D a t a C e n t e r M a r k e t O v e r v i e w produced by

Transcription

1 Data Center Market Overview produced by

2 Understanding the ecosystem and language of the core infrastructure driving our digital economy has thus become a unique and strategic advantage. Sean Patrick Tario, CEO, OSI 2

3 Tax Incentives *source: Lenio, John and Lynch, Patrick, Impact of Taxes & Incentives on Data Center Incentives, CBRE, July Sales and use taxes, property taxes, and real estate taxes all play a role in the total operating costs of data centers. Some states, however, offer incentives that lower the operating cost, or Total Cost of Occupancy (TCO) for both data center owner/operators and their clients installing infrastructure within these facilities. Oregon currently DOES offer sales tax incentives that may affect data center owner/operators or their clients installing hardware and related infrastructure. 3

4 National Industry Trends *source: IDC trends, ,940,000: Number of data centers in the USA* Expected to DECREASE year over year 2,500: Number of commercial data center facilities within the USA Expected to INCREASE year over year 611,400,000: Total data center sq. ft. within the USA* Expected to INCREASE year over year 90%: Amount of data generated within the past two years as a % of whole Expected to INCREASE year over year 4

5 National Industry Trends Portland Q1:2015 *source: Akamai s State Of The Internet, Q Report, V7, #1. As worldwide internet access increases, the number of total data centers in the US decreases, but square footage of data centers increases. Cost of energy varies wildly across the nation. Q1 14 Unique ipv4 Addresses Country Network Provider Q1 14 ipv6 traffic % United States Comcast Cable 13% United States Verizon Wireless 45% United States AT&T 11% United States Time Warner Cable 4.7% France Proxad/Free 19% Germany Deutsche Telekom 9.2% Romania RCS & RDS 17% Germany Kabel Deutschland 30% Q1 14 Unique ipv4 Addresses Q over Q Change Y Over Y Change Global 795,443, % 7.8% Belgium Telenet 24% 1 United States 162,676,451 (1.4%) 8.6% Peru Telefonica Del Peru 7.4% Switzerland Swisscom 20% Japan KDDI Corporation 12% Germany Unitymedia KabelBW 19% 2 China 5 IPv6 traffic percentage, top network providers by volume 123,526, % 11% 3 Brazil 41,298,964 12% 50% 4 Japan 40,042,679 (0.8%) (3.3%) 5 Germany 37,176,442 (0.1%) (2.4%) Hughes Network United States Systems (DISH Network) 22% Belgium Brutele 24% United States T-Mobile 6.2% 6 United Kingdom 28,509,857 (0.6%) (1.2%) 7 France 28,451, % 5.7% Belgium Belgacom 5.9% 8 South Korea 20,987,274 3% (1.6%) Malaysia Telekom Malaysia 1.2% 9 Italy 20,021,068 1% (2.4%) Czech Republic o2 (Telefonica) 6.3% 10 Russia 18,752, % 3.3% Norway Get AS 16%

6 National Industry Trends *source: Telegeography, copyright 2014 PriMetrica, Inc. Retail Operators with Largest Amount of New Colocation Site Capacity, (million sq ft) Largest Colocation Providers by Gross Floor Space 2014 **A number of notable providers are missing from these graphs, such as: QTS = 1M+ sq. ft. NEW and 3M+ sq. ft. GROSS Digital Realty Trust = 1M+ sq. ft. NEW and 24.5M sq. ft. GROSS SABEY = 500K+ sq. ft. NEW and 3M sq. ft. GROSS Coresite Realty Corp = 556K sq. ft. NEW and 3.2M sq. ft. GROSS 6

