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impactEDIncreasing Competitiveness toAttract Data Center Projects toVirginiaMIKE GRELLAGRELLA PARTNERSHIP STRATEGIESJUNE 14, 2021
Mike GrellaFounder, CEOGrella Partnership StrategiesMike Grella brings over 26 years of domain expertise incommunity, economic, workforce development, site selection,public finance, infrastructure development, incentivenegotiations, and tax law as an attorney & advisor.Mike founded and led Amazon & Amazon Web Services’ globalEconomic Development function from 2012-2019 and wasresponsible for expansions representing nearly 15 billion ofcapital investment and over 100,000 new jobs including billionsof dollars of capital investment in Virginia.He founded GPS in 2019 to support organizations with strategicplanning, e-commerce & data center site validation, marketing,attraction & negotiations, with a focus on community benefit,DEI, sustainability, smart cities & Industry 4.0 technologies.
DATA CENTER INFRASTRUCTURE & ENERGY DEMAND DRIVERS2021 GLOBAL DATA CENTER INFRASTRUCTURE SPEND 200B 1 5G DEPLOYMENT LAST MILE EDGE COMPUTING IOT APPLICATIONS E-COMMERCE SOCIAL MEDIA VIDEO STREAMING VIDEOCONFERENCING MOBILE APP USAGE REMOTE WORK/LEARNING1: spend-2021
THE STATE OF THE VIRGINIA DATA CENTERMARKET IS STRONG! WORLD’S LARGEST DATA CENTER MARKET, #1 IN NEW DATACENTER DEVELOPMENT GLOBALLY IN 2020 (C&W) OVER 15,000 FULL-TIME JOBS AND 50,000 FULL-TIMEEQUIVALENT JOBS (NVTC)* HIGHEST CONCENTRATION OF TECH TALENT IN US (CBRE) NOVA ACCOUNTED FOR 70% OF ALL DATA CENTER LANDACQUIRED IN PRIMARY US MARKETS IN EARLY 2020 (CBRE)*EXTRAPOLATION OF DATA FROM 2020 NVTC REPORT: THE IMPACT OF DATA CENTERS ON THE STATE ANDLOCAL ECONOMIES OF VIRGINIA
THE STATE OF THEVIRGINIA DATACENTER MARKETIS STRONG! DATACENTEREXPANSIONBEYOND NOVA,SPREADING THEWEALTH! HAMPTON ROADS: POINT ONE, EDGE CONNEX, ACA INTL DATACENTERS. OFFSHORE WIND MAREA/BRUSA SUBSEA CABLES ROANOKE: MFS, LUMOS NETWORKS SHENANDOAH VALLEY: DBT DATA, LUMOS NETWORKS NOTHERN SHENANDOAH VALLEY: MIDDLETOWN DATA CENTER CENTRAL VA: LUMOS NETWORKS, EQUINIX RICHMOND METRO: QTS, DIGITAL FORTRESS, BANK OFAMERICA, FACEBOOK SOUTHWEST VA: SAIC, MINERAL GAP, ONE PARTNER NEW RIVER VALLEY: BRUSH MOUNTAIN DATA CENTER SOUTH CENTRAL VA: MICROSOFT, PERSPECTA
DATA CENTER SITE SELECTION: THE POWER OFPOWER POWER RELIABILITY, GUARANTEED UPTIME,RESILIENCY IS THE NAME OF THE GAME! POWER SUPPLY, ABILITY TO SCALE WITH CUSTOMERDEMAND CURVE. CRITICAL TO HYPERSCALERS INFRASTRUCTURE READINESS – ON-SITEGENERATION, SUBSTATIONS, TRANSMISSION LINES FUEL MIX OF ELECTRICITY GENERATION: ACHIEVING“NET ZERO” EMISSIONS AND AGGRESSIVELYDEPLOYMENT OF RENEWABLE POWER PURCHASEAGREEMENTS. SEAMLESS INTEGRATION WITH COMMUNITY/LOCALED ORGANIZATIONS & UTILITY PROVIDER – SPEAKFROM THE SAME SCRIPT
“DATACENTERMATCH.COM”WHAT DATA CENTER OPERATORS SEEK IN A PARTNER THE “EASY BUTTON” - SITE SELECTIONTEAMS ARE OVERWHELMED WITHDEMAND FOR PRODUCT. CERTAINTY, OR IF NOT CERTAINTY, HIGHCONFIDENCE IN YOUR ABILITY TO DELIVER(AND SCALE). THE NEED FOR SPEED. HOW QUICKLYCAN YOU MOVE?
