Data Centre Cost Benchmarking - An Insight & Common Pitfalls

Data Centre Cost Benchmarking – An Insight & Common Pitfalls

November 10 2016

Agenda

2

Introductions Questions &

Answers

Conclusion Benchmarking

Data Centres

Examples

Common Pitfalls

Benchmarking

Rational /

Methodology /

Types

Construction

Trends

Global

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3

Introductions

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1 18-Nov-16

Who we are

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Currently working on projects

with a value of US$30bn

across the regions

Global Construction Consultants

• Project Management, Project Controls & specialist

Consultancy

• We service clients in 150 cities in over 40 countries

• Operating for 42 years

• Headquartered in Dublin Ireland

• ISO Accredited - QEHS

18-Nov-16

What we do

8

Program Management Project Management

Knowledge Center Global market cost analysis | Insights

Project Controls

Consultancy Health & Safety Supply Chain

Management

Procurement

Cost Management

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Global offices and project locations

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Offices 17 Global offices throughout Europe,

the Middle East, Asia Pacific and

North America.

Projects 150 cities in over 40 countries

11

Construction Trends


2

Global Trends

12

• Market Size of Top Global

Construction Markets

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Global Trends

13

Share of Construction Spending by Region 2020


Global Trends

14

Global Growth Forecasts for 2015 & 2016 ( % GDP growth )


Global Trends

15

Global Capital Flows in Real Estate in 2015



Netherlands Market

Overall Construction contributed 4.38% to the GDP in Netherlands ( GDP $752Bn )

Data Centre Construction – remains a significant contributor


Netherlands Market

• Current Tender Pricing at 2012 levels.

• In context of tendering, Inflation considered to be flat

• Attractive time to be building?

18

Benchmarking

Rational / Methodology / Types


3

Benchmarking – Rationale & Uses

19

• Part of a greater topic on ‘Market Intelligence’

• Aims to establish how much a company/organisation needs to improve to be at world class levels of performance in their strategy and associated business processes, business results, and critical enablers.

• Identifies gaps by triangulating between current performance, other companies performance, and world class performance

• Increasing appetite from Client

• Uses

—Price Point (Macro & Micro Level)

—Costing Models for Capex / Opex

—Negotiation Tool


Benchmarking – Methodology

20

• Determine What to Benchmark

• Identify Performance Measures

• Identify Benchmark Partners / Sources

• Determine Data Collection / Analysis Plan

• Measure Yourself

• Measure Partner / World-Class Organization

• Analyse Gaps

• Specify Goals / Action Plan to Meet and Surpass

• Implement and Monitor Progress

• Data has NO value unless it is used.


Benchmarking – Practical Advantages

21

• Consistent global approach for all users

• Assists with budget development & forecasting

• Optimisation of Negotiation plans

—Consistent approach to negotiation

—Generation of regional negotiation targets

—Facilitates more in-depth negotiation

• Unit price comparison as well as $/MW

• Availability of historical unit pricing for comparisons

• Helps identify inconsistent pricing from vendors


Benchmarking – Types

22


Example of Time to Market Analysis of 6no. Equip vendors Example of GEO Benchmark Comparisons of 6no. Projects

23

Benchmarking

Data Centre Examples

Common Pitfalls


4

Data Center Experience


31 USA & Mexico

15 Europe

8 Aus/NZ

20 Middle East

7 APAC

120 Data Centers Worldwide

+20 m Sq. ft. of white space

+2000mw Mega Watt critical power

20 UK

19 Ireland

General Benchmarking : International Construction Cost Range Index 2015

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30

40

50

60

70

80

90

100

110

120

130

140

150

160

170

India

Bahra

in

Om

an

UA

E

Germ

any

Ch

ina

Qata

r

Kuw

ait

US

A

Ne

therl

and

s

Irela

nd

Japa

n

Austr

alia UK

Sin

ga

po

re

Global DC Benchmarking : US$m / MW

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12.96

12.7008

12.64

12.46

12.35

12.3

12.25

11.81

11.43

10.59

9 10 11 12 13

New York

San Francisco

Singapore

Amsterdam

Frankfurt

London

Paris

Melbourne

Sydney

Dublin

US DC Benchmarking : o|a US$m/MW

27


Region

2

$12.5m/MW

Region

3

$10.4m/MW

Region

4

$11.1m/MW

Region

1

$10.9m/MW 0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Construction CSA Mechanical Installations Electrical InstallationsEquipment Security IT CablingFees, Prelims, Tax Hot Aisle Containment Design

Common Pitfalls

28

• Land

• Incoming Power / Utilities

• Site Conditions

• Building Type (Single / Double / Multi storey)

• Soft Costs

• DC Density per rack

• Currency / Fx


Common Pitfalls

29

• Tiering

• Total Cost of Ownership

• Seismic Constraints

• Demarcation line for Fit-Out Works

• Deployment of Capex for future phases


30

Conclusion


5

Conclusion

31

• Setting the baseline is key to successful benchmarking

• Dangerous tool if not correctly calibrated

• Benchmarking can be used in many ways throughout the project journey

• Overall aim = Greater Market Intelligence for Informed Decision Making


Thank you.


Contact details

Pat Unger, Snr. Project Manager

Mobile: +353 872238255

pat.unger@linesight,com

mailto:pat.unger@linesight,com

Data Centre Cost Benchmarking - An Insight & Common Pitfalls

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