Showing posts with label Data Centers. Show all posts
Showing posts with label Data Centers. Show all posts

Tuesday, October 5, 2010

Hunt Midwest seeks tenant for SubTech underground data center space Read more: Hunt Midwest seeks tenant for SubTech underground data center space -

SubTech Data Center is a ground-level facility built inside solid limestone,
offering security unmatched by any other data center facility. SubTech is located in Kansas City, which provides one of the lowest utility costs in the country and is ranked #2 in the United States for enterprise data center operating affordability. SubTech's data center solutions are reliable and flexible, offering maximum power and connectivity for your robust data center needs.
Site plans by
http://www.totalsitesolutions.com/
Expanding or needing data center space? SubTech has millions of square feet available for IT and raised floor area. The facility provides clients with data center space ranging from 5,000 - 100,000+ square feet with 16' clear ceiling heights throughout. The initial 100,000 s.f. can be built out in 20,000 s.f. modules. Click here to download our site plan. http://www.subtechkc.com/site_plan.pdf

Ora Reynolds (left), president of Hunt Midwest Real Estate Development, and Tammy Henderson, director of real estate marketing and governmental affairs, are preparing for when a portal (background) will be the front door to an underground data center.

Hunt Midwest Real Estate Development Inc. is getting into the data center business — or rather, under it. Subtechkc

The Kansas City-based company plans to build a 40,000-square-foot data center in Hunt Midwest SubTropolis. The massive underground business complex is roughly northeast of Interstate 435 and Missouri Highway 210 in Kansas City.
Construction on the estimated $30 million SubTech project will begin once Hunt Midwest signs a tenant or tenants for the first 20,000 square feet, company President Ora Reynolds said.
Reynolds said the company originally planned a 100,000-square-foot project but scaled back after an unsuccessful attempt in the summer to add state tax incentives for data centers to a bill aimed at retaining automotive jobs. Missouri is at a disadvantage, she said, because Kansas, Nebraska, Iowa and Oklahoma offer financial breaks for data centers.
“The investment in a data center is so much more expensive than a regular building,” Reynolds said. “The investment is so large you can’t do ‘If you build it, they will come’ if you don’t think you can compete.”
Reynolds said the company envisions a Tier 3 facility, meaning it has redundant power and cooling systems, with the ability to expand in 20,000-square-foot increments.
“The thing that we’re saying is the biggest advantage, and what makes us different, is we have 8 million square feet that has been mined out and has not been developed at the present time,” Reynolds said. “Somebody who’s out there and says, ‘I need 20,000 square feet now, but I know I’m going to grow and need 100,000 square feet in the next five years,’ we can accommodate them while somebody who has an office building wouldn’t let half the building stay empty.”
She said Hunt Midwest would be strictly a landlord, preferring to find a managed services/collocation firm to become the main tenant, subleasing rack and cabinet space to smaller companies or leasing entire data suites or powered shells — where the tenants install most of the technical infrastructure themselves.
The data center business has taken off in recent years as companies have looked for options to remotely operate or back up data networks.
New York-based Tier 1 Research said in a Sept. 23 report that demand has outstripped supply in many markets because the economy has slowed construction and financing of new data centers.
The underground data center is relatively new in the industry, despite the obvious increase in security and resistance to natural disasters.
Tier 1 analysts Jason Schafer and Michael Levy said in a separate report looking at the SubTech project that so-called data bunkers have had trouble attracting tenants in other markets because of the added complexity of supplying power and getting rid of excess heat and moisture.
They said that SubTech does have size and the ability to grow in phases going for it but that it will run into the same skepticism other operators encounter.
“This isn’t to say that there isn’t a market for a secure underground data center facility,” they wrote. “It just fits the needs of fewer types of tenants that are likely comparing all data center providers.”
Cavern Technologies operates a 40,000-square-foot data center in the underground Meritex Lenexa Executive Park. Cavern President John Clune said the company has grown from four customers three years ago to 35.
“Our market has really taken off,” he said, adding that not having to construct an actual building and underground’s cooler air temperatures let Cavern compete on cost. “The economics of the underground allow us to provide more space for the money.”
Clune said that data centers typically charge as much as $1,200 a rack but that he charges $2,900 for 250 square feet — enough room for four racks.
“It’s when people come down here that the light goes on,” he said.
Numerous area companies operate their data centers, including some in underground space.
Overland Park-based Sprint Nextel Corp. has three data centers supporting network operations, with two built into earthen embankments, spokeswoman Melinda Tiemeyer said.
Other companies use underground caves to store computer data tapes.


What is SubTropolis?

SubTropolis was created through the mining of a 270-million-year-old limestone deposit. In the mining process, limestone is removed by the room and pillar method, leaving 25-foot square pillars that are on 65-foot centers and 40 feet apart.
The pillars’ even spacing, concrete flooring and 16-foot high, smooth ceilings make build-to-suit facilities time and cost efficient for tenants. A tenant requiring 10,000 to one million square feet can be in their space within 150 days. SubTropolis is completely dry, brightly lit, with miles of wide, paved streets accessed at street level.
Hunt Midwest SubTropolis sets the standard for subsurface business developments.

Read more: Hunt Midwest seeks tenant for SubTech underground data center space - Denver Business Journal

Monday, August 2, 2010

Innovations for the Data Center

6 Cool Innovations for
The Data Center


1. Fiber optics with a twist

The success of the HDMI cable in consumer electronics has proved that having a common cable that works with Blu-ray players, HDTV sets and just about any set-top box helps remove clutter and confusion. Intel has developed Light Peak following this same approach. It's fiber-optic cable that will first be used with laptop and desktop computers to reduce clutter and to speed transmission, but it could also make its way to the data center as a way to connect servers and switches.

The 3.2mm cable, which is about as thin as a USB cable, can be up to 100 feet long. Intel has designed a controller that will sit inside a computer, and cables are currently in production. Third parties, including Hewlett-Packard and Dell, will start making computers with Light Peak fiber-optic cables in them by 2011, according to Intel.

For data centers, Light Peak presents a few interesting possibilities. Fiber optics have been in the data center since the early 1990s, when IBM introduced its Escon (Enterprise Systems Connection) product line; it connects mainframes at 200Mbit/sec. Light Peak differs in that it runs at 10GB/sec., and Intel claims that the components will be less expensive and lighter-weight than existing fiber-optic products.

