Data Centres that never, never, ever go down
Investing in Norwegian Data Centres 13 February 2013 J. Byrne Murphy - Chairman DigiPlex Group of Companies
My Topics Today Investing In Norwegian Data Centres What is a Data Centre? How does a Data Centre compare to any other property type? What is driving the growth in Data Centers? What is Big Data? DigiPlex s investments in Norway Why Norway?
What is a Data Centre?
A Data Centre is analogous to A Computer Hotel An Airport A Safe, Reliable Piece of 21 st Century Infrastructure An infrastructure that must Never, never ever go down
The key components of a Data Centre are: Main Computer Halls Cold Climate Cooling Refrigeration Plant Security Fence The DigiPlex Fet Data Centre Power Generation Plant
And inside they look like this
How does a Data Centre compare to any other property type?
Investment Comparability Office Electrical Mechanical Structural Security Data Centre! + UPS!!!!" + Refrigeration People Contract! "! + Servers
Where the cloud touches the ground?
A few real estate investment comparisons Prime Residential 27,000 Commercial Officing 33,000 An Opera House 65,000 A Residency Club in Florence 74,000 A Data Centre in Oslo 140,000
Occupier need is constant and growing, making data centres one of the few sectors of real estate showing strong year-on-year growth
And then to fill the Data Centre with Computers and Communications (ICT) equipment. Build Cost x 4
Investing in Data Centres The Factors Data Centres are hugely expensive to build and equip Data Centres are the hub of all 21 st Century businesses but & Data Centres are a customer Must Have Data Centres Provide Solid Long Term Business Returns so DATA CENTRES ARE THE INFRASTRUCTURE OF 21 ST CENTURY LIFE
Data Centre Stock Market Performance 450 400 350 AMC DATA CENTRE INDEX 300 250 NASDAQ-100 200 150 FTSE-100 100 50 0 01/01/2009 01/05/2009 01/09/2009 01/01/2010 01/05/2010 01/09/2010 01/01/2011 01/05/2011 01/09/2011 01/01/2012 01/05/2012 01/09/2012 01/01/2013 01/05/2013 Sources: IMF, National Sources, Nordregio & NLS Finland, Fraser Institute, OECD
What is driving Data Centre growth?
Drivers of Data Centre Growth Internet Users Worldwide But, 4.8 Billion people are still to be connected.
Drivers of Data Centre Growth The Expanding Internet Source: Com Score Every Day 320 Billion Emails will be sent 4.3 Billion Web searches are made 2.2 Billion Videos will be viewed 150 Million Tweets will be sent Every Minute
More & more internet traffic More & more data Where will it all live?
Answer In Data Centers
What is Big Data?
Big data is large data, but more importantly it s a powerful data processing capability
Big Data example Retail Industry
Why DigiPlex invests in Norway
DigiPlex Current Oslo site locations 3 Data Centres Gardemoen 25 Kms Ulven 20 Kms Fetsund 15 Kms Rosenholm
Why Digiplex Invests in Norway - Top Class Place to Be - Rankings Overall rank * Country Global competitiveness Ease of doing business Global innovation Corruption perception Human develop- ment Prosperity 1 Sweden 4 13 2 4 10 3 2 Denmark 12 5 7 1 16 2 3 Finland 3 11 4 1 22 7 4 Norway 15 6 14 7 1 1 5 Switzerland 1 28 1 6 11 9 6 New Zealand 23 3 13 1 5 5 7 Singapore 2 1 3 5 26 19 8 United States 7 4 10 19 4 12 9 Netherlands 5 31 6 9 3 8 10 Canada 14 17 12 9 6 6 11 Hong Kong 9 2 8 14 13 18 12 Australia 20 10 23 7 2 4 13 Britain 8 7 5 17 28 13 14 Germany 6 20 15 13 9 14 15 Ireland 27 15 9 25 7 10 Sources: World Economic Forum, World Bank, INSEAD and World Intellectual Property Organisation, Transparency International, UNDP, Legatum
Why Digiplex invests in Norway - Economic Freedom Ratings (10 = Max) 9 8 USA GB Denmark Finland 7 Norway 6 5 Sweden 1970 75 80 85 90 95 2000 5 10 Sources: IMF, National Sources, Nordregio & NLS Finland, Fraser Institute, OECD
Why Digiplex invests in Norway - Clean & Sustainable Power Sources Hydro In Total Domestic Electricity Norway 98.5% Brazil 79.8% Venezuela 72.8% Canada 58.7% Sweden 46.1% PR China 16.9% Russia 16.0% India 13.8% Japan 7.7% USA 6.5% Source: Greenfield Property AS
Scandinavia s Lower Cost of Power Yield Huge Savings over 10 years Over 10 years, the difference in power costs of a 20 MW data centre in Norway vs in the UK is 83.6 million. Power savings can be further enhanced when Free Cooling is taken into account, with up to 25% more efficient power usage than without free cooling. Source: World Economic Forum Economist
Why Digiplex invests in Norway - Gross Government Debt (% of GDP, 2013 est.) Sweden Denmark Norway Finland European Union United States 0" 20" 40" 60" 80" 100" 120" Sources: IMF, National Sources, Nordregio & NLS Finland, Fraser Institute, OECD
Why Digiplex invests in Norway Because its Stable, democratic, a law based government Economically strong Business Friendly Skilled, educated population / HR Secure And the less positives?
Investing in Norway the challenges: Scarcity of specialist contractors and experienced operators High levels of leisure time challenging for 24x7 operations Cost of living index Nok 42 Nok 24 Source: The Economist Big Mac Index, January 2014
The DigiPlex Investment in Scandinavia 2002 to 2013 Nok 1.25bn 80+ Critical Services Customers A Skillfully Trained Specialist Workforce 2014-2015 Nok 1bn Air to Air New Technology Development Oslo Site No. 3 (DigiPlex FET) The Launch pad to other Nordic countries
The DigiPlex FET Data Centre for Evry Two new data centres. 12,000m 2 gross, 4,200m 2 net computer halls White Space. 20 year term customer agreement.
THE DATA CENTRE HALLS @ FET WILL BE X5 THIS ROOM
The results of the DigiPlex Investment in Norway Largest Data Centre player in Norway 90+ Long Term Services Customers 46% Of Customers are Government Affiliated A platform for further Nordic growth Trusted
DigiPlex Customer Satisfaction Survey Results 4.6 4.4 4.2 4 Very Satisfactory 3.8 3.6 3.4 2008 2009 2010 2011 2012 2013 4 or more is highest rating: Very Satisfactory
The DigiPlex Mission Our mission is to provide the most reliable, independent IT housing service available in Scandinavia
Our Growth Plan - Challenges for DigiPlex & Norway Will Norway provide competitively priced sustainably sourced power? Will Norway incentivise inward investment? Will Norway invest in improved international connectivity?
Data Centres that never, never, ever go down Thank you for your attention www.digiplex.com BMurphy@digiplex.com