Most larger companies adopt a regional colocation strategy, colocating in data centers within reasonable geographic proximity to where they do business. For those with operations in the southwestern U.S., a Phoenix data center is a compelling option. Here, 7 reasons why.
In last week’s blog post I wrote about why many companies are moving to locate data centers in geographic proximity to the markets they do business in. I wrote about data sovereignty (Whose laws govern the data in the data center?) and latency (How long does it take data to travel between locations?) as two reasons. I also wrote about Singapore as a popular data center location for U.S.-based companies accessing emerging Asian markets.
That blog post was so well received we decided to launch a series on the rationale for data center location in different geographies. Since the spotlight is on Phoenix this week for Super Bowl XLIX and the infamous Waste Management Open, it seemed like the right place to start.
7 reasons why Phoenix is ideal for data center colocation
1. Natural disasters are highly unlikely.
When it comes to natural hazards, Phoenix is among the lowest-risk locations in the country. In fact, the only safer locations are in Northern California and the Pacific Northwest. (Source:Sperling’s Best Places)
2. Connectivity is significantly better.
Internet speed is significantly faster in Phoenix than almost every other Western city except, surprisingly, a few smaller cities in Washington. (Source: Ookla Net Index)
3. There’s a high concentration of network providers.
The more network providers are in an area, the better. You get more selection, plus competition among providers often means lower pricing, and changing network providers can be relatively easy. At the IO data center in Phoenix, customers can select from among 30+ providers, with no monthly recurring fee for cross-connects.
4. Energy costs are comparatively low.
The average industrial electricity rate in Arizona was 6.15 cents per kWh in March 2014. Among other Western states, Arizona’s rate is lower than California (10.78), Nevada (6.18), Oregon (6.22), New Mexico (6.65), and Colorado (7.09). (Source: U.S. Energy Information Association)
5. Phoenix is host to five Internet exchange points.
As of the last update of the data, Phoenix was host to five IXPs. One of those is within the IO Phoenix data center. Seattle had five listed IXPs as well; Houston had seven. Las Vegas was not reported to have any. (Source: Packet Clearing House)
6. The cost of doing business is low.
The cost of doing business in Phoenix is well below the city’s regional counterparts. Taking the national average cost as 100%, Phoenix ranks at 94.6%. Seattle is 101.9%, Los Angeles is 105.8%, San Francisco is 123%, and Houston is 111.6%. (Source: Urban Land Institute and PwC)
7. Greenfield data center space abounds.
There is plenty of space in the Phoenix metro area – which is 14,572 square miles, with a population density of just 223 people per square mile – for greenfield data center construction. San Francisco, in contrast, is 1,015 square miles with a population density of 1,705. Houston is 5,920 square miles with a population density of 706. (Source: U.S. Census Bureau)
There is no one right answer to the question “Where should I locate my data center?” For the reasons that I wrote about last week, most companies adopt a regional colocation strategy, colocating in data centers within reasonable geographic proximity to where they do business. So for a small business on the East coast, with only local or regional operations, the IO New Jersey data center may make more sense. But for companies with operations in the southwestern U.S., a Phoenix data center is a compelling option.
IO serves companies around the country, and around the world, with colocation data centers in the U.S. (Arizona, Ohio, and New Jersey), plus a Singapore data center in Asia, and a London data center in Europe coming online this spring. Tying it all together is DCIM software, branded IO.Conductor, which enables clients to monitor and manage their data center environments from any device, anywhere in the world. Learn more.