broadband considerations in site selection and data centers

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GREATER MSPInvest. Grow. Prosper

Mission Critical Facility Development

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GREATER MSPs Location Advantages for Data Centers

Minnesotas commercial electric bill for medium-size users is 17 percent lower than the U.S. average. StateCents per Kilowatt/HourRankWashington7.373Iowa7.9010Nebraska8.0412North Carolina8.1815Minnesota8.5818Illinois8.6419Texas8.9623Arizona9.5029California13.8144New York15.8350United States10.32----

AVERAGE ANNUAL ELECTRICITY PRICE FOR COMMERCIAL CONSUMERS, 2011

MN Electrical Generation Fuel Mix

Substation locations are Key

Great River Energy: Utilities and Data CentersTom LambrechtFebruary 11, 2016

28 member cooperatives 665,000 member accounts2nd largest utility in Minnesota$3.9 billion total assets$1,020 million revenue880 employees (MN and ND)3,619 MW generation701 MW renewables4,696 miles transmissionGreat River Energy

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Economic Development3 Ps

Planning: Inventory of available land and buildings Site assessments Infrastructure improvements Organizational strategy and goals Outreach activities Tracking & measuring success

Partnerships: City and county staff and elected officials State regional business development representatives Business & economic development organizations Local colleges and universities Financial institutions & lending organizations

Promotion: Message is clear and consistent Marketing materials Print Web Regularly updated Meetings, conferences, trade shows, business visits

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Identifying community assetsSite InventoryOverlay Transmission and Fiber capabilitiesCommunication and planningReliability StandardsCommunity readinessShovel readyPartnershipsMarketing IncentivesRebatesRatesFinancial

Great National connectivity

Rich Metro fiber network

A far reaching fiber network already links Greater MSP locations to the rest of the nation.

City of Eagan

Latency Speed to market

Power Infrastructure

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Fiber infrastructure

Low Natural Disaster RiskMinnesota offers a low risk of severe weather related events. Lack of interruptions means operational savingsfor you and a safe and secure environment compared to most other locations across the U.S.

Floods: MN has a lower flood risk when compared to Alabama and Iowa. The total cost of damage caused by flooding between 2000-2009 was 42% and 61% higher respectively.Snow: Damaged caused by snow and ice between 2000 and 2009 was significantly higher in North Carolina ($219mm) compared to Minnesota ($9mm). Hurricanes & tropical storms: Minnesota does not have tropical storms. Damage caused by these storms created $3.7 billion in damage in Alabama and $540 million in damage in North Carolina between 2000 and 2009.Wild Fires: Minnesota has minimal risk when compared to Arizona for wild fires. Damage caused by wild fires in Arizona was $137 million between 2000-2009 when compared to Minnesotas $4 million.

Low Natural Disaster Risk

Minnesotas Climate Can Be an Advantage

Free Cooling

Potentially, a data center could cool all of their servers using outside air year-round. By not using chillers/air conditioners, the potential energy savings could be in the millions. Warm weather locations would not provide this option.

Minnesota offers approximately 30% more free cooling hours compared to warmer climates like North Carolina and could save approximately 7% in overall energy savings with similar facilities.

Data center operators can save approximately almost $10 million over 10 years. (Based on the 20MW user )7,550 hours of free cooling per year

Business Assistance Programs for Mission critical facilities

State of Minnesota Data Center incentivesLarge data centers: Investments of $30 million over years Sales tax rebate on initial/replacement equipmentSales tax exemption on electricityLength of incentive: 20 years or 2043.Small data centers: MN provides a sales tax exemption on data center equipment that is used primarily for electronically transmitting results retrieved by a customer of an online computerized data retrieval system.

