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Commercial Real Estate: Data Centers


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We're seeing a spike in interest around data centers. When we look at how the space is used, and how it's price per square foot is compares to other commercial spaces, we see it's with good reason.

The building stays mostly vacant except for a handful of on-call employees to handle the computers, general maintenance, etc.. It's essentially a high-security storage room for computers which means the integrity will last much longer than other commercial spaces.

The only people present are there to manage the servers or clean things, so aesthetically we build it how we want. Good design is focused around usability, so we have free reign over design and aesthetics while remembering what it's core purpose is; with that in mind, we'll repurpose our pristine property when we evolve past needing such vast spaces to hold our data, so have foresight.

We have a two main things to consider when building these; proximity and price. We want to consider the center's proximity to prospective clients, utility sources, and what the climate in the area is like. Although price sounds obvious, something to consider is how hot your laptop gets on your lap.

Great, so you can imagine how hot these data centers would get without proper HVAC. Someone is going to spend a lot on heating/cooling, electricity, fiber optic internet, etc, so they better have unhindered access to it.

Imagine a punnet square of all the possible deal structures that the utilities present and you'll realize why the clients are going to choose you over your competitors.

Worth noting that you're right about building in cold areas like reformed military bases or ice caves, except having such distance between facilities renders it relatively useless unless your clients are cloud based, which is less than 5% of the industry. Around 70% of data centers in the U.S. exist in Virginia, so either utilities get precedent over proximity to client headquarters, or John Carter is up to something. 

We're going to dig deeper into these blatantly beautiful investments so make sure you check back every single day of your life to read what we write.