.

    That being said, I don’t see a problem with going to Canada’s financial centers and making a pitch for them to setup data centers in areas like Bathurst, Shediac, Sussex or Dalhousie…

    I’ve always wondered why NB didn’t try to attract this type of econ dev?

  2. Anonymous says:

    If you look at Canada’s history you’ll know that’s a far sell. There are rural areas aplenty in southern ontario, and of course ontario has the clout to say “if you’re going to setup elsewhere, there’s all of Northern Ontario”, which is virtually that country’s version of the maritimes.

    But once again its too bad stuff like this isn’t read by the people at Charles’ blog. Imagine once two refineries are operating in Saint John, imagine trying to get a corporation to create a data center there! If they had any brains at all they’d laugh at the idea. As Canada’s health care becomes more privatized companies have to look at the health effects of the locations. New Brunswick has always been moderately polluted, but Saint John will be “right out”.

    As for the feds, once again, it takes political pressure to effect change. Without that, what they hear is Ontario’s complaints about equalization, and that’s where the representation is.

    THAT won’t change until PEOPLE change. That’s you and me folks. Don’t expect political favours to be handed out without work. The BQ took years to build up, the reform took years to build up, and in the maritimes, it hasn’t even started.

  3. Anonymous says:

    I always wondered why the Province of NB never tried to attract data centers in the province after their success with call centers. It would seem to be a lot easier than trying to develop and invest in small software companies with very high risk of failures and little to no available startup financing, not to mention the very small base of development talent and expertise present in this area.

    The telco infrastructure is developped adequately, the universities form a fair amount of systems and network IT workers and they would bring high paying secure jobs in the province. I say go for it Business NB, bring us a Google, IBM or Yahoo mega Data Center!

  4. Anonymous says:

    I agree with the last comment that we are postioned to gain some of this business, but chnages do need to be made is we are to have an expansion of data centers like the call center boom of the 90’s.