"Intel claims Light Peak will be less complex and easier to manage by eliminating unnecessary ports, and deliver the higher throughput required by high performance e-SATA and DisplayPort systems," says Charles King, an analyst at Pund-IT in Concord, Mass. "If the company delivers on these promises, Light Peak could simplify life for data center managers plagued by installing, managing and troubleshooting miles of unruly optical cables."

Success here will depend on "how willingly developers and vendors" embrace Light Peak and build products around it, King explains.

2. Submerged liquid cooling and horizontal racks

Liquid cooling for data centers is not a new concept, of course, but Green Revolution Cooling has added a new twist. For starters, the rack is turned on its side, which helps with cable management and makes it easier for administrators to access equipment, and the horizontal rack is surrounded by liquid. A new coolant, called GreenDEF, is made from mineral oil that is nontoxic, costs less than other liquid-cooling methods and is not electrically conductive like water, according to a GR Cooling spokesman.

"The liquid actually moves through the floor and circulates up through all of the computing nodes," says Tommy Minyard, director of advanced computing systems at the Texas Advanced Computing Center, part of the University of Texas at Austin. This means more-effective cooling because heat is moved away from the processors via cables on the sides and under the rack, he explains. Minyard is installing GR Cooling systems in his data center and expects a 30% to 40% savings compared to traditional air-cooled systems.

Data center cooling device

Green Revolution uses horizontal devices for racks, along with a new type of coolant, to reduce energy costs in a data center.

Minyard says liquid cooling has made a rebound lately, recalling the days when Cray offered submerged cooling systems, and he notes that even IBM is moving back into chilled-liquid-cooling some compute nodes.

Pund-IT's King says a major issue is that enterprises have fought the return of liquid cooling in the data center because of the high costs of implementing the technology and because it is unproven as a widespread option.

"Liquid cooling usually costs much more to install upfront than air cooling," says Mark Tlapak, GR Cooling's co-founder. "Compared to air, every liquid cooling system has some added nuance, such as electric conductivity with water-based cooling systems. " But, he says, "spring a leak in the water systems, and you lose electrical equipment." Still, for Minyard, GR Cooling is an ideal fit: His data center gravitates toward dense, powerful systems that pack intense power into small spaces, such as IBM blade servers and the latest Intel processors. The Ranger supercomputer, for example, uses 30kw of power per rack.

3. Several broadband lines combined into one

Enterprises can spend many thousands of dollars on fiber-optic lines and multiple T1 connections, but at least one emerging technology is aiming to provide a lower-cost alternative.

Mushroom Networks' Truffle Broadband Bonding Network Appliance creates one fast connection out of up to six separate lines, a technique known as bonding. The Truffle combines the bandwidth of all available broadband lines into one giant pipe, with download speeds of up to 50Mbit/sec., the company says. Internet access may be through a DSL modem, cable modem, T1 line or just about any broadband connection.

This helps increase overall throughput, and acts as a backup mechanism, too. If one of the "bonded" lines fails, the Truffle connection just keeps running with the other available lines.

Steve Finn, a television producer in Kenya, uses Mushroom Networks' appliance for a program called Africa Challenge that is broadcast to eight African countries. He relies heavily on broadband to produce the content and at one time paid as much as $4,000 per month for connectivity. Speeds vary depending on latency and traffic, but he says the bonded speed is generally about four times faster (four lines times the speed of each individual line), at about half the cost of one equivalent high-speed line.

Frank J. Bernhard, an analyst at Omni Consulting Group, says Mushroom Networks fills a niche for companies that do not want to pay the exorbitant fees for multiple T1 or T3 connections but still need reliable and fast Internet access. Other companies, including Cisco Systems, offer similar bonding technology, but at a greater cost and with more complexity at install, which means the technique has not yet been widely used.

4. Multiple data centers more easily connected

In a very large enterprise, the process of connecting multiple data centers can be a bit mind-boggling. There are security concerns, Ethernet transport issues, operational problems related to maintaining the fastest speed between switches at branch sites, and new disaster planning considerations due to IT operations running in multiple locations.

Cisco's new Overlay Transport Virtualization, or OTV, connects multiple data centers in a way that seems really easy compared with the roll-your-own process most shops have traditionally used. Essentially a transport technology for Layer 2 networking, the software updates network switches, including the Cisco Nexus 7000, to connect data centers in different geographic locations.

The OSV software costs about $25,000 per license and uses the maximum bandwidth and connections already established between data centers.

There are other approaches for linking multiple data centers, a Cisco technical spokesman acknowledges, including those involving Multiprotocol Label Switching (MPLS) or, before that, frame-relay and Asynchronous Transfer Mode protocols.

But unlike some of the older approaches, the spokesman explains, Cisco OTV does not require any network redesign or special services in the core, such as label switching. OTV is simply overlaid onto the existing network, inheriting all the benefits of a well-designed IP network while maintaining the independence of the Layer 2 data centers being interconnected.

Terremark, a cloud service provider based in Miami, uses Cisco OTV to link 13 data centers in the U.S., Europe and Latin America. The company says there is a significant savings compared with taking a "do-it-yourself" approach to linking data centers, due to reduced complexity and OTV's automated fail-over system that helps multiple data centers act as one if disaster strikes.

"Implementing the ability to balance loads and/or enact emergency fail-over operations between data centers traditionally involved a dedicated network and complex software," says Norm Laudermilch, Terremark's senior vice president of infrastructure. "With Cisco OTV, Ethernet traffic from one physical location is simply encapsulated and tunneled to another location to create one logical data center."

Virtual machines from one location can now use VMware's VMotion, for instance, to automatically move to another physical location in the event of a failure.

5. Priority-based e-mail storage

Communication is what drives a business, but too often the bits and bytes of an e-mail exchange are treated in the data center as just another data set that needs to be archived. Messagemind automatically determines which e-mails can be safely archived onlower-cost systems.

The tool analyzes all company communication -- tracking which messages end users read, delete or save -- and then groups them according to priority level.

