GREATER MSPINVEST. GROW. PROSPER
MISSION CRITICAL FACILITY DEVELOPMENT
GREATER MSP’S LOCATION ADVANTAGES FOR DATA CENTERS
Minnesota’s commercial electric bill for medium-size users is 17 percent lower than the U.S. average.
State Cents per Kilowatt/Hour Rank
Washington 7.37¢ 3Iowa 7.90¢ 10Nebraska 8.04¢ 12North Carolina 8.18¢ 15Minnesota 8.58¢ 18Illinois 8.64¢ 19Texas 8.96¢ 23Arizona 9.50¢ 29California 13.81¢ 44New York 15.83¢ 50United States 10.32¢ ----
AVERAGE ANNUAL ELECTRICITY PRICE FOR COMMERCIAL CONSUMERS, 2011
MN ELECTRICAL GENERATION FUEL MIX
SUBSTATION LOCATIONS ARE KEY
Great River Energy: Utilities and Data Centers
Tom LambrechtFebruary 11, 2016
28 member cooperatives – 665,000 member accounts2nd largest utility in Minnesota
- $3.9 billion total assets- $1,020 million revenue
880 employees (MN and ND)3,619 MW generation
- 701 MW renewables4,696 miles transmission
Great River Energy
Economic Development
Planning
•Identifying resources•Assessing opportunitiesPartn
ership
•Individual•Organizational•Strategic
Promotion
•Messaging •Materials•Activities3 P’s
Identifying community assets
Site Inventory■ Overlay Transmission and Fiber capabilities■ Communication and planning■ Reliability Standards
Community readiness■ Shovel ready■ Partnerships■ Marketing
Incentives■ Rebates■ Rates■ Financial
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
Fiber infrastructure
LOW NATURAL DISASTER RISK
Minnesota 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 Minnesota’s $4 million.
LOW NATURAL DISASTER RISK
MINNESOTA’S 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 INCENTIVES
• Large data centers: Investments of $30 million over years • Sales tax rebate on initial/replacement equipment• Sales tax exemption on electricity• Length 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 Name Company City
1 Best Buy Data Center Best Buy Company, INC Bloomington
2 Cologix - Suite 200 Cologix, Inc Minneapolis
3 Compass Data Center Compass Shakopee
4 DataBank DataBank Eagan
5 EdgeConneX EdgeConneX Eden Prairie
6 Irongate - Woodbury Irongate Woodbury
7 One Neck One Neck IT Solutions Eden Prairie
8 Stream IP Stream Minneapolis, LLC Chaska
9 UHG - Chaska United Health Group Chaska
10 UHG - Elk River United Health Group Elk River
11 Valley View Data Center SuperValu Eden Prairie
12 ViaWest Data Center - Chaska ViaWest Chaska
13 Thomson Reuters Thomson Reuters Eagan
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 company’s 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 example– DataCard– Emerson Process Management– Amazon
MANUFACTURER’S NEEDING BROADBAND CONNECTIVITY
Data Centers Site Assessment
Create industry expertise Quick response time Consistency in response Reputation/leadership
Data Centers Site Assessment
• Specialized skills at all levels involving network, computer systems, and database
• High quality talent generally a requirement
Availability of fully redundant network access (preferably existing access to SONET or Metro-E rings)
Excess capacity of high bandwidth fiber and equipment
PoP proximity
Comprehensive availability of service offerings Diversity in service provider presence
Plentiful supply, high quality, and reliable capacity
Redundancy usually a must-have
Low to moderate cost power (both present and future)
Power from renewable sources increasingly a priority
Highly reliable physical infrastructure supporting continuity and accessibility
Minimal risk of disruption of operations due to localized events
Low cost of build-out (real estate, construction) Sizable and flexible sites allowing for future
expansion
Data Center Location Drivers
Telecom
Fiber Optic Network
Talent Availability
Real Estate
Electric Power
Risk Profile
Data Centers Site AssessmentUtility Infrastructure Maps Particular emphasis on electric power
and fiber Also including water, wastewater,
natural gas
Transportation Maps Road (including ingress, egress) Distance to rail, airports, construction
(etc.)
Geographic Data ALTA survey
illustrating construction flexibility
Topographic map Flood plain and wetlands
delineation Phase I environmental
assessment, geotechnical study results
Maps and other documentation of climate and natural disaster occurrences
Aerials and Maps Zoning map of site and
surrounding area Aerial view indicating all
proximate industrial, commercial and residential uses
Power intensive industrial operations (5-mile radius)
Risk prone industrial operations (presenting risk to workforce accessibility or data center uptime)
Physical Geography Site Surroundings
Infrastructure
Data Centers Site AssessmentMarket Comparisons
1. Omaha/ Council Bluffs/ Lincoln:– Google invested over $1.5B (since
2008), multiple facilities– Cosentry 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 talent
Source: 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 members Round 1 Aug-2014 5 sites selected for on-site evaluation in Nov/Dec;
■ 20+ acres■ at least two fiber service providers■ <100 miles from a major airport■ >1 mile away from rail line■ no chemical plants within 1 mile■ no nuclear plant within 10 miles
100 Plus Acres Five RFI’s in MN Very large capacity needs
■ (100’s of MW available) Integrated responses GRE has two sites fully certified
Mega Sites
RECENT MN MAJOR DATA CENTER SUCCESSES
GREATER MSP DATA CENTERS
GRE Economic Development contacts
Tom Lambrecht – Manager, Economic Development Services763-445-6105 [email protected]
Jeff Borling – Economic Development Lead218-355-8088 [email protected]
Erin Sparks –Economic Development Specialist763-445-6113 [email protected]
FORWARD TOGETHER.ACCELERATING IMPACT.BECOMING GREATER.
#BecomingGREATER
