Data center migration, location is still important

The location of the of data center migration plays a vital role in the decision-making process of each company. The enterprise is investing in where to choose, where to build it, where the employees come from, and where and how to manage the data.
The needs of new data centers in the United States, Europe and the Far East are well documented. The rapid spread of cloud computing services and the emergence of a business model based on the Internet of things are promoting growth in the key data center hub. The Universal Data Protection Act (GDPR) for data protection, privacy and safety, which is to be implemented in Europe, will take effect in the whole EU in May 2018. It also provides a catalyst for the growth of data center market.

Although location is crucial for all investors, operators and developers, the construction cost of data centers and the specific market that affect different data center facilities and technology installation are the real driving factors.
Considering the complexity of market data center construction, highly dispersed nature, other operators with competitive price, as well as providing or selling space requirements, enterprises in the process of planning and construction of the data center as soon as possible to understand the cost, and compared with other operators.
This is the data center cost index TurnerTownsend company (Data Center Cost Index) analysis, pointed out that the reason for the large number of enterprises have invested cost including manpower and materials, in the construction of the data center, and compare the 18 global data center market has built new technology and project cost.
These findings provide an in-depth understanding of the market dynamics of these data center pivot and provide an important benchmark tool for data center operators and contractors.
The index shows that New York, San Francisco, London, Washington, and Hongkong are the five most expensive cities to build data centers in the world.
The common trend of these five data centers is high contractor profitability, stable cost upgrading, and market demand, which is higher than the supply of experienced data center contractors.
However, the index also reveals a major construction gap between cities. The cost of construction in New York and San Francisco is 25% higher than that of other existing data center markets. At the same time, the costs of Amsterdam, Paris and Stockholm are 10% lower than that in London.
The lowest cost of data center construction is Brazil's St Paul and India's Mumbai market, because its labor, material and equipment cost is lower than that of North America and European competitors.
The challenges facing all the major data hub hubs, and a challenge that will continue to exist in 2018 are the lack of skilled labour.
In the US, data center staff are more willing to migrate or move to data centers across the world than other parts of the world, which makes data center customers easier to attract high-quality delivery teams.
Similarly, data center contractors in the UK and Ireland will continue to ensure projects in the continent, especially without local data center expertise.
This trend is likely to affect the market in London and Dublin, and Africa is being driven by high margin work: professional contractors in Frankfurt to achieve up to 15% profit margins, Germany Frankfurt's profit rate is almost in London (6.5%) and Ireland (5%) Dublin three times.
As one of the world's fastest growing data center markets, Dublin has been rated as one of the most cost-effective sites for the 2017 construction data center. However, with the booming development of Irish construction industry, the construction cost inflation rate in 2018 is expected to reach 8%.. Although tax incentives still attract data center operators, Dublin lacks available electricity, which will continue to face construction challenges.
There is no doubt that the cost of the global data center market is very different. Therefore, understanding the cost of data center construction and installation as well as the continuous analysis of these data is very important for enterprise management cost and helping to deliver data center assets on time and in budget.