Data center administrators can use that information to store e-mail based on priority level, which in turn can save money. For example, instead of storing all e-mails in one high-cost archive, messages marked as low priority -- based again on the end user's clicking behavior -- can be stored in lower-cost storage systems. High-priority e-mail can be stored on higher-performance, and higher-cost, media.

That same behind-the-scenes analysis can be used outside the data center, rolled up into a dashboard that managers and end users can view to help them on projects. For example, business units can view e-mail diagrams that show who is communicating effectively on a project and who seems to be lagging behind and rarely contributing.

Pund-IT's King says Messagemind is an intriguing prospect because e-mail has become such a wasteland of broken conversations and disconnected project discussions. Managing e-mail becomes even more painful if a company is subject to litigation, and e-mail becomes part of the legal discovery process.

"Even the best e-mail solutions require employees to manage their messages," says King. "If it works as advertised, I could see this catching hold in enterprises. By managing e-mail more effectively -- and automatically -- Messagemind's solution could take a great deal of weight off the shoulders of data center admins struggling under ever-increasing volumes of stored messages."

6. User accounts virtualized for easier restoration

Virtualization has become the buzzword of the past decade, but it usually involves abstracting an operating system from a server or data from your storage allocations. AppSense is virtualization software for user accounts. It extracts user profile settings from Windows applications and maintains them separately. That means that if an application is updated or changed, the user information is still available. If user settings are corrupted or lost, administrators can restore the settings with a minimum of bother.

Landon Winburn, a software systems specialist at the University of Texas Medical Branch in Galveston, Texas, uses AppSense to virtualize user-account profiles for his 3,000 students. Winburn says the university used to manage user settings manually, taking about 40 to 60 calls per week related to log-ins. The university also had five to 10 corruptions per day related to user settings.

"Before AppSense, the only solution for a corrupt profile was to delete the profile and have the user start again from scratch for all applications," says Winburn.

But now, with AppSense's ability to restore these settings, the university doesn't have to directly address the problems, since they are handled automatically. By virtualizing accounts, the university could also increase the number of XenApp Server accounts from 40 user profiles per server to about 80.

John Brandon is a veteran of the computing industry, having worked as an IT manager for 10 years and a tech journalist for another 10. He has written more than 2,500 feature articles and is a regular contributor to Computerworld.

Thursday, February 4, 2010

Disaster-Proof Data Centers

Disaster-Proof Data Centers
Companies Look To Bunker-Style Hosting Sites For Protection

CIOs who worry about what a bad storm, flood, or fire could do to their corporate data center might consider the ultimate in disaster recovery sites—the bomb shelter. There are a handful of underground data center hosting sites, built in old bomb shelters or mines, and their popularity with private businesses is on the rise. “We will see a lot more [bunker-style data centers] coming up,”

As the data center industry grows, it gets trickier to find ample space to house new facilities or provide companies with room to expand. Interestingly enough, underground locations are a viable option, since a lot of abandoned mines and military bunkers meet necessary criteria. Some underground locations were even built so that reuse would be easy. Directors of these facilities note that people tend to imagine the underground data centers to be dark, drippy holes in the ground, but this is definitely not accurate.

Although anyone with data storage needs might enjoy having such an interesting, high-security facility, so far, underground data centers are especially appealing to high-security organizations like the government. They are extremely well-protected in the event of disasters like hurricanes, tornadoes, and fires, as well as potential terrorist attacks.

Although there are a few issues with some of the underground data centers, like that some of them are in very rural areas, other problems one would imagine to exist, in reality, are not serious obstacles. Water is kept out easily enough, and can even be used for cooling. Limestone mines tend to be dry anyway. The main benefits are the amazing security, and the high amount of readily available space.

It all sounds like a lot of fun to move into, and data center migrations are what we're all about.

Key Points

  • Underground data centers offer ultimate protection against natural disasters and terrorist attacks.
  • Hosting companies are taking over old military bunkers or abandoned mines to create data centers.
  • Bunkers offer lower cooling costs plus extra security services such as biometric readers and armed guards.
  • A subterranean data center will be easier to secure against unauthorized entry and terrorist attacks.


The NBC Nightly News team travelled to one of Iron Mountain’s underground data centers to discover some of the treasures that are protected in this super-secure location. This is the same location where they protect thousands of our customers’ server and PC data.


Tuesday, February 2, 2010

Swiss Fort Knox

















Swiss Fort Knox

http://www.swissfortknox.ch/swissfortknox-english/
The two large, high secure data centers (Swiss Fort Knox®) inside the Swiss Alps are being operated by the company SIAG. The operation and its surveillance of the physical as well as logical infrastructure is coordinated by two security operation centers (SOC). SIAG’s headquarters is located in Zug, Switzerland. The company was founded in 1994.
SIAG is a globally recognized specialist for the management and the reliable and high secure safekeeping and exchange of digital information during its entire life cycle. Experienced and professionally trained security experts advice the customer from the risk identification all the way to an efficient and effective risk minimization. Quality as well as an efficient and cost optimized overall solution of IT security problems represents the backbone of our service offering. SIAG does care for its demanding customer base all around the globe. SIAG solutions are always internationally applicable and ideally customized to match the specific demand of the customer. Our specialists are monitoring the predefined security objectives from the customer site all the way to the parallel datasets inside the high secure Swiss Fort Knox®. Only technologies matching up uncompromisingly with strict criterias of SIAG will be used for these innovative security services.

Thursday, September 24, 2009

Underground Disaster-Proof Data Centers

Disaster-Proof Data Centers
Companies Look To Bunker-Style Hosting Sites For Protection

Key Points

• Underground data centers offer ultimate protection against natural disasters and terrorist attacks.

• Hosting companies are taking over old military bunkers or abandoned mines to create data centers.

• Bunkers offer lower cooling costs plus extra security services such as biometric readers and armed guards.

CIOs who worry about what a bad storm, flood, or fire could do to their corporate data center might consider the ultimate in disaster recovery sites—the bomb shelter. There are a handful of underground data center hosting sites, built in old bomb shelters or mines, and their popularity with private businesses is on the rise. “We see a lot more [bunker-style data centers] coming up,” says Michael Petrino, vice president of data center consulting firm PTS Data Center Solutions (www.ptsdcs.com), who says he’s worked with 10 such data centers over the past few years.

