So just what are Tax Incentives Worth – Georgia?

As everyone knows,tax incentives and low power costs are big drivers for data center site selection.  We have talked about power costs before on our blog (and will likely do so again) but have not spent much time on what tax incentives may be worth.

First most states offer incentives only if you are a real catch (i.e. biggest of the big).  Georgia’s minimum spending qualifier is relative low and as a result Georgia

. . . →Read More:So just what are Tax Incentives Worth – Georgia?

Colocation – Concerned over long term fundamentals – Think Again (Part IV)

The game changer is “dark fiber”.   Fiber is nothing more than a means of getting to the internet or is it?

There are a lot of misconceptions about fiber,from you must have two or more fiber providers,to fiber is fiber,to there is an overabundance of fiber,its everywhere!

What is the internet anyway?  First it’s a business that is very similar to TV.  Same product.  You may think that the product of TV is entertainment and news.  Wrong.  It’s the audience and the clients are the advertisers.  Today,television averages only 15 to 20 minutes of real content per hour and is dominated by realty shows,contests . . . →Read More:Colocation – Concerned over long term fundamentals – Think Again (Part IV)

Colocation – Concerned over long term fundamentals – Think Again (Part III)

Containers are a GREAT concept but they are a very poor substitute for real estate.  Let me explain.

Suppose that I could issue an RFP and have a

. . . →Read More:Colocation – Concerned over long term fundamentals – Think Again (Part III)

Southeast Region Update

National Highlights

  • Google is reportedly purchasing 111 Eighth Ave. in New York for a 5-percent capitalization rate.
  • Allied Fiber is nearing completion of  its 1,200 mile + dark fiber platform between New York,Chicago and Ashburn. Engineering work on Phase 2 (Ashburn -Knoxville -Chattanooga -Atlanta -Jacksonville -Miami) will commence in early 2011. Allied is completing the designs of several co-builds from both carrier and non-carrier network operators.


  • Nearly 500,000 square feet of collocation space will become available through new development and lease expirations.  Atlanta has a total of more than 2.5 MSF of internet data center space.
  • Quality Technology . . . →Read More:Southeast Region Update

Facebook and Carbon Consciousness

Facebook is currently building a data center in Prineville,Oregon and recently announced that they will build a new data center in Forest City,NC.  Facebook has been criticized for not being more carbon conscious in choosing Oregon for its first facility. 

. . . →Read More:Facebook and Carbon Consciousness

Wholesale Colo Lease Rates:$/kW vs. $/sf

Landlords have been quoting wholesale collocation rates in $/kW for some time now.  Yet its still confusing for many people,especially commercial real estate executives who have been dealing in $/sf/yr for a long time.  So,here is a tool that converts $/kW/mo into $/sf/yr. 

. . . →Read More:Wholesale Colo Lease Rates:$/kW vs. $/sf

Riding the Light

One of the benefits that colo providers sell is  “multiple carriers on site”which results in higher availability and less expensive network communications. 

Tenants often assume that when the landlord provides that list of a half dozen or more carriers that they have separate and diverse carrier routing.  This is not always true and may be more often false then true. 

. . . →Read More:Riding the Light

Collocation! Is there anything else?

Just when you thought it was safe to get back into the water,from small requirements (5,000 to 10,000sf) to mid size and larger requirements (10,000 to 100,000sf),we are seeing more companies looking for built-to-suit (BTS) lease opportunities. 

. . . →Read More:Collocation! Is there anything else?

Show me the money! Part I

Over the last couple of months,we have evaluated a couple of wholesale deals that were pretty interesting.  For obvious reasons,we will not share who the clients were or who the prospective landlords were.

Our search was based on 1mW or more and ten year deals.  We looked at the four major costs items;rent,energy &energy efficiency,network connectivity and migration costs.

On one deal,our annual lease cost ranged from $2.9 million to $5.5 million.  We surprised even ourselves on this one.   A $2.6 million spread between high and low.  Taken over ten years this represents a NPV differential of almost $18,000,000.  

It’s easy to guess . . . →Read More:Show me the money! Part I

Southeast Region (Apr 2010)

National Highlights

  • Phoenix (enterprise users),Northern Virginia (social networking and gamers),and Chicago (hosting) led leasing activity during 1st quarter.
  • There was over 400,000 square feet of wholesale data center leases signed in Q1,2010.
  • FIFA World Cup sends Content Delivery Network companies scrambling for infrastructure and connectivity from Dallas to the world.


  • With more than 20% of Fortune 100 companies having a data center presence in Metro Atlanta,the area has long been a destination of choice for enterprise data centers.
  • Wholesale colocation in the Atlanta Metro area is dominated by Quality Technology Services.  With the company’s Suwannee facility full,and the . . . →Read More:Southeast Region (Apr 2010)