TYPES OF DATA CENTER DEPLOYMENTS HYPERSCALE – LARGE SCALE CAMPUSES CAN BE FARTHER AWAY FROM END USERS PRIVATE/ENTERPRISE “ON-PREMISE” - TYPICALLY NEAR/AT HEADQUARTERS COLOCATION – DATA CENTER RENTING OUT RACK SPACE TO THIRD-PARTIES, SMALLER THANHYPERSCALE & GENERALLY GEOGRAPHICALLY CLOSER TO END USERS & IN METRO AREAS EDGE – SMALLER DISTRIBUTED “LAST MILE” DATA CENTER TO SUPPORT AI/IOT/5G/SMARTCITIES/AUTONOMOUS VEHICLES. DISASTER RECOVERY – MORE LIKELY TO LOCATE OUTSIDE MAJOR URBAN CORES AND DISTANTFROM END USERS PRIMARY LOCATIONS/HQASSESS THE FEASIBILITY & LIKELIHOOD OF YOUR COMMUNITY ATTRACTING EACH TYPE OFDEPLOYENT AND MARKET YOUR SITES ACCORDINGLY. CHASE VIABLE LEADS, NOT UNICORNS.
BEST PRACTICES FOR COMMUNITY DATA CENTERCOMPETITIVENESS WHILE COST IS IMPORTANT, SPEED TO MARKET & INFRASTRUCTURE READY SITES WIN.E.G., SKYROCKETING COST OF LAND IN NOVA STILL NOT STIFLING DEMAND MAINTAIN HEALTHY TAX BASE TO REINVEST IN INFRASTRUCTURE. LEVEL OF INCENTIVESOFFERED SHOULD BE BASED UPON REALISTIC MARKET COMPETITION COLLABORATE WITH END USERS TO SOLVE NIMBY AND LOCAL CHALLENGES.E.G., AMAZON H&M EXPANSION IN CHANTILLY AVOIDS NEIGHBORS & TRAFFIC. LAND VS. DATA CENTER LAND – KNOW THE DIFFERENCE. SOPHISTICATED USERS HAVE ALREADY DONE THEIR HOMEWORK. DON’T HIDEWEAKNESS. ADDRESS PROACTIVELY AND HAVE A PLAN. BE ABLE TO WALK THE TALK ON RENEWABLE POWER, DIVERSITY & INCLUSION, TALENT.
BEST PRACTICES FOR COMMUNITY DATA CENTERCOMPETITIVENESS: ACTION STEPS FOR HYPERSCALE RFPs, ASSEMBLE AN ALL-STAR TEAM TO RESPOND & SEAL THE DEAL(END USER HAS A CADRE OF LAWYERS, ACCOUNTANTS, ECONOMISTS, ENGINEERS) FOR COMMUNITIES WITHOUT A SIGNIFICANT DATA CENTER PRESENCE, CONSIDER A“MOCK RFP” – NO RISK SIMULATION TO PRACTICE DEVELOPING A COMPELLING,COHESIVE RESPONSE. HAVE YOUR ACT TOGETHER AND DO NOT GUESS! CONDUCT DATA CENTER USE SPECIFIC SITE VALIDATION STUDIES & CERTIFICATIONS: AEP& DOMINION CERTIFIED DC SITE PROGRAMS, VA BUSINESS READY SITES PROGRAM LEVERAGE AMERICAN RESCUE PLAN ACT FUNDS TO IMPROVE BROADBAND, WATER,SEWER INFRASTRUCTURE AS NEED. HYPERSCALERS CANNOT BE CONSTRAINED. CONTINUE TO INVEST IN RURAL & SMALL METRO TECH HUBS: GROWING TECH TALENT LOW COST OF DOING BUSINESS INNOVATION PIPELINE QUALITY OF LIFE SUCCESS
COMMUNITY DATA CENTER ATTRACTION BEST PRACTICES:OPTIMIZE YOUR DIGITAL/SOCIAL FOOTPRINT VERY FEW COMMUNITIES & ED ORGANIZATIONS DEDICATE BUDGET TO PROMOTETHEIR DATA CENTER READY SITES. OPPORTUNITY TO STAND OUT ASSESS USER INTERFACE (UI)/USER EXPERIENCE (UX) FOR DATA CENTER SITES ONLINE ONLINE MARKETING MATERIAL MUST MATCH WHAT END USERS LOOKING FOR CONDUCT WEBSITE AUDIT: IS YOUR COMMUNITY & SITES DISCOVERABLE IN ONLINESEARCH? CONNECT DIRECTLY VIA SOCIAL MEDIA WITH DATA CENTER END USERS &INFLUENCERS. DON’T BE SHY! MANY END USERS RELY UPON THEIR INTERNAL TEAM. CONSIDER IN-PERSON & VIRTUAL FAM TOURS WITH DRONE FOOTAGE
QUESTIONS?MIKE GRELLAGRELLA PARTNERSHIP RELLAPARTNERS.COM@MIKEGRELLA@GRELLAPARTNERS
data center site selection: the power of power power reliability, guaranteed uptime, resiliency is the name of the game! power supply, ability to scale with customer demand curve. critical to hyperscalers infrastructure readiness -on-site generation, substations, transmission lines fuel mix of electricity generation: achieving