With names like The Underground and InfoBunker, their purpose is fairly clear—to offer total protection against any and all disasters that might bring down a regular data center. Petrino points to financial firms, utility companies, and any publicly traded company that is subject to Sarbanes-Oxley and other government regulations as being prime customers for hardened data centers. Continental Airlines, for example, has a backup data center inside the Montgomery Westland bunker (www.westlandbunker.com) in Montgomery, Texas, which is a former nuclear fallout shelter.

Other companies don’t have such sensitive operations as an airline or bank but still want the security of having an indestructible backup location. Wikia, which operates a consumer publishing platform, went looking for a disaster recovery center in 2007 and wound up renting space inside the United States Secure Hosting Center (www.usshc.com) in Monticello, Iowa. The Iowa center offers a central location between Wikia’s primary San Jose and secondary New Jersey data centers and pretty much guarantees that Wikia sites won’t be down should there be a major disaster on either coast.

“We wanted a disaster recovery location mainly to protect against fire and earthquake in the Bay area. Our entire business relies on being online, so we need to be able to continue to function if [our] primary data center goes away,” says Artur Bergman, the VP of engineering and operations at Wikia.

There were other factors behind the decision, namely service levels and costs. Bergman notes that the real estate costs are lower in Iowa, compared to California and New Jersey, leading to more attractive rates for data center space. But the fact that the center was underground and essentially disaster-proof was also an attractive feature. “If we are spending that money for disaster recovery, we felt it should fit that function as well as possible,” says Bergman.

Behind The Bunker

The majority of the data center bunkers in the U.S. were originally built as either bomb shelters or bomb-proof communications facilities for the government during the Cold War or are inside old mines or caves. USSHC, for instance, was originally one of several bunker locations established by the U.S. government to protect military and government telecommunications links in the event of a foreign attack on the U.S. Iron Mountain’s The Underground, the oldest bunker data center in the U.S., was formerly an iron ore mine.

Computer data and communications are at least as important as electricity to most businesses, and a disaster could put this important data at risk. Considering this, the idea of putting the corporate server inside a bunker may sound pretty good to many CIOs. Even fairly small-scale local disasters can quickly create a surge in interest for disaster-proof data centers. When Iowa experienced flooding last spring, and hundreds of businesses in Iowa City and Cedar Rapids found themselves with waves lapping at their doorsteps, USSHC began fielding a deluge of inquiries, often from businesses looking to move in that week.

“It often takes that kind of an event to get people interested,” says Isaac Helgens, project and marketing director at USSHC. “People often put off colocating because they love their servers, they want to hold them close. But these days, it’s not necessary to have your servers right with you. Anything you can do locally, you can do remotely.”

Helgens notes that a big advantage of a bunker data center is not so much its underground location—though that is important in the event of a hurricane or tornado—but that it is an independent structure, not shared with any other tenant. “We’ve seen good above-ground data centers, with good structures and fire detection, but their own neighbors on other floors presented a high risk. If you have a call center above your data center, for example, then you have a fire suppression system up there that may go off and wreak havoc on the floor below it. There’s also plumbing that can leak. Or another tenant could be running a fireworks factory for all you know,” says Helgens.

What You Get In A Bunker

Underground data centers typically feature 3- or 4-foot thick walls, fire proofing, and fire detection. Generators, fuel tanks, and cooling systems are usually either underground or just under the surface, to protect them from being destroyed by wind or lightening.

Besides the disaster-proof infrastructure, such centers also have high levels of service and security. InfoBunker (www.infobunker.com), in Des Moines, Iowa, offers biometric keypads and pan and zoom security cameras. Cavern Technologies (www.caverntechnologies.com) in Lenexa, Kan., has security guards, smart card access, and motion detectors. Iron Mountain’s The Underground in Pennsylvania provides armed guards, magnetometers, X-ray scanners, and visitor escorts.

As with regular data center providers, bunker centers provide various concierge services and data center staff to help customers manage their equipment. Should a customer at USSHC need to switch its operations to its backup site at USSHC, it provides the staff with work facilities, office space, phones, and other standard equipment. While it assumes that the customer’s staff will come in to man the backup operation, USSHC provides support staff to help get started.

Although the costs of security, services, and infrastructure tend to be higher with a bunker, there are savings in other areas. For instance, underground data centers are naturally cooler and can take advantage of geothermal energy. “Once you go underground, you have a much lower, steady temperature. It’s the same benefit a cave offers you. I’ve seen several reports that put the savings at upwards of 30% per year in energy usage,” says Petrino. Depending upon the region, utility rates may be cheaper, as well. In Iowa, for instance, customers can get power for $12 to $15 per amp, according to Helgens. At the same time, bandwidth rates may be higher if the bunker is in a remote location, as many are. USSHC pays two to three times the rates for bandwidth that they would if they were located in a major city.

For Wikia staff to fly to the Iowa data center, they would have to pay over $850 per person, with at least one connection. Instead, they have opted to fly into Chicago and drive the extra five hours by rental car. Because they only do it once or twice a year, it’s not a major issue, but for companies that want closer contact with their backup sites, it could be a problem.

For most customers considering a bunker, however, it’s the remote location that adds to the appeal, as it means there is less of a chance for a terrorist attack or security breach. New bunker data centers continue to be opened in rural or small-town spots—such as in tiny Hastings, Neb., where the newly launched Prairie Bunkers (www.prairiebunkers.com) plans to turn 184 WWII naval ammunition storage bunkers into individual data centers. Other companies are working on various underground data center projects, most hosted but a few being built for internal company use. Petrino says he’s aware of at least three financial firms and a government entity that are building their own bunkers.

