I had the pleasure of attending the TISP forum on the Eagan data center. It was an interesting discussion on the potential economic impact of data centers. I think it was Commissioner Phillips who commented that while the data centers themselves might not drive a lot of jobs that the infrastructure (especially broadband – fast, reliable, secure) required to support a data center made an area more attractive to other businesses that often do bring more jobs. Minnesota is a natural fit for data centers with our cool temperature, affordable energy and new legislation that support data centers.
It was also fun to hear from Tom Garrison from the City of Eagan. Tom was on the original Minnesota Broadband Task Force and he really spoke about how that position fit so well with Eagan’s plan and perhaps pushed them forward. The Task Force recommendations turned into the broadband bill that was signed in 2010 – and is now calling for ubiquitous better broadband by 2015. Tom spoke about the recommendations less traveled in the report – striving for security, redundancy, collaboration. These have been the cornerstone of the work done for the data center in Eagan. Very nice to hear the recommendation getting deployed – he success of the project speaks to the recommendations being a potential roadmap for cities, counties and the state. (And indeed, the current Task Force is using the original report to flesh out a roadmap for the state.)
I tried to take pretty good notes as folks spoke – and Tom was kind enough to send me his presentation to share – although I want to note that images from the PPT may not be reproduced without permission of Five 9s Digital.
Making the Connexion aka Public/Private Partnership to improve Minnesota Connectivity
Cities are looking to land data storage building centers and we’re excited to hear how they have been working.
Commissioner Mark Phillips – Comments on data center legislation that passed last year.
Soon into his tenure, he ran into an article that listed Minnesota as incompatible in terms of data center site selection. That didn’t make sense, energy was not comparatively expensive here, plenty of cold, lots of room. The Chamber of Commerce started pushing the data center agenda. It was a little clandestine because it hadn’t been part of Dayton’s agenda. We had a few bills – but they didn’t get out of committee. There wasn’t a party split – but everyone had their issue.
As a State we had to decide where we wanted to focus our attention. We didn’t need to write big checks due to other attractive characteristics – but we needed some money. We had lost to Google and Apple in the previous months. Cloud computing is a window right now – but growth will plateau. Fast forward and the State shuts down. It’s all after hours discussions. Commissioner of Revenue said wnow might be a good time to bring the bill forward – Senator Ortman helped bring the bill to the table.
We got a lot, but we didn’t get everything requested. Data centers flip out equipment every 4-5 years. We got 20 year exemptions on equipment, cooling, energy and software but not building materials. Minimum requirements are 30,000 square feet and at least $50 million in first two years.
Maybe not the perfect way to get legislation passed – but we got it done. The bill was heard.
It’s important because data center will drive infrastructure and growth in other areas. Infrastructure always supports greater growth. “Broadband is becoming as important as sewer and water.”
Questions:
Is anything happening with this legislation this year?
Not that we’re aware of. It’s tough when there’s no budget.
It would be nice to stretch advantages to multiuser centers. Although at the time there were some big deals hanging in the balance.
How many of these deals are happening around the country?
Many – warmer climate states are putting money on the table. Colder climate might not need to try so hard to level the playing field.
Tom Garrison –
Going back to the Task Force – the recommendations are really only as good as the power to deployment.
While the Task Force report has had legs – there are a few key ingredients that did not capture the public’s attention the way we should:
How do we reduce vulnerability?
How do we increase security?
How do we work together?
How do we increase redundancy?
In Eagan, we’ve tried to host the conversation to get questions addressed.
Eagan has been mapping their fiber connectivity. It helps the city assess their actual infrastructure and define/prove needs.
Eagan is deploying open source city fiber and duct to Eagan businesses. We are looking for providers to use the infrastructure to serve area businesses. We are getting RFPs for second phase of the project. We’re building 16.72 miles of fiber.
XO Communication is working on the first phase of fiber. One difficulty has been creating an alternate route to existing fiber – to improve redundancy.
