Data Centers Georgia: a Competitive Advantage for Data Centers

Data Centers Georgia: A competitive advantage for Data Centers

Critical Mass of Metro Atlanta Georgia Power’s award-winning Economic Our services include: Data Centers Development team has provided site • Access to our statewide site and building FORSYTH location services to industrial and corporate CHEROKEE real estate database and search tools ¨¦§575 decision-makers for 90 years. Since 2005, ¨¦§985 our team of data center specialists has • Electric infrastructure evaluation ¨¦§75 assisted with data center projects that • Consultation on electric service methods, represent combined power loads in excess power quality issues and rate analysis 400 ¨¦§85 of 400 MW. All services are provided at COBB • Preliminary engineering evaluation and GWINNETT no cost and are treated with the highest site layout services level of confidentiality throughout the ¨¦§285 site selection process and the life of the • Liaison with entities that administer DEKALB ¨¦§20 facility’s operation. For projects related incentives to managed services and co-location • Coordination of site tours DOUGLAS ¨¦§20 operations, Georgia Power also provides o FULTON ROCKDALE facility marketing assistance.

¨¦§85 CLAYTON ¨¦§75 Co-location and wholesale facilities Electricity in Georgia, a data center location advantage Critical mass of enterprise and Internet data center locations Electricity pricing in Georgia is below the Georgia Power Projected Generation by Type, 2018 Source: Georgia Power Community and Economic national average and highly competitive Development, 2017 3% with other major data center markets. 5% Natural Gas Additionally, Georgia Power’s generation 6% Coal Nuclear 14% 44% fuel mix offers customers a variety of Renewable options including increasing availability of Hydro Why is metro Atlanta home to more renewable energy purchase. 28% Oil than 60 major co-locations and enterprise data centers for leading Atlanta Electricity Prices Below National global companies? Atlanta Electricity Prices Below NationalAverag Averagee in Cents per kWh • Highly reliable power infrastructure and competitive electric rates AtlantaAtlanta Georgia Power 5.48 Dallas TXU Energy Retail 6.3 • Access to bandwidth and fiber Chicago Commonwealth Edison 6.38 • Low risk of business disruption San Antonio City of San Antonio 7.45 • Favorable business climate Las Vegas Nevada Power 8.4 • Availability of technical talent Washington D.C. Average of Multiple Providers 8.78 Los Angeles Los Angeles Department of Water & Power 14.16 • Accessibility San Jose PG&E 14.53 San Francisco Pacific Gas & Electric 14.53 Result: low total cost of New York Consolidated Edison 16.7 ownership Boston Massachusetts Electric 18.08

Source: EIA 2015 Data,0 Average Price of Electricity5 to Ultimate Customers10 by End-Use Sector and15 Provider 20

Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, April 2018 1 Partner with Georgia Power for your data center location.

About Georgia Power A Southeast Leader in Renewable Energy Initiatives

Georgia Power is the state’s largest Georgia Power consistently pursues opportunities to grow renewable resources in Georgia. utility with a net plant investment of The company will have contracted for more than 2,800 MWs of renewable capacity by more than $16.4 billion. The company the end of 2017, as well as continuing to support research and demonstration projects of serves 2.5 million customers in Georgia, renewable and emerging technologies. including 315,000 businesses and industries. By investing in solar Renewable Energy Credits (RECs), customers can help the advancement of electricity generated from environmentally friendly sources. Commercial Georgia Power is a unit of Southern and industrial customers who purchase at least 50,000 kWhs of RECs per month are Company, which owns generating eligible to participate in the Large Volume option with a reduced cost. Please see the capacity of nearly 43,000 megawatts following site for more details on Large Volume pricing: www.georgiapower.com/about- (MW) and provides electricity to energy/renewables. nearly 4.4 million customers in the Southeast. Reserve margins and planned capacity additions ensure that the supply will continue to meet Georgia Power Renewable Activities the growing needs of customers.

