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Locationtakes of the Industry in New Jersey An Data® Centers A 2011 SUPPLEMENT TO NJBIZ an overview of the industry in new jersey see what a modern data center looks like, inside and out Finding the right location takes advance planning O to data center in 90 days For more information visit: io.com/modular letter from the publisher THE EVER-EMERGING DIGITAL WORLD and help you sort through what basic questions to ask as you work is creating all sorts of new opportunities and through your data-center needs. It also answers why New Jersey has challenges for businesses, large and small. From been specially positioned to handle these challenges. stock traders and health care providers adapt- The potential for growth in the data-center industry remains great ing to new regulations to retailers tapping the because the demands of individual companies keep evolving. And potential of the Internet, companies need to the industry has been adapting with that in mind. Systems are be- find ways to store and protect important busi- ing created that can help customers solve problems of today, while ness and customer data. planning for future data needs years from now. That means the data-center industry is flour- We expect that this overview will help you as you tackle the deci- ishing at a time of tough economic conditions sions you will need to make to tap into new and exciting opportu- worldwide. Service companies in the New Jersey nities that the new digital world offers. and the greater-New Jersey region are avail- able to help customers sort through their best options, and real estate companies have adapted to the special needs ofMountain data centers Development Corp. would like to thank to find just the right property for a customer. its friends at M&T Bank for financing With that in mind, NJBIZ pulled together this package of articles100 Delawanna Avenue Tom F. Curtin and guest columns that gives an overview of these trends in New Clifton, New Jersey Jersey. This supplement will help you understand the overall trends Mountain Development Corp. would like to thank its friends at M&T Bank for financing 100 Delawanna Avenue Clifton, New Jersey Mountain MountainDevelopment Development Corp. would Corp. like would to thank like to thank MountainMountain MountainDevelopment Development Development Corp.its Corp. friends would wouldCorp.its at like friendsM&T wouldlike to thankBank to atlike thank M&T for to financing thankBank for financing its friendsits friendsits at friends M&T at M&T Bank at Bank100 M&T for for financingDelawannaBank financing100 for financingDelawanna Avenue Avenue 100100 Delawanna Delawanna100 Delawanna AvenueClifton, Avenue Avenue Clifton,New Jersey New Jersey Clifton,Clifton, Clifton,New New Jersey NewJersey Jersey 2011 DATA CENTERS NJBIZ 3 ® MAILING ADDRESS 220 Davidson Avenue, Suite 302 table of Contents Somerset, NJ 08873 (732) 246-7677 Publisher Thomas F. Curtin ADVERTISING Director of sales Mark Cialdella account executive Susan Alexander DESIGN Design Manager Darren Phillips senior Designer Sara Siano Publication Designer Kevin T. Paccione EDITORIAL eDitor Tom Barstow coPY eDitor Gabriella Schrier CONTRIBUTORS Sean Brady Josh Rabina Richard Dolan PUBLISHED BY JOURNAL PUBLICATIONS INC. ceo David A. Schankweiler PresiDent Lawrence M. Kluger COVER DESIGN BY KEVIN T. PACCIONE “NYI has been an invaluable technology partner. Their flexibility and time-to-market made all the difference at a moment when we needed a customized, business-critical solution.” - Tim Norris, Director, Information Systems, Alliance Life Sciences COLOCATION. MANAGED HOSTING. BUSINESS CONTINUITY SOLUTIONS. 800.288.7387 / www.nyi.net / new york / los angeles / bridgewater, nj 4 NJBIZ DATA CENTERS 2011 BY SEAN BRADY DATA CENTER USE AND DESIGN are going There are five different types of third-party providers—wholesale, container- through major changes, and enterprise users have ized wholesale, co-location (colo), managed services and Cloud. New Jersey’s more options from third-party providers than 5 market is competitive because of supply, and co-location companies compete years ago. Then, the typical decision was leasing or with managed services and wholesalers. The market is fluid, with providers buying a building and “build your own.” The only constantly changing services and trying to offer more and compete for new major variations were height of the raised floor and tenants in the market. There are limited service standards and uniformity be- type of cooling system. tween the providers. This is why a user needs to constantly test the market. Today, more power, cooling, fiber and water are re- The only industry standard is SAS 70, but as merely an audit of controls and quired, and data centers are more complex because processes does not truly address services provided to end-users. more critical issues and components are required for The need to access information continues to drive changes in data centers, a Tier 2, 3 or 4 center, making it more challenging to