If we had been waiting for the Task Force recommendations to come to fruition – we’d still be waiting. We decided to move ourselves forward. We’ve found that public-private partnership has worked well.
Crowded Right of Way! Crowded Right of Way has been a problem. There is no more room in certain major conduit through ways. Open source plans would help reduce crowding.
QUESTIONS
What if it weren’t carrier neutral?
Then it would be difficult to use public dollars – because you might be choosing winners and losers. We need a few more data centers.
From Rick King:
There’s a need for a second connection point for the state. The public-private partnership is under-exploited and this is a nice example of when is works. We need to do more – the beneficial nature is good for both sectors. Carrier neutral is also very valuable. It would be nice to see more data centers – there is discussion about reducing requirements for new data centers to take advantage new legislation. As a company we’ve made no commitment to use the data center. We might in the future – but we just want to help the city make improvements.
The broad discussion in the Task Force Report really gave birth to the idea of a project like this.
In Eagan we put together a tech task force – and that has helped us hugely. We get the local businesses to lend the city their CIOs. It’s been a good way to open communication to collaboration, which can be akin to dig once.
Public-Private-Partnership
What’s the key element here? In case of legislation – it was entrepreneurial spirit. But how do we move from accidental good thing to public-private partnership being the regular (and good) way?
Phillips:
In workforce development, Pawlenty issued an All Hands on Deck. We liked it and re re-instituted it. Maybe the same will happen with the Broadband Task Force.
Dep of Commerce:
The Task Force is meeting next week at Unisys. Department of Commerce is sponsoring agency for the Task Force. The most recent report builds on previous reports. There is some frustration is rebuilding some wheels. But there is still some education required. One legislator thought broadband was just for watching videos.
Tom:
Offered a personal comment on legislation that would have prohibited municipal networks. By some readings, the first iteration of the bill would have banned even government to government networks, as if in today’s world government, like industry, doesn’t need to move data quickly and efficiently. Second, banning the expansion of municipal networks that allow providers greater access to customers is contrary to the intent of the MN Ultra High Speed Broadband Task Force’s unanimous recommendations in 2009.
What’s happening with the build? (To Brett Severson from Jones Lang LaSalle)
We have a lot of activity in the building right now. We have proposals out for twice as much space as we have. We don’t plan on going on spec. We need an anchor tenant. Activity is high. As soon as we land a portion of one of these phases, we’ll take off. Then we expect exponential growth.
A while back, there were about 17 entities interested date centers. Is there enough need for that?
When we did our feasibility – the TCs was said to be underserved (conservatively) by 250,000 SF of data centers.
Brian Ginkel from Jones Lang LaSalle:
We’re seeing a lot of trends. Data centers can get antiquated – especially with cloud computing. Large companies may want to build their own – but folks with Tier I or II in the past are now looking at outsourcing. They want to take data centers off campus – increase redundancy and decreased costs and maintenance.
The State is putting out an RFP for space. And day now.
Envolta is building in Duluth; they have a number of healthcare companies an anchor tenants.
This market is attractive for disaster recovery plans for folks like Chicago, Des Moines – anyplace 350 miles away. So we work with hotels et al to make access easy.
Different kinds of users:
Universities & colleges need lots of computing facilities. So they are creating consortia to take space in data centers – kind of cloud computing.
Maybe the pubic side would act as a dating service for data centers – as the state/local government folks often know about the companies that want space.
Public-Private Partnership in Ramsey County
Bill Coleman
Minnesota Fiber Exchange is another emerging data center. They will be finalizing an agreement soon with Ramsey County to do fiber. The plan is to do a data center on that fiber. It will be a multi-tenant facility in the northern Twin Cities.
Next week the Task Force will hear from Dakota Cities agreeing on one-stop-shop for right of way permission
Next time: County Round up with 12-13 counties that are doing broadband stuff.
Like this:
Like Loading...