Important to Data Centers: Biomass: Over 500 MW online and under contract for qualified facilities

• Georgia Power-developed programs Solar: 2,700 MW of solar capacity by 2019. Georgia Power’s aggressive and services meet the unique needs solar initiatives are recognized by industry experts and are offering of data center operators. opportunities for increased solar generation and usage around the state. • Variety of pricing options including • More than 500 new projects to be constructed in Georgia in the Real Time pricing coming years • High-density load systems that • Recognition by Solar Electric Power Association, “Investor Owned ensure reliable and redundant Utility of the Year” 2014, “Top 10 Utilities for Installations” and “Top 10 electricity distribution Utilities for Adding the Most Solar Power to the System” both in 2015 • Unsurpassed customer service • Solar photovoltaic (PV) demonstration at the corporate headquarters including a dedicated account building and the University of Georgia managers for large use customers • Large-scale self-build projects with the millitary • Collaboration with Tesla on commercial-scale battery storage testing • Solar demonstration projects with the Atlanta Falcon’s new Choice of Electricity Provider in Georgia Mercedes-Benz stadium • Sell-back options for customers with solar rooftop systems Companies constructing new data center facilities with an initial • Simple Solar Program that allows purchase of 50% to 100% of connected electrical load of 900 monthly electricity usage for an additional fee of 1 cent per kWh. kilowatts (kW) or greater may have the opportunity to select the Wind: 250 MW of purchased wind energy through 20-year Power electricity provider that best suits Purchase Agreements, energy to power more than 50,000 homes. their needs. This is a one-time decision by the customer. Hydro: 1088 MWs of hydro generation, enough energy to power more than 257,000 homes

Nuclear: 2,200 new MWs of emission-free generation upon Plant Vogtle project completion

2 Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, April 2018 Metro Atlanta has a heavily-concentrated telecommunications infrastructure.

Atlanta is the major interconnection point on the Eastern seaboard between New York Telecom Companies and Miami and on to South America. Metro Atlanta ranks in the top five U.S. markets for Operating Metropolitan and total bandwidth and fiber access. Two of the country’s largest fiber routes – North/South Long-Haul Networks that Connect and East/West – cross in metro Atlanta. On January 2015, Google announced expansion to Metro Atlanta of its fiber network to four more cities, including Atlanta. Upon completion, Atlanta will be home to 3,000 miles of Google fiber optic cable. AmeriMex Communications Corp. The Southeast’s largest concentration of telecommunications companies sits at the heart AT&T of Downtown Atlanta. BT Global Services CenturyLink Inc. Cogent Communications Group Inc. Comcast Cox Business Atlanta: A Major IP Node on All Major Providers’ Networks EarthLink Carrier Atlanta is an important location for major IP network providers. Most major North FiberLight LLC American and global fiber network carriers have IP peering nodes in Atlanta. Georgia Public Web Inc. Global Cloud Xchange (formerly Reliance Globalcom) GTT Atlanta: A major IP node on all major provider’s network map Hibernia Atlantic NTT IP Network Example Host.net Hurricane Electric Internet Services Level 3 Communications LLC Masergy MegaPath Net2Atlanta.com LLC NTT America Inc. Onvoy (formerly Broadvox LLC) Orange SAGO Networks Southern Telecom Inc. Spectrum Business (Charter ^Atlanta Communications) Sprint T-CUBED (Norkfork Southern Corp. subisidiary) Telepacific Communications TeliaSonera Telx Transtelco Global IP Network POP Verizon Business Windstream Communications XO Communications Zayo Group LLC

Source: Company websites and research by Georgia Power Community & Economic Development, 2017

Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, April 2018 3 6-8124

6-8124

Georgia is low risk for natural disasters.

Enormous $2.5 billion data Risk Avoidance – Earthquakes campus planned for metro Atlanta Natural disaster risks, including risks of seismic-related weather impacts, are low in Georgia. There are no active fault lines in the area. Las Vegas-based Switch said Thursday it will develop a more than 1 million- square-foot campus it calls “The Keep” United States Seismic Hazard Map Peak Horizontal Acceleration (% gravity) with 2% Probability of Exceedance in 50 years that will be among the most advanced in the nation and the fourth in what it calls its “Prime” campuses in the U.S. WA

“The new facility will give Switch’s more ME MT ND

than 700 clients redundant “Tier IV OR MN VT NH Gold” data center facilities on the East ID SD WI NY MA MI RI CT Coast, in an area that is protected from WY