pressuring companies to look at their own centers and make them more secure. find qualified properties. The most common level of center design today for Companies also need centers to operate more cost-effectively, process informa- enterprise or third-party providers is Tier 2+ or Tier 3+. (Grading, ranging tion faster, store more information, and be more reliable. Operating a center from one to four, focuses on design, resiliency and redundancy.) can be costly, but with the economic downturn, IT spending at most compa- Tier 1 and Tier 2 have non-redundant capacity components and a sin- nies was down significantly.A t the same time, with tremendous technological gle, non-redundant distribution path serving computer equipment. Tier change, a center or equipment 5-7 years old can be assumed to need upgrading. 3 has concurrently maintainable mechanical and electrical systems with These pressures are causing the data center design to evolve quickly, and one of redundant capacity and multiple independent distribution paths servicing the newer concepts getting traction today is the container operators who are computers. Tier 4 is a fault-tolerant center with multiple independent, guaranteeing very low power usage effectiveness, or PUE. physically isolated systems providing redundant capacity components and IT spending is up 15 percent for the first half of the year, fostering data center multiple distribution paths serving computer equipment. All equipment growth, but IT departments are being asked to produce more with less. Most IT direc- has independent equipment back-up and a second power line to a second tors are investigating lowering operating costs, creating pent-up demand for upgrades. substation, so the center will never go down. Third-party options offer an alternative to building your own data center. New Jersey markets offer every third-party data center option available — Third-party providers also offer short-term solutions that never existed. New legacy data centers and properties appropriate for conversion. One example is center designs, equipment advancements and more powerful servers continue Brookfield Real Estate’s Convergence, a 650,000-square-foot campus at 115 to fuel center growth,, with financial services and healthcare leading the way. South Jefferson Road in Whippany. With heavy power, uninterruptible power Within Metro New York, the biggest growth is in New Jersey. Midtown/ supply, multiple generators, connectivity and full-site security, it is one of the Downtown Manhattan have 5.7 million square feet; Long Island approximately top mission-critical facilities available today in New Jersey. 1.3 million square feet; Westchester and Fairfield counties 754,000 square feet; and Rockland County/Northern New Jersey 15.2 million square feet. Many small to mid-size companies need or want their data center in their headquarters or nearby. Companies in Manhattan have limited alternatives — Sabey Data Centers is redeveloping 375 Pearl Street into the only special-pur- pose data center in Manhattan. In Westchester/Fairfield andL ong Island, there are few co-location or wholesale providers because of the limited access to the building, power and fiber. In New Jersey there are several providers, making it challenging for enterprise users considering the options. Limited supply else- where has helped the New Jersey market expand. The New Jersey colo/wholesale market is mature, with two large concentra- tions of data centers. One combines Bergen County, Meadowlands, Hudson waterfront, and Newark with 2.7 million square feet of space, encompassing 21 properties controlled by 13 companies. The vacancy factor is13.6% not includ- ing the future build of 500,000 square feet by Equinix in Secaucus. This region is predominantly a colo/managed services and newly expand- A row of servers is seen here at the Brookfield Real Estate’s Convergence at 115 South Jefferson Road in ing Cloud market, healthy with a price for power from $160-355 per kW per Whippany. Data centers are kept in pristine condition as part of the mission to protect critical data. Continued on page 10 6 NJBIZ DATA CENTERS 2011 When it comes to data centers, why New Jersey? by Tom Barstow FIRST CAME THE DOT.COM BOOM in the 1990s. The optimal distance of a data center from the point of a financial Then came the Sept. 11, 2001 terrorist attacks, followed by new fed- trade is about 25 to 30 miles, Hipschman and other experts said. The eral regulations of financial companies. NYSE Euornext has its data center in Mahwah, for example, and many And now, as all businesses adjust to the new Internet technologies of the banks and financial services companies have shifted centers from and new customers and performance demands brought on by the Web, across Manhattan and into the Garden State. those industries are driving new demand for data centers in New Jersey, Terence Deneny, vice president of Structure Tone Mission Critical, agreed a trend that will continue long into the future, observers noted.
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