7 National Industry Trends *source: source: CBRE Data Center Solutions Group, Q4 2014, and Akamai s State Of The Internet, Q Report, V7, #1. Q primary wholesale colocation "metered power" market snapshot Average Cost By Location AVE COST/kW Market Inventory Vacancy Rental Rates (kw/mo) HOUR North Bay Area, CA $0.12 South Bay Area, CA $0.10 Northern Virginia 402 MW 27 MW / 6.7% $135-$150 Phoenix 213 MW 4.1 MW / 1.9% $145-$165 Atlanta 127 MW 26.2 MW / 20.7% $120-$150 Silicon Valley 116 MW 15.9 MW / 13.7% $140-$150 NYC/NJ 122 MW 20.4 MW / 16.7% $145-$160** Chicago 115 MW 3.6 MW / 3.2% $145-$165 Dallas/Fort Worth 113 MW 12.1 MW / 10.7% $140-$150 **Quoted rates are outside of NYC proper. NYC (Manhattan) wholesale rates average $225-$300/kW/mo. Sacramento, CA $0.10 Los Angeles, CA $0.13 Seattle, WA $0.06 Quincy, WA $0.03 Portland, OR $0.09 Las Vegas, NV $0.10 Pheonix, AZ $0.06 Salt Lake City, UT $0.05 Denver, CO $0.07 Dallas, TX $0.08 Austin, TX $0.06 Chicago, IL $0.08 Philadelphia, PA $0.10 Miami, FL $0.08 Atlanta, GA $0.06 Richmond, VA $0.06 NYC, NY $ $0.18 Secaucus, NJ $0.13 7

8 National Industry Trends Portland Q1:2015 *source: Data Center Journal, Volume 32, June, Demand is now booming for the core storage and compute resources required to run the digital economy, with elastic compute IaaS providers making it easier for any programmer with an internet connection and a credit card to start and manage a business online. This has meant great things for those working directly in, or indirectly supporting, the IT industry. Sean Patrick Tario Data Center Journal s Top 5 DC Trends of 2014: 1. Virtualization 2. Smart device mobility 3. Software-defined networks 1% 4. Exponential increase in data to be stored 5. Consumers still think there s a cloud 8

9 Portland Industry Trends Portland Q1:2015 *source: **source: ***source: Gov Signs Bill Killing Oregon s Controversial Data Center Tax The controversial central assessment tax in Oregon that threatened data centers has received a final nail in the coffin. Governor Kate Brown signed off on a bill last week that addresses a tax that might have threatened future growth of the data center industry in the state. * ViaWest Building Massive Oregon Data Center ViaWest currently has around 50,000 square feet of sellable space in the area. The new facility, when fully built, will add close to 140,000 square feet of colocation space within a 210,000-square-foot building. In addition to being a much larger facility, the Hillsboro, Oregon, data center will feature the company s latest design refinements for high quality and reliability. ** T5 Closes $55.5M Credit for Oregon Data Center Construction T5 Data Centers has secured a $55.5 million credit facility to finance its data center construction project in Hillsboro, a Pacific coast city that s part of the Portland metro. The secured credit facility was provided by CIT Bank, subsidiary of the U.S. financial holding giant CIT Group. *** 9

10 Portland Industry Trends 15 commercial data centers house 11 different providers within the Portland region 10

11 Network IXP s *source: peeringdb.com. Accessed April 2, List of Major Peering Exchanges in and around Portland Exchange Name Long Name City/Region Participants NWAX Northwest Access Exchange, Inc. Portland, Oregon

12 Seattle Las Vegas Los Angeles Denver Phoenix Minneapolis Dallas Chicago Austin Houston New Orleans Kansas City Cincinnati Manhattan Atlanta Washington DC Ashburn - POP Charlotte Orlando Honolulu Miami Amazon, Japan London, UK Aterdam, Netherlands Hong Kong, China Shanghai, China Brisbane, AU South Africa Network Latency *source: twtelecom.com on 6/30/2014. International data from dotcom-monitor.com, accessed 7/18/2014. Latency in milliseconds, from Portland