“As the criticality of data comes into play for more and more businesses, offsite tape storage alone won’t be enough,” he says. “Clients are pushing for more and better data backup. Tapes get lost after all. So if you have these types of [online, secured] facilities, you can be more competitive.”

by Sue Hildreth

http://www.processor.com/editorial/article.asp?article=articles%2Fp3124%2F34p24%2F34p24%2F34p24.asp&guid=&searchtype=&WordList=&bJumpTo=True


U.S. Data Center Bunkers

Data Center Location URL
Cavern Technologies Lenexa, Kan. www.caverntechnologies.com
DataChambers Winston-Salem, N.C. www.datachambers.com
InfoBunker Des Moines, Iowa www.infobunker.com
Iron Mountain Butler County, Pa. www.ironmountain.com
Montgomery Westland Montgomery, Texas www.westlandbunker.com
Prairie Bunkers Hastings, Neb. www.prairiebunkers.com
StrataSpace Louisville, Ky. www.strataspace.com
SpringNet Underground Springfield, Mo. www.springnetunderground.net
US Secure Hosting Center Monticello, Iowa www.usshc.com

Friday, July 31, 2009

Data Centers

Data Centers: A Diamond in the Rough

http://www.singlehop.com/data_center_photos/zoom/zIMG_7712.jpg

By Dave Jacobs, Llenrock Group

Oh the irony of it all. Consumer spending is way down, and so the retail sector has been hit hard. Unemployment is at 9.5% and climbing by the day on its way to 10%, and so the office sector is hurting. People are traveling less, and have less discretionary income, so the hotel sector has been battered. Portfolios of industrial property that would have traded sub-7 CAPs 18 months ago are now trading at double digit CAP rates. Even multi-family, a sector success by way of comparison, has felt the impact of tenants looking to double up, rent growth beginning to flatten, and has yet to see, in some markets, a wave of supply from condo projects-gone-bust mess with occupancy rates.

Another BLACKSWAN niche that may prove resilient Data Centers. That’s right, the same sector that fueled the mini recession earlier this decade and is lovingly referred to as the dot-bomb era is currently partying like its 1999. How is that possible, you ask? Several factors are at play.

http://www.aedificoirm.com/Data%20Center/IMG_0099.JPG

Demand is Different

Back at the turn of the millennium, data center demand was bursting at the seams from seemingly every start up company on Earth. Of course, the ability to grow was fueled mostly by venture capital, and every start up needed, or wanted, data center space. When these low revenue/ridiculously highly leveraged companies failed, data centers emptied out and were sold at bargain basement prices.

Now, instead of poorly capitalized start ups driving demand, heavy hitter companies are leading the charge. There are several reasons for this. First, since 9/11, major corporations are legally required to have backup sites for information to protect against the threat of a terror attack on their main infrastructure. These have to be off site, and since most major corporations are located in urban centers, that means these sites are often in suburban areas at least an hour away from headquarters. Secondly, we have seen the rise in bandwidth sucking websites like Facebook, You Tube and MySpace. These types of social networking sites demand a huge amount of electricity that only data center space can provide.

2. Supply is Constrained

When the data center stock was sold after the fallout, many of the suburban buildings were adaptively reused for other purposes. This constrained supply naturally. Furthermore, as construction costs soared a few years ago, nobody built much of anything on spec, let alone a data center whose bad taste was still in every developer’s mouth from 2001.

Furthermore, many of these powerful electricity-sucking facilities need to be strategically located close to a major power source like a substation, or a fiber conduit. Locating further away from these sources makes it more expensive to gain access to the necessary power, which isn’t conducive to keeping costs down for landlords or tenants. This is especially the case in urban environments, which makes adaptive reuse of old vacant office buildings or warehouses much more challenging if they aren’t in the ideal location.

3. Growth is Organic, not Economic

http://www.azlan.co.uk/uploads/images/_eu/technologies/Simple%20Data%20Center%20Layout.jpg

Unlike most other sectors whose growth is usually tied to economic factors like jobs, consumer spending and housing prices, data centers are not. Demand is outstripping supply by a healthy margin, and demand for this type of space is projected to grow substantially over the next 5 years. One only need to look at the newspaper industry to see why. Newspapers are failing across the country because more people are choosing to get their news either via the television or online.

http://news.cnet.com/i/bto/20080525/Picture_1.png

The availability of broadband to all but the most rural of areas has changed our society in dramatic ways. We all know how its changed the way we live; now the growing importance of data centers is real time evidence of its impact to our infrastructure and the real estate investment community. The ever swelling waves of data need to be stored somewhere and data centers are where that will likely be. Corporations will move their file rooms to online servers. Warehouse and stock room inventories will be tracked and managed online. It is a natural progression of the way we will work, and live.

Don’t believe the hype? Digital Realty Trust, the biggest REIT of data center space, has an 11-million-square-foot operating portfolio that is 95% leased. Demand appears high and new average rents are three-times higher than expiring rents. Hence its strong fourth quarter earnings report a few weeks ago, which included a 43.4% jump in FFO to $68.9 million ($0.76 per share). For the year, FFO was $230.3 million ($2.62 per share), up 27.8% from 2007, and adjusted FFO was $2.48 per share, a 21.0% jump from 2007.

As Baird analyst Will Marks points out, “We believe that many corporations are likely to look for ways to cut costs in 2009 and one way to cut costs is to outsource data center operations.” “This trend should benefit DLR.”

While there are industries and niches that run cyclical with, and counter cyclical to the economy, the data center market, unlike all of the rest, seems to know no valley no matter what the economy is doing. Sounds like a sales pitch you say? Then just click on the following - Cloud Computing – and imagine the future.

Case In Point

In my former life as an investment sales broker, I had my hand in selling several data carrier hotels. While at Marcus & Millichap’s Philadelphia office, we listed for sale only a 42,000 square foot, former Hires rootbeer factory turned data carrier hotel, due to its proximity to the old Philadelphia B & O rail line, which you might recognize from a Monopoly board. In a grid based city like Philadelphia, access to fiber lines that run underneath rail lines is essential to harnessing power for a data carrier hotel. It was for this reason that this obscure, dated four-story building was bursting at the seams with tenants big and small, institutional and startup, who sometimes rented as little as 43 square feet of space to house fiber conduits and racks, but paid over $100 per square foot for the space.

In a market where even at the top of the cycle, product seldom traded for more than $175/per square foot, this building eventually sold for $15.3 million dollars, or $364 dollars per square foot, more than double the cost of trophy office buildings in Center City. The truth of the matter is that if these buildings are well situated with access to robust power sources (substations or generators) and conduit fiber lines and have little competition or low barriers to entry, they can be just as big cash cows as the best parking garages or self-storage facilities, if not even better. These items are of paramount importance, because when you look at a price per square foot figure as healthy as the one cited above, you can quickly understand that replacement cost must be thrown out the window. While it is important to understand the supply and demand factors, as it is with any property, you need to understand that you are essentially buying cash flow in the form of the value of the sum of leases, rather than the brick and stick real estate that houses them.