NJ natural disasters such as hurricanes. IA PA NE NV OH MD DE UT IL IN DC WV The complex will be 100 percent CA CO VA KS MO powered by renewable energy sources, KY

and the company is working with NC TN OK Georgia Power to attain that goal.” AZ NM AR SC

CyrusOne Expands to Atlanta PeakPeak G rGroundound Acce lAccelerationeration - % of Gra v–it y% In tGravityervals Intervals 0 - 2 9 - 11 18 - 20 41 - 50 81 - 120 “Leadership in technology, financial 3 - 5 12 - 14 21 - 30 51 - 60 121 - 160 services, manufacturing, education, 6 - 8 15 - 17 31 - 40 61 - 80 161 - 200 and connectivity make Atlanta an especially attractive market for our Source: U.S. Geological Survey National Seismic Hazard Mapping Project, US Geological Survey Earthquake Hazards Program cloud and enterprise.

Atlanta’s diverse economy moves fast and CyrusOne operates in the same manner. Our new A Sampling of Managed Services & Colocation Data Centers in Georgia Douglasville site is an ideal location for companies fueling Atlanta’s • Earthlink Business growth to leverage CyrusOne’s state- • Equinix Inc. of-the-art data center solution in • Internap Network Services Corp. this dynamic region.” • Peak 10 Inc.

Tesh Durvasula, Chief Commercial Officer, • QTS Cyrus One • SAGO Networks Source: CyrusOne web site press release, 12.19.2017 • SunGard Availability Services • T5 Data Centers LLC • Telx

Source: Business Wise Company Database, 2018

4 Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, April 2018 Georgia’s favorable business climate keeps data center operations competitive.

Georgia has a long history of being Property taxes are favorable, with effective business-friendly and its tax structure rates ranging from $5.5 to $24 per $1,000 FORTUNE 500 Companies helps make the state one of the most cost of fair market value across the region. Headquartered in Georgia competitive in the country. Larger data center projects may be able by Georgia Revenue Rank to negotiate property tax relief for land, In Georgia, corporate income tax is based building and equipment. Georgia Power 2017 Fortune Rank only on sales within the state, so the economic development professionals will 1 Home Depot 23 capital investment and payroll attributed facilitate this process for you. 2 United Parcel Service 46 to data center operations do not create an income tax burden. Another local incentive is accelerated 3 Coca-Cola 64 permitting. Given the concentration of 4 Delta Air Lines 71 Sales tax is a reasonable 6 to 9 percent in mission-critical facilities in the metro the Atlanta area, and there is a special 5 Aflac* 126 Atlanta area, local governments are sales-and-use tax exemption for 6 Southern Company 145 experienced in fast-track permitting for qualifying high technology companies data centers. 7 Genuine Parts 180 that spend $15 million within any calendar 8 First Data 242 year on qualified computer hardware and Lower Costs Attract Companies 9 SunTrust Banks 303 software. In addition, software applications The cost of living and cost of business are uniquely designed to meet the needs of a 10 Mohawk Industries* 311 favorable in metro Atlanta, generally falling given business enterprise are not subject to 11 Veritiv 331 well below the U.S. average, which is sales tax. unusual for such a large metropolitan area. 12 PulteGroup 353 13 HD Supply Holdings 364 14 AGCO 370 15 NCR 409

Atlanta construction costs lower 16 Asbury Automotive 410 Atlanta’s cost of doing Group business is lower than U.S. average 17 Intercontinental 437 Construction Cost Comparison, Select Cities Cost of Doing Business Index Exchange

San Antonio 0.84 *Headquarted outside metro Atlanta San Antonio 88 Source: FORTUNE magazine, June, 2017 AtlantaAtlanta 94 Dallas 0.86 Las Vegas 96 Phoenix 0.87 Dallas 97 AtlantaAtlanta 0.89 Chicago 103 Washington D.C. 0.94 Site Selection Phoenix 103 Las Vegas 1.04 “Top U.S. Business Climates” Los Angeles 113 Los Angeles 1.13 1. Georgia Washington D.C. 118 Boston 1.15 Boston 130 Chicago 1.2 2. North Carolina San Jose 135 San Jose 1.24 3. Texas San Francisco 139 San Francisco 1.29 4. Ohio New York 164 New York 1.35 5. Tennessee

0 50 100 150 200 0 0.5 1 1.5 Source: “2017 Top State Business Climate Rankings,” Site Selection magazine, November 2017 Index, U.S. = 100 Index, U.S. = 100 Source: Moody’s Economy.com State Cost of Doing Business Source: RS Means Square Foot Costs, Construction Costs Index, June 2017 (2015 data). Location Factors, 2017 (Commercial Rates). Note: Construction costs are based on a national average for materials and installation. To adjust these costs to a specific location, multiply the base cost by the factor for that city.

Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, April 2018 5 Atlanta is a technology hub with nearly 54,000 IT professionals.

Atlanta’s Top Technology Selected IT Occupations in Metro Atlanta

Employers Median ranked by # of full-time employees in Description 2017 Jobs Hourly Earnings metro Atlanta Computer and Information Systems Managers 10,359 $64.10

Computer Systems Analysts 13,665 $41.89 1 AT&T | AT&T Mobility 17,882 Information Security Analysts 1,838 $43.86 2 Cox Enterprises Inc. 7, 2 55 Computer Programmers 6,967 $40.63 Turner Broadcasting | Time 3 5,500 Warner Web Developers 2,340 $37.35

4 Verizon Wireless 3,974 Database Administrators 4,153 $42.45

5 McKesson Corp. 3,456 Network and Computer Systems Administrators 8,967 $42.50

6 Automatic Data Processing Inc. 3,402 Computer Network Architects 4,514 $56.63

7 NCR Corp. 2,915 Computer Hardware Engineers 1,172 $45.43 Siemens Industry | Energy | 8 2,600 Total 53,975 $47.32 Healthcare | Software Source: EMSI, 2017.4 9 General Electric Co. (GE Energy) 2,400 10 Equifax Inc. 2,000 11 Fiserv Inc. 1,937 12 Cisco Systems SPVTG 1,600 Talent Acquisition Local Expertise in Specialized Data 13 UPS Supply Chain Solutions 1,548 Center Technology 14 First Data Corp. 1,500 While IT talent is abundant in metro Atlanta, salaries tend to be moderate, A number of metro Atlanta universities 15 Lexisnexis Risk Solutions 1,410 compared with other metropolitan offer the gold standard certification for 16 Macy’s Systems and Technology 1,396 markets due, in part, to cost of living data centers – the Certification in Cyber 17 Hewlett-Packard Co. 1,300 below the national average. Defense Education, Cyber Defense General Motors Innovation 18 1,300 Research and Information Assurance Center Average Combined IT Wage as certified by the National Security 19 VMware AirWatch LLC 1,248 (Hourly Earnings) Agency and the Department of Homeland 20 Scientific Games Corp. 1,100 Security. Seven universities, Armstrong Source: Metro Atlanta Top Employers, Metro Atlanta Las Vegas $40.66 State University, Augusta University, Chamber (MAC), and Atlanta Business Chronicle Book of Lists, December 2016 San Antonio/Austin $42.79 Columbus State University, Georgia Phoenix $43.82 Institute of Technology, Kennesaw State Chicago $45.93 University, Middle Georgia State University Dallas $46.66 and the University of North Georgia are AtlantaAtlanta $47.31 National Centers of Academic Excellence Los Angeles $47.87 in either of these fields. The Georgia Boston $51.34 Tech Information Security Center (www. New York $53.22 gtisc.gatech.edu) is a leader in research Washington D.C. $53.29 involving secure future applications and San Francisco $58.38 deployment of quality-of-information San Jose $63.47 assurance. Kennesaw State University offers graduate certificates in Information $0.00 $20.00 $40.00 $60.00 $80.00 Source: EMSI, 2017 Median Hourly Wage Security & Assurance.

6 Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, April 2018 Georgia universities provide technical resources and talent for the future.

