Data Center Locations
How to measure risk
Global real estate firm Cushman & Wakefield with mission-critical design consultants hurleypalmerflatt have released a Data Center Risk Index that ranks 20 countries according to the top risks that are most likely to affect the successful operations of a data center
Data center downtime can potentially cost millions in lost revenue and even threaten the viability of a business. Recent natural disasters in Japan, New Zealand, Iceland, the US and Australia, and political unrest in parts of North Africa and the Middle East, have highlighted the impact that extreme acts of nature and political instability can have on business continuity. Other factors, however, such as high energy costs, poor international bandwidth and protectionist legislation are also risks that need to be taken into account.
Although the Data Centre Risk Index clearly demonstrates that some countries provide a better overall environment for data centers, commercial considerations are typically a key driver informing location decisions.
Figure 2 – Data Center Risk Index KEY
1st Quartile lowest risk 2nd Quartile 3rd Quartile 4th Quartile highest risk
CATEGORY WEIGHTINGS SUB-CATEGORY WEIGHTINGS 35% 35%
20% 20% 20% 20% 20%
25% 25%
5% 50%
33% 33% 33%
Energy – cost per kWh (source: International Energy Agency / Cushman & Wake eld Research)
International bandwidth – megabyte per capita (source: ITU)
Ease of doing business (source: World Bank)
Corporation tax (source: Deloitte)
Labour – cost of labour / hour (source: EIU)
Political stability (source: EIU)
Sustainability – % energy from alternatives (source: International Energy Agency)
Natural disasters (source: Maplecroft)
GDP per capita (source: EIU)
In ation (source: EIU)
Water – availability per capita (source: Food and Agriculture Organization of the United Nations)
Figure 1 – Sub Category Weightings
The need to be in a particular territory will often take precedence over the risks highlighted by the Index.
Research carried out by hurleypalmerflatt and Cushman & Wakefield during the development of the Index highlighted a weakness in industry decision-making processes, and a general failing to take into
account certain potential risks associated with investing in data centers overseas.
An emerging global market Global technological advances mean it is no longer essential for a data center to be located close to the end-user. Depending on the function of the data center, providers and owner-occupiers are now able to consider
1 2 3 4 5 6 7 8 9
KEY
1st Quartile lowest risk 2nd Quartile 3rd Quartile 4th Quartile highest risk
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Four primary risks are highlighted below, showing the three lowest risk and three highest risk countries for each category.
1 2 3 4 5 6 7 8 9
10
85 HONG KONG 51
82 UNITED KINGDOM 81 SWEDEN 80 QATAR
78 SOUTH AFRICA 76 FRANCE 73 AUSTRALIA
JAPAN INDIA
11 16 15 8 2 1
12 5
100 UNITED STATES61 POLAND IRELAND
86 GERMANY 19 20
91 CANADA60 6754 15 56 CHINA 54
10 11 12 13 14 15 16 17 18
RUSSIA 16 7
131 20
184 193 102
10 19 20 5
13
144 17 11
14 18 16 6
19 10 9 2
183 8
15 13 11 7
173 9 4
20
12 11 1
12 17 14
713 2
920
144 19
11 18 8 8
14 19
100 UNITED STATES
7 85 HONG KONG
82 UNITED KINGDOM 81 SWEDEN 80 QATAR
78 SOUTH AFRICA 76 FRANCE
SINGAPORE BRAZIL
11 16 15 8 2 1
1
4 3 2
4 12
14 4
10 19 20 5
15 12
8
10 2 3 8
19
3 4
13
91 CANADA 6754 15 86 GERMANY
15 13 11
1
12 11 1
12 17
73 AUSTRALIA 513714 71 70
6 19
67 NETHERLANDS 64 62
SPAIN 18
14 8
20 4
11 18 8 8
14 19 6 5
17612917 9 3
10 3
715
161 1 4
126
211 2 8
20 15 3
RANK
INDEX SCORE 1ST = 100
TEIR 3 RANK
TEIR 2
TEIR 1
COUNTRY
INDEX SCORE 1ST = 100
COUNTRY
ENERGY COST
INT’L BANDWIDTH
ENERGY COST
EASE OF DOING BUSINESS
INT’L BANDWIDTH
CORPORATION TAX
EASE OF DOING BUSINESS
COST OF LABOUR
CORPORATION TAX
POLITICAL STABILITY
COST OF LABOUR
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