Data Center NameCompanyCity1Best Buy Data Center Best Buy Company, INCBloomington2Cologix - Suite 200Cologix, IncMinneapolis3Compass Data CenterCompassShakopee4DataBankDataBankEagan5EdgeConneXEdgeConneXEden Prairie6Irongate - WoodburyIrongateWoodbury7One Neck One Neck IT SolutionsEden Prairie8StreamIP Stream Minneapolis, LLCChaska9UHG - ChaskaUnited Health GroupChaska10UHG - Elk RiverUnited Health GroupElk River11Valley View Data CenterSuperValuEden Prairie12ViaWest Data Center - ChaskaViaWestChaska13Thomson ReutersThomson ReutersEagan

Data Centers accessing MN Incentive

Manufacturing advances, such as 3D printing, suggests a growing need for broadband connectivity. Broadband is a key in addressing the competition for customized products for increasingly segmented markets. Broadband use varies widely among companies and is unique to their business and management environment. Broadband effectiveness is tied to the companys approach to its data management and communication flows. As digital design in manufacturing increases, the importance of intellectual property and data security increases. Broadband infrastructure and connectivity draws companies seeking new locations and enables existing companies to expand. Demands for Broadband by manufacturers continues to grow

Shakopee/Scott County exampleDataCardEmerson Process ManagementAmazonManufacturers needing broadband connectivity

Data Centers Site AssessmentCreate industry expertiseQuick response timeConsistency in response Reputation/leadership

Data Centers Site Assessment

Specialized skills at all levels involving network, computer systems, and databaseHigh quality talent generally a requirementAvailability of fully redundant network access (preferably existing access to SONET or Metro-E rings)Excess capacity of high bandwidth fiber and equipmentPoP proximityComprehensive availability of service offeringsDiversity in service provider presencePlentiful supply, high quality, and reliable capacityRedundancy usually a must-haveLow to moderate cost power (both present and future)Power from renewable sources increasingly a priority

Highly reliable physical infrastructure supporting continuity and accessibilityMinimal risk of disruption of operations due to localized eventsLow cost of build-out (real estate, construction)Sizable and flexible sites allowing for future expansionData Center Location DriversTelecomFiber Optic NetworkTalent AvailabilityReal EstateElectric PowerRisk Profile

Data Centers Site Assessment

Utility Infrastructure MapsParticular emphasis on electric power and fiberAlso including water, wastewater, natural gasTransportation MapsRoad (including ingress, egress)Distance to rail, airports, construction (etc.)Geographic DataALTA surveyillustrating construction flexibilityTopographic mapFlood plain and wetlands delineationPhase I environmental assessment, geotechnical study resultsMaps and other documentation of climate and natural disaster occurrencesAerials and MapsZoning map of site and surrounding areaAerial view indicating all proximate industrial, commercial and residential usesPower intensive industrial operations (5-mile radius)Risk prone industrial operations (presenting risk to workforce accessibility or data center uptime)Physical GeographySite SurroundingsInfrastructure

Data Centers Site AssessmentMarket Comparisons

1. Omaha/ Council Bluffs/ Lincoln:Google invested over $1.5B (since 2008), multiple facilitiesCosentry expansion of ~$10M (2013)

2. Des Moines: Facebook invested $1.5B (2013)Microsoft investing $2B (2014)

3. Dubuque/Cedar Rapids:IBM investing $20M (2010)Enseva invested $17M (2012)Involta expansion $4M (2013)

4. Madison/Milwaukee:Harley Davidson invested $25M (2010)Data Holdings expansion ~$10M (2014)

Proximate Data Center (DC) Regions: Areas chosen by GRE due to recent data center growth in each region and presence of IT talentSource: Data center investment data sources from individual state and local economic development announcements/websites and local news releases.

GRE Data Centers Site Assessment

Hired Deloitte consulting; worked with membersRound 1 Aug-20145 sites selected for on-site evaluation in Nov/Dec; 20+ acresat least two fiber service providers1 mile away from rail lineno chemical plants within 1 mileno nuclear plant within 10 miles

100 Plus AcresFive RFIs in MNVery large capacity needs (100s of MW available)Integrated responsesGRE has two sites fully certified

Mega Sites

Recent MN Major Data Center Successes

GREATER MSP Data Centers

GRE Economic Development contacts

FORWARD TOGETHER.ACCELERATING IMPACT.BECOMING GREATER.#BecomingGREATER

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