Data Center Location Considerations: Geography, Energy, and Politics

A lot of factors concern data centers. Weather may affect the choice of location, but there are typically several additional considerations such as local economy status, customer proximity, energy availability and networking links, and, most significantly, politics. In this post, we explore key locations for data centers and highlight trends behind the planet’s most thrilling (hottest) and interesting (coolest) locations.

Wherever there is strong demand for data centers, builders must meet public needs through a set of technological choices and trade-offs designed to ensure the facility provides its ultimate customers with secure digital services.

Electricity

During its lifespan, electricity will make up more than half of a data center’s overall cost, and operators aim to reduce this expense. This involves choosing technologies that operate efficiently and making geographical choices, such as locating where energy costs are low or where renewable energy is abundant to reduce environmental impact.

Political decisions also play a role. Facebook and other major hyperscale operators strategically choose locations in American states or European countries to gain the most generous tax incentives. For instance, in Scandinavia, Sweden, Denmark, and Finland offered contrasting tax exemptions for data centers. In the U.S., Utah and New Mexico competed in 2016 to offer Facebook the best terms, with New Mexico ultimately prevailing.

Cooling and Climate Considerations

Data center constructors plan cooling systems according to the location. Servers use electricity, and all energy consumed is eventually released as heat that must be extracted to maintain equipment within safe operating temperatures. Extracting heat is most efficient in cooler climates, where outside air can be used via filters and heat exchangers.

According to ASHRAE thermal guidelines:

• Free-cooling can be used part of the year in most of the Northern Hemisphere’s populated regions.
• It can be used year-round in northern countries like Iceland and Sweden.
• Mechanical cooling is necessary near the equator, in locations like Singapore.

Simultaneously, cheap renewable electricity is available in Iceland and Sweden but not in Singapore. Despite these factors, Singapore thrives as a data center hub, whereas Iceland remains relatively exotic. Location still carries significant weight, aside from software providers tolerant of longer response times.

The Role of Edge and Hyper-Efficient Data Centers

The Internet of Things and increased digital content demand are driving the growth of “edge” computing, placing resources where data is most needed. Virtual technology is now required in nearly every location where people are present.

At the same time, back-end resources such as analytics and reporting can be centralized in locations accessed less frequently. Important customer data that does not require regular access can be stored safely elsewhere. This is where hyper-efficient data centers excel.

Ultimately, virtually every place on Earth will have a role in the virtual world we are creating. The job of technology is to deliver virtual tools to wherever they are needed.