Tuesday, July 28, 2009

Data centers go underground in bunker


Data centers go underground in
bunker mentality can be helpful for security, backup and business continuity

As Hurricane Ike bore down on Houston one Friday last September, the Continental Airlines' flight operations center, located on the 14th floor of a glass-sided downtown high rise, suddenly went dark. For the airline's pilots and flight crews, however, business proceeded as usual.

Here's why: At that same moment, 42 miles north of the city and some 60 feet underground -- in a hardened Cold-War era bunker built by a paranoid millionaire oilman to survive a nuclear holocaust -- Continental's backup data center took over. Throughout the ordeal -- from Friday morning, as the storm approached, through Saturday, when winds above the Westland Bunker in Montgomery, Texas, gusted to 125 miles per hour, until Sunday evening, when operations resumed in Houston -- the airline managed an 89% on time rating for its global flight schedule.

Locating a backup data center in an underground bunker may seem like overkill, even in a hurricane zone. But the facility met all of the airline's requirements -- including cost, says John Stelly, managing director of technology at Continental. The bunker, run by real estate partnership Montgomery Westland, has been converted into 33,000 square feet of rack-ready data center space complete with air conditioning, redundant network and power sources, uninterruptible power supply systems and backup generators.

Continental leases 2,000 sq. feet underground and another 12,500 sq. feet of office space above ground, in a hardened building complete with 3-inch-thick bulletproof windows. The airline can house its entire operations staff of up to 125 people at the backup site.

After Hurricane Katrina, Continental began looking for a fallback data center for use during hurricanes. Westland "was far enough away to be out of harm's way but close enough for folks to drive to," Stelly says. The blast-resistant facility is admittedly a bit much for even Continental's backup needs, but the four-feet-thick walls and high security entrance are nice extras, Stelly says.

Also, connectivity options at the Westland facility were a plus. The network and power feeds for the bunker were sourced from areas well away from Houston, while pricing was competitive with above-ground co-location facilities.

Rise of the underground

With a renewed focus on data center outsourcing and space in high availability facilities in short supply, investors such as Montgomery Westland have snapped up and renovated abandoned mines and military bunkers in the hopes of cashing in.

Since 2007, for example, Cavern Technologies has operated a data center 125 feet below ground in an abandoned limestone mine. The mined out area underground, which covers 3 million sq. feet, is 15 minutes outside of Kansas City, Mo. Unlike other mines, the Cavern facility was created with the idea of reuse in mind, so floor space isn't irregularly shaped like other underground facilities can be, says president John Clune. The area's relatively low electricity costs, at 3.5 cents per kilowatt-hour, help to make operating costs lower than those in other parts of the country, he adds.

Another facility, The Bunker, is a decommissioned, 50,000 sq. foot Royal Air Force bunker that operated until the 1990s. The facility is inside a hill near Dover, England and it now hosts data centers 100 feet below ground. "People get a picture of a hole in the ground. That's not the case. It's a state-of-the-art data center," says Paul Lightfoot, director of managed services for The Bunker. Clients range from businesses running mission-critical Web applications to a financial services firm that runs online trading systems. "We do everything from basic square footage to fully maintained systems," he says.

Iron Mountain is among the oldest and best known providers of underground storage and data center space. Known for storing everything from backup tapes to old movie reels in The Underground, its repurposed limestone mine in rural Pennsylvania, the company has seen its electronic storage and leased data center space business increase while its traditional paper record storage business has slowed. "It is now the fastest growing component of our business," says vice president Charles Doughty. In addition to leasing rack-ready space, the company offers data center design, hosting and management services.

But while interest is up, the number of actual customers leasing space in its underground data centers remains small. Iron Mountain counts five operating data centers in its underground facility, including its own. But with 60,000 square feet of available data center space and another 145 acres undeveloped in the facility, Iron Mountain has plenty of room for more.

Underground data center facilities fall into two categories: Abandoned mines, like Iron Mountain's, and decommissioned military bunkers such as InfoBunker, a subterranean facility just outside of Des Moines, Iowa. InfoBunker leases data center space to organizations ranging from a local telephone company to government agencies about which Jeff Daniels, a vice president at the company, says he can't talk.

On the demand side, an increase in extreme weather events, heightened concerns about security since 9/11 and the need to provide higher levels of security to comply with regulatory requirements have made these spaces more attractive to some organizations. Underground facilities offer security and structural protections that would be cost prohibitive to build from scratch.

Meanwhile, the recession and credit crunch have made it harder to get funding to build new data centers, and organizations have become more accepting of the idea of using co-location facilities to house mission-critical data center operations. "Demand for computer space is stronger than I've ever seen it [and] the supply is so small, so inadequate," says Peter Gross, vice president and general manager at HP Critical Facilities.

Basic co-location space isn't the problem, says Jon Bolen, chief technology officer at Westec Intelligent Surveillance. The surveillance-monitoring service, based in Des Moines Iowa, serves clients such as McDonald's Corp. and Zales Corp., and recently completed a search for a hardened facility for its own backup data center. During this search, Bolen saw a general lack of high-end infrastructure, of enterprise-class data center space. "If you need space that is as good or better than the space you would build there's a shortage of places you can go."

This shortage has given the underground facilities an opening to pull in larger data center clients. Cavern says it is negotiating with Fortune 500 clients looking to lease spaces of 30,000 to 100,000 square feet. However, most clients are smaller organizations that don't require so much space; more typical would be a hospital that leases 1,500 sq. feet.

One might assume that IT organizations would have to pay a premium for bunker space. After all, the cost of building such a structure is high, and special venting and air-flow systems are required. But IT executives say they've driven deals where the total cost of ownership is competitive with above-ground facilities. Because they're repurposing existing space that the government or a mine operator paid to build, providers say they don't have to pass on the original construction costs for the structures and can afford to be cost competitive.

Before deciding to go underground, IT executives need to identify potential limitations, experts say. Even things as simple as ceiling height can be a challenge. Continental's data center space in the Westland bunker has 10-foot ceilings, and putting full-height racks on top of an 18-inch raised floor was a tight fit. "We had to come up with a design to allow us to use full-height racks while providing sufficient airflow," Stelly says.

