Data Center Overview

data_center-1Despite a very depressed global economy in the past 24-months, the data center industry remains very strong. It has been affected by the global credit crunch, which shifted the focus from enterprise data centers to more colocation environments. As digital information demands continue to grow further expansion of the world’s data centers to support the demand is expected to grow at a very predictable pace. Although investment in a data center and its required infrastructure carries a high capital requirement, long-term contracts and high revenues offset the normally associated risk with such high capital costs. According to Tier 1 Research on Internet Datacenter Supply Report 2009, annual data center demand will range from 13% to 17% demand growth in the next five years, however will only realize a supply growth of 5% to 7%. Due to this discrepancy, the data center utilization of existing facilities is forecasted to increase from 70% to 93% over the same time period. As the credit market continues to be strained, colocation services will see substantial increases in demand.conference-rm

Typically, in both colocation markets and ‘outsourced’ enterprise markets, minimum of 10-year leases are considered the norm, with options for further 5 or 10-year leases exercised in most cases. Since equipment, when properly maintained, can outlast leases, there are opportunities to realize significant revenue returns from these leases. In addition, given the sensitive nature of information transfer, the likelihood of a tenant moving to another location is generally low, thus increasing the probability of a lease renewal on a data center.

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Pictorial Schematics of the Baryonyx Data Center.

Given the mix of onshore and offshore wind sites and the differing options of grid, fibre-optic cable and other infrastructure, Baryonyx will pursue a mixed strategy of data centre development that takes advantage of the most recent developments in hardware, software and the provision of services. In detail:

  1. The conventional market of a purpose-built structure to house servers and associated electrical and mechanical hardware is being increasingly challenged by an emerging containerised solution in which the all the hardware is housed in standard size 40’ or 60’ containers and delivered to site in a near ready-to-run state.
  2. The year 2009 has seen rising implementation of Virtual Machine software such as Oracle’s ‘OracleVM’. Virtual Machine software allows BC to both improve the ‘up’ time of our servers while securely hosting multiple individual user instances on single a physical server. This maximises the utilisation of that device and, in turn, optimises the service from a power usage perspective.
  3. These developments in both hardware and software are coming at a time when there is a measurable rise in the demand for both the traditional ‘managed’ Data Center offering and the newer ‘cloud’ hosting solutions. Indeed, Tier1 Research estimates that cloud storage will represent well over half of all cloud revenue this year.