Data Centres are not only flavour of the month but also a topic of debate at present. Should New Zealand openly embrace the development of more large scale “computer warehouses” to support our increasing use of AI technology or put strict restrictions on their planning, consenting and use?
As a “NZ Inc” advocate I’m generally supportive of development as I can the downstream economic benefits as we strive to improve our prosperity and compete internationally – ie jobs, diversified economy, positive foreign investment, resilient infrastructure etc. Data centres are just another part of the economic fabric that make up our economy.
The concept of large-scale computer capability is not new. I can recall one of our earliest clients, Hitachi Data Systems, which became Revera, pioneering some of this thinking 20-something years ago through the vision of Wayne Norrie and Roger Cockayne. Their early versions of these facilities, in response to the increasing demand for cloud computing, mastered the need for power and cooling in a rack-intensive environment albeit on a relatively small scale by comparison to the current facilities. Revera was eventually acquired by Spark. More recently we’ve played a small role in a data centre project (details under wraps) recognising that these are in many ways property and building projects, housing specialist equipment.