The Critical Mantra for Data Centers: Location, Location, Location

In the real estate world, the mantra "location, location, location" reigns supreme. But this adage holds surprising weight for another critical infrastructure: data centers. Gone are the days when a data center's placement was an afterthought. Today, choosing the right location can significantly impact your bottom line, sustainability efforts, and even disaster preparedness. What does Location, Location, Location mean for Data Centers?

1. LOCATION of your data - Edge vs. Cloud: Finding the Sweet Spot

The first "location" question revolves around where your workloads reside: on-premise, at the edge, or in the cloud? Edge computing brings processing power closer to data sources, minimizing latency for real-time applications like autonomous vehicles or augmented reality. Cloud computing, on the other hand, offers scalability and flexibility, perfect for non-critical workloads.

The optimal location for your data center hinges on a cost-benefit analysis. If latency is crucial, edge computing might be the way to go. But for less time-sensitive tasks, the cloud's scalability could be more cost-effective. Many companies opt for a hybrid approach, placing latency-sensitive data at the edge and leveraging the cloud for the rest.

2. LOCATION and proximity to renewable energy- Powering Up with Renewables

Sustainability is a growing concern for data centers, notorious for their energy consumption. Here's where the second "location" factor comes in: proximity to renewable energy sources. Data centers situated near hydroelectric dams, geothermal plants, solar or wind farms can significantly reduce their carbon footprint.

Beyond environmental benefits, renewable energy offers cost advantages. Traditional energy sources like coal or natural gas are subject to volatile prices, while renewable energy costs are potentially more predictable. Furthermore, some regions offer incentives for data centers that utilize renewable sources, making the location even more attractive.

3. LOCATION of the Physical Landscape- Mitigating Risks and Optimizing Operations

The final "location" consideration delves into the physical environment surrounding the data center – from the traditional factors like natural disasters and climate to the ease of access to reliable and secure infrastructure. Building a data center in a flood-prone area or earthquake zone is a recipe for trouble. Choosing a location with a low risk of natural disasters minimizes downtime and potential data loss.

Climate plays an increasingly important role. With rising temperatures, extreme heat or cold can necessitate additional cooling or heating systems, adding to energy consumption and cost. Ideally, the location should have a relatively temperate climate, minimizing the need for extra temperature regulation. And of course, access to reliable infrastructure is crucial. A data center with limited access to fiber optic cables or a weak power grid will face performance challenges.

In today's data-driven world, data centers are the backbone of our digital lives. By prioritizing location at the outset, businesses can ensure optimal performance, minimize environmental impact, and safeguard their critical data. Where will you place your next data center? No doubt you’ll consider these three principles: location, location, location!

For some examples in various stages of deployment and sustainable solutions based on location:

Deep Green: Provides provide free hot water to swimming pools, district heating systems and other industries. https://deepgreen.energy/

ClusterPower: 200 MW data center produces its own electricity using an innovative combined cooling heating and power system. Offering high density solutions at a PUE of 1.1 https://clusterpower.com/

Nautilus Data Technologies: Offers water-cooling technology centered on sustainability while delivering optimum performance and energy efficiency. https://nautilusdt.com/

ECL: Offering 3D-printed, hydrogen-powered off-grid data centers. https://www.ecldc.com/

And for further reading on physical locations from Japan(#10) to Sweden (#1): https://datacentremagazine.com/articles/top-10-sustainable-locations-for-data-centres

And policy that is trying to keep up with capacity and demand Virginia (#7):

https://www.datacenterdynamics.com/en/news/virginia-lawmakers-propose-new-bills-limiting-data-center-development/