Another concern: While computer systems may be protected in a bunker, critical infrastructure needed during a disaster, such as generators, fuel tanks and air conditioning cooling towers, may be above ground. That could be a problem if the catastrophe you need to worry about is a tornado, warns Westec's Bolen.

Bolen recounts how one company claimed that its hardened facility could withstand a direct hit from an F3 (158 to 206 mph) tornado. But the air conditioning and generators were outside. "When an F3 hits, those generator and HVAC units are going to come off their pads," he says.

Westec ended up taking space at InfoBunker, about 45 miles away from its offices, Bolen says. The 65,000 square foot Cold War command bunker, designed to withstand a 20-megaton nuclear blast, maintains all infrastructure, including generators, fuel and cooling equipment, 50 feet underground.

Another consideration is that these underground facilities tend to be in rural, out-of-the-way locations. The facilities may be too far away from a company's primary data center, and finding local lodging for staff in a disaster situation may be difficult. Continental had to find office space and lodging accommodations for more than 100 operations staff during Hurricane Ike. Fortunately, Montgomery Westland had hardened above-ground office space as well as access to local lodging.

Underground facilities do have a few other advantages. The limestone floors at The Underground have a virtually unlimited load rating, while the walls maintain a constant temperature of about 55 degrees and act like a heat sink for some of the waste heat that comes off data center equipment. The limestone walls absorb 1.5 BTUs per hour per sq. foot of wall space, Doughty says.

Cool stuff

The green aspect of going underground is what attracted Marriott International. It wanted to move from an outsourced "cold site" disaster recovery service to managing its own hot site backup data center. Management wanted a hardened, secure facility in a location that was within a day's drive from Marriott's Bethesda, Md., headquarters. And it wanted to make sure the facility followed the company's focus on environmentally friendly best practices, according to Dan Blanchard, Marriott's vice president of enterprise operations.

Last year, the hospitality business completed the build-out of a 9,000 sq. foot remote backup data center at The Underground. Blanchard says that although the extreme level of security, including armed guards, exceeded his requirements, the idea of reusing an old mine rather than breaking new ground appealed to Marriott. "It's a definition of recycling to use the space that was a mine and convert that fairly inexpensively to its next use, which for us is a data center."

Energy efficiency also factored into Marriott's decision, Blanchard says. While Marriott's data center uses a traditional chiller as its primary cooling system, the backup is a prototype free cooling system. That prototype, designed by Iron Mountain, uses an air-to-air heat exchanger, drawing 55-degree air from the 1,000 acres of unused space within the mine. "The air is the exact temperature of what you would bring in with mechanical cooling," Doughty says. Iron Mountain also is experimenting with a system that would pull cool water from an underground lake within the mine.

An abandoned mine may conjure up images of damp walls and dripping ceilings -- but that's not the case here. "You have pumps and a lot of protective devices," says HP's Gross, and all of the facilities claim that dampness is not a problem. Doughty says The Underground is naturally dry due to its location and the type of limestone above the mine.

Air quality also is good, he says. The air in the Iron Mountain facility is relatively clean and non-condensing, he says. "As soon as you put heat to it moves away from the dew point," and that makes it a good choice for cooling, he says.

Blanchard says the new Recovery and Development Center, which is used for software development until needed in an emergency, costs half as much as he previously spent on power. Some of that is attributable to relatively low cost of power in Pennsylvania (5.5 cents per kWh). The rest comes from efficiencies of design and the characteristics of the underground environment.

Gross cautions, however, that cooling efficiency gains specific to the location are probably not all that significant. A well-designed data center today can cut power consumption in half by using new energy efficient equipment that can run at higher operating temperatures, by optimizing airflow designs to allow intake air temperatures to rise as high as 85 degrees and still keep equipment within operating temperature limits, and by picking a location in a colder climate, where water- or air-side economizers can be used to take advantage of cool outside air as weather permits.

Security, Gross says, is the primary benefit of using an underground facility to host a primary or secondary data center. But for most of his clients, the ability to get people to the backup data center in a hurry, connectivity options, and finding a facility that meets budget are priorities. Underground facilities usually don't beat out above-ground sites in his clients' evaluations, he says.

Still, Continental and Marriott are among a small number of enterprise operations using underground facilities. Rakesh Kumar, an analyst with Gartner Inc., says he is unaware of any Gartner client that is currently leasing space in one. The primary benefit of such sites, he says, is that they are designed to be highly resilient -- often to military specifications. That's important for some government data centers. "But for most commercial enterprises, it probably will not be such a major requirement." IT executives considering underground data center space should check into expansion capability, energy efficiency and how electricity use is metered, he says.

The main entrance to InfoBunker's underground facility is a four-inch-thick, 4.5-ton main blast lock. It serves both as a secured entrance and as a very heavy-duty person-trap. Visitors must pass through two doors that are interlocked. One will not open before the other is closed and sealed.

InfoBunker blast lock

The operations center at InfoBunker's underground facility. The facility has 65,000 square feet of data center-ready space.


InfoBunker's operations center

Main entrance at The Underground, a 145-acre underground facility operated by Iron Mountain in Butler County, Penn. Visitors are accompanied by armed escorts.

Iron Mountain entrance

Workers in Iron Mountain's control room at The Underground monitor systems operations as well as external factors like the weather.

Iron Mountain's control center

The Underground hosts five data centers, including Iron Mountain's own primary data center, shown here. It backs up data for more than 400,000 computers and 20,000 servers, and archives approximately 10 billion e-mail messages.

Iron Mountain's data center

During Hurricane Ike last year, Continental Airlines evacuated more than 100 operations workers to this hardened office building, adjacent to the underground Westland Bunker, where data center operations continued uninterrupted 60 feet below ground. The office building has 3-inch bulletproof glass on the first floor and reinforced walls.

Westland's building

Suites like this one at the Westland Bunker house customer data center equipment within the hardened, underground facility. The bunker is home to 13 primary and backup data centers. The Tier 3 suite shown is 4,800 square feet.

Westland's suites

The Westland Bunker offers caged suites and rack space, shown here. The racks in this 12,000-square-foot room, located some 55 feet below ground, house servers and networking equipment owned by many companies.