13 DC Directory Name Retail Wholesale Hosting Location(s) TYPE (TICKER: EXCHANGE) Address City CenturyLink Beaverton Data Center #1 CenturyLink Hillsboro Data Center x x Global Public (CTL: NYSE) 1 SW Bowerman Dr. Beaverton x x Global Public (CTL: NYSE) 3935 NW Aloclek Pl. Hillsboro EasyStreet Beaverton DC1 x x Regional Private (PE Backed) 9705 SW Sunshine Ct. Beaverton EasyStreet Portland DC3 x x Regional Private (PE Backed) 511 SW 10th Ave. 3rd floor Portland EdgeConneX EDCPOR01 x x National Private NW Evergreen Pkwy. - Bldg C-300 Hillsboro Infomart Hillsboro x x National REIT: ASB Real Estate Fund NW Evergreen Pkwy. Hillsboro Green House Data Portland Data Center LightPoint Portland Datacenter x x National Private 9705 SW Sunshine Ct. Beaverton x x Local Private 625 SW Stark St. Suite 500 Portland Opus Interactive Portland x x Regional Private 1225 West Burnside St. Suite 310 Portland Opus Interactive Hillsboro x x Regional Private NW Evergreen Pkwy. Hillsboro SunGard Portland Data Center x x National Private 233 NW 12th Ave. Suite 201 Portland T5 Portland Data Center x National Private 4082 Northwest Brookwood Pkwy. Hillsboro Telx Portland Oregon Data Center PRT1 x National PE Backed 3825 NW Aloclek Pl. Hillsboro, ViaWest Hillsboro I & II x x x National ViaWest Brookwood (Under Construction) x x x National 1% Sub of Shaw Public (SJR: NYSE) 3935 NW Aloclek Pl. Bldg C & D Hillsboro Sub of Shaw Public (SJR: NYSE) NW Huffman St. Hillsboro 13

14 Portland, and the Pacific Northwest in general, have recently become a hotbed for new data center deployments by both single tenant owners such as Google and Facebook as well as multi-tenant data center operators such as Viawest, Telx and T5. The low cost of power and 0% sales tax on infrastructure deployed within facilities here offer huge savings and incentives for customers of all shapes and sizes. 14

15 Local Geological Factors *source: Matthew Erickson, Joe Burgess, and Bill Marsh of The New York Times, April 30, Accessed online, nationalatlas.gov data range = No hurricane risk High precipitation Hurricane Risk Average Annual Precipitation (in inches)

16 Local Geological Factors *source: FEMA Earthquake Hazard Maps, Accessed July 11, Moderate earthquake risk SDC EARTHQUAKE HAZARD A Very small probability of experiencing damaging earthquake effects. Portland* B Could experience shaking of moderate intensity. C Could experience strong shaking. San Francisco D0 D1 D2 Could experience very strong shaking (the darker the color, the stronger the shaking). E Near major active faults capable of producing the most intense shaking. 16

17 Local Geological Factors *source: nationalatlas.gov data range = and nationalatlas.gov data range = Low thunderstorm risk Moderate wildfire risk Thunderstor Number of damage-causing events Wildfires Number of events that resulted in damage 11 or Greater or Greater

18 Local Geological Factors *source: nationalatlas.gov data range = and Matthew Erickson, Joe Burgess, and Bill Marsh of The New York Times, April 30, Accessed online. Moderate lightning risk Low tornado risk Tornado Risk Lightning Number of events that resulted in damage 45 or Greater No Events 18

19 Utility Service Territories *source: 1% 19 Portland Q1:2015

20 Energy Fuel Mix Portland Q1:2015 *source: Oregon Utilities Average Fuel Mix Coal 31% Natural Gas 21% 20 Hydroel ectric 37% Wind 10%

21 Power Rates *source: eia.gov, Electric Power Monthly. Accessed August 12, Portland: Average Retail Price of Electricity to Ultimate Consumers by End-Use Sector Residential Commercial Cents per Kilowatthour 21

22 National Power Connections *source: Accessed June 30,

23 National Energy Projections *source: AEO2014 Early Release Rollout Presentation Paul J. Nitze School of Advanced International Studies, Johns Hopkins University December 16, 2013, Washington, DC, by Adam Sieminsky, December 16, 2013 Non-hydro renewable generation more than doubles between 2012 and 2040 Non-hydro renewable generation, billion kilowatt-hours per year Historical Projections 23

24 National Energy Projections *source: U.S. EIA, Annual Energy Outlook 2014 Early Release Overview Delivery Energy Consumption By Sector (quadrillion Btu) U.S. Primary Energy Consumption by Fuel By Sector (quadrillion Btu) 40 History 2012 Projections 120 History 2012 Projections

25 National Economic Trends *source: CBRE Research and Bureau of Labor Statistics. *Job growth vs and rent growth Q vs. Q Office Rental Growth Overall Market Tech Services Job and Office Rent Growth % 0% 10% 20% 30% 40% 50% 25

26 Portland Q1:2015

27 Portland Q1:2015

28

29 Portland Q1:2015