IT-Related Higher Education Number of Graduates in Computer “The Business Analytics Center at Science or Computer Engineering Georgia Tech brings together talented Across the state of Georgia, more than Disciplines over the Last 5 years students, world-class interdisciplinary 3,000 new graduates received IT-related faculty to educate and exchange best bachelors or masters degrees in 2016, and Las Vegas 2 , 7 61 practices for applying analytics to more than 330,000 students are enrolled San Jose 8,868 solve business problems.” in state colleges and universities that San Francisco 9,107 offer IT programs. San Antonio/Austin 9,374 Sri Narasimhan, Senior Associate Dean, Georgia Institute of Technology A technical certificate in Mission-Critical Dallas 16,7 04 Facilities Management is offered through AtlantaAtlanta 18,524 Source: www.scheller.gatech.edu/centers-initiatives/ business-analytics-center/ the technical college system. Boston 19,259 Los Angeles 3 0 , 458 Chicago 31,886 Georgia Tech: Leading the Way in Phoenix 39,606 “Atlanta is a high-demand colocation High-Performance Computing Washington D.C. 40 , 953 market and a growing hub for The Georgia Institute of Technology New York 42,999 healthcare, technology, and large recently announced Coda, the enterprises.” (5,000) 15,000 35,000 development of 750,000 square feet of Source: Completions 2012 - 2016 IPEDS, EMSI office space, research centers, a 80,000 Greg Friedman, Vice-President, zColo square-foot data center and a high- Source: “Zayo’s zColo Enters Atlanta Market With performance computing center. Half AtlantaNAP Acquisition,” DataCenterKnowledge.com, 07.02.2014 of the development is geared to major technology companies and startups. 29,572 Source: ‘Tech Square’s Second Phase to be called Coda,’ Georgia College and University Completions Atlanta-Journal Constitution, April 20, 2016 over the last 5 years in Computer Science Related Studies Kennesaw State to offer cybersecurity degree Workforce Pipeline In February of 2017, KSU announced Through Georgia’s one-of-a-kind HOPE 1,407 Board of Regent’s approval of the Georgia College and University Completions program, scholarships are available for over the last 5 years in Computer Engineering school’s new Bachelor of Science in both bachelors and technical certificate and Computer Engineering Technologies Cybersecurity. The new program programs, regardless of financial need. Source: EMSI, 2017 brings together elements from Information Technology, Information Security and Criminal Justice disciplines. Georgia Universities Conferring 100+ IT Graduates Annually Source: “Kennesaw State to Offer Cybersecurity Total Number of Degrees Degree,” Atlanta Journal Constitution, 02.13.17 Total Granted in IT-Related 4-Year Degree-Granting Universities Enrollment, Fields (Bachelor’s and Graduating 100 or More IT Professionals City Fall 2017 Higher 2016) Georgia Institute of Technology Atlanta 29,369 913

Kennesaw State University Marietta 35,846 590

Georgia State University Atlanta 51,562 508

University of Georgia Athens 37,606 125

Sources: EMSI, 2016 and University System of Georgia, 2017

Georgia Power Community & Economic Development – Your Partner In Business © Georgia Power, April 2018 7 Atlanta offers exceptional accessibility to domestic and international destinations.

World’s Most Atlanta’s Hartsfield-Jackson International Airport offers unsurpassed non-stop access to 158 domestic and 79 international destinations. The airport is also the most traveled in Efficient Airport the world. Atlanta is home to the world’s second largest air carrier, Delta Air Lines. (2017)

World’s Most Settle Traveled Airport (2016)

Mnnepols 4 hours Boston World’s Most New Yor 3 hours Chco Sn Frncsco Connected Airport Cncnnt Wshnton DC (2015) Denver 2 hours St Lous

Source: Hartsfield-Jackson Atlanta International Los Aneles 1 hour Airport, 2016; Air Transport Research Society, 2017; Airports Council International, 2016; OAG “Top 10 Most Connected Airports in the World,” 2015 ATLANTA Dlls

Houston New Orlens

Georgia Power has been helping companies locate in our state for 90 years. We offer a full array of products and services available at no cost. To receive confidential, proven assistance, please contact one of our experienced professionals:

Doug Coffey 404-506-3416 [email protected]

Walt Farrell 404-506-2243 [email protected]

MaryBeth Flournoy 404-506-1560 [email protected]

Brenda Robbins 404-506-6617 [email protected]

Charles Stallworth 404-506-2312 [email protected]

Georgia Power Community & Economic Development 75 Fifth Street NW, Atlanta, GA 30308 [email protected] www.SelectGeorgia.com

04.09.18