Westland's data center

Main entrance to The Cavern, operated by Cavern Technologies in Lenexa, Kansas. Originally a limestone mine, the facility now leases data center space to 26 customers.

The Cavern's entrance

A secure access corridor within The Bunker, a former Royal Air Force bunker in Dover, U.K.

The Bunker's hallway

The main entrance at The Bunker, located on a hilltop in Dover, U.K., doesn't look like much. But 100 feet below ground it hosts data center equipment for more than 50 customers.

The Bunker's entrance
Underground Secure Data Center Operations

Technology based companies are building new data centers in old mines, caves, and bunkers to host computer equipment below the Earth's surface.

Underground Secure Data Center Operations have a upward trend.

Operations launched in inactive gypsum mines, caves, old abandoned coal mines, abandoned solid limestone mines, positioned deep below the bedrock mines, abandoned hydrogen bomb nuclear bunkers, bunkers deep underground and secure from disasters, both natural and man-made.

The facility have advantages over traditional data centers, such as increased security, lower cost, scalability and ideal environmental conditions. There economic model works, despite the proliferation of data center providers, thanks largely to the natural qualities inherent in the Underground Data Centers.

With 10,000, to to over a 1,000,000 square feet available, there is lots of space to be subdivided to accommodate the growth needs of clients. In addition, the Underground Data Centers has an unlimited supply of naturally cool, 50-degree air, providing the ideal temperature and humidity for computer equipment with minimal HVAC cost.

They are the most secure data centers in the world and unparalleled in terms of square footage, scalability and environmental control.

Yet, while the physical and cost benefits of being underground make them attractive, they have to also invested heavily in high-speed connectivity and redundant power and fiber systems to ensure there operations are not just secure, but also state-of-the-art.

There initially focused on providing disaster recovery solutions, and backup co-location services.

Clients lease space for their own servers, while other provides secure facilities, power and bandwidth. They offers redundant power sources and multiple high-speed Internet connections through OC connected to SONET ring linked to outside connectivity providers through redundant fiber cables.

Underground Data Centers company augments there core services to include disaster recovery solutions, call centers, NOC, wireless connectivity and more.

Strategic partnering with international, and national information technology company, enable them to offer technology solutions ranging from system design and implementation to the sale of software and equipment.

The natural qualities of the Underground Data Centers allow them to offer the best of both worlds premier services and security at highly competitive rates.

Underground Data Centers were established starting in 1990's but really came into there own after September 11 attacks in 2001 when there founders realized the former mines, and bunker offered optimal conditions for a data center. The mines, and bunkers offered superior environmental conditions for electronic equipment, almost invulnerable security and they located near power grids.

Adam Couture, a Mass.-based analyst for Gartner Inc. said Underground Data Centers could find a niche serving businesses that want to reduce vulnerability to any future attacks. Some Underground Data Centers fact sheet said that the Underground Data Center would protect the data center from a cruise missile explosion or plane crash.

Every company after September 11 attacks in 2001 are all going back and re-evaluating their business-continuity plans, This doesn't say everybody's changing them, but everybody's going back and revisiting them in the wake of what happened and the Underground Data Center may be just that.

Comparison chart: Underground data centers

Five facilities compared
Name InfoBunker, LLC The Bunker Montgomery Westland Cavern Technologies Iron Mountain The Underground
Location Des Moines, Iowa* Dover, UK Montgomery, Tex. Lenexa, Kan. Butler County, Penn.*
In business since 2006 1999 2007 2007 Opened by National Storage in 1954. Acquired by Iron Mountain 1998.
Security /access control Biometric; keypad; pan, tilt and zoom cameras; door event and camera logging CCTV, dogs, guards, fence Gated, with access control card, biometrics and a 24x7 security guard Security guard, biometric scan, smart card access and motion detection alarms 24-hour armed guards, visitor escorts, magnetometer, x-ray scanner, closed-circuit television, badge access and other physical and electronic measures for securing the mine's perimeter and vaults
Distance underground (feet) 50 100 60 125 220
Ceiling height in data center space (feet) 16 12 to 50 10 16 to 18 15 (10 feet from raised floor to dropped ceiling)
Original use Military communications bunker Royal Air Force military bunker Private bunker designed to survive a nuclear attack. Complex built in 1982 by Louis Kung (Nephew of Madam Chang Kai Shek) as a residence and headquarters for his oil company, including a secret, 40,000 square foot nuclear fallout shelter. The office building uses bulletproof glass on the first floor and reception area and 3-inch concrete walls with fold-down steel gun ports to protect the bunker 60 feet below. Limestone mine originally developed by an asphalt company that used the materials in road pavement Limestone mine
Total data center space (square feet) 34,000 50,000 28,000 plus 90,000 of office space in a hardened, above-ground building. 40,000 60,000
Total space in facility 65,000 60,000 28,000 3 million 145 acres developed; 1,000 acres total
Data center clients include Insurance company, telephone company, teaching hospital, financial services, e-commerce, security
monitoring/surveillance, veterinary, county government
Banking, mission critical Web applications, online trading NASA/T-Systems, Aker Solutions, Continental Airlines, Houston Chronicle, Express Jet Healthcare, insurance, universities, technology, manufacturing, professional services Marriott International Inc., Iron Mountain, three U.S. government agencies
Number of hosted primary or backup data centers 2 50+ 13 26 5
Services offered Leased data center space, disaster recovery space, wholesale bandwidth Fully managed platforms, partly managed platforms, co-location Disaster recovery/business continuity, co-location and managed services Data center space leasing, design, construction and management Data center leasing, design, construction and maintenance services
Distance from nearest large city Des Moines, about 45 miles* Canterbury, 10 miles; London, 60 miles Houston, 40 miles Kansas City, 15 miles Pittsburgh, 55 miles
Location of cooling system, includng cooling towers Underground Underground Above and below ground. All cooling towers above ground in secure facility. Air cooled systems located underground. Cooling towers located outside
Chillers located above ground to take advantage of "free cooling." Pumps located underground.
Location of generators and fuel tanks Underground Above ground and below ground Two below ground, four above ground. All fuel tanks buried topside. Underground Underground
*Declined to cite exact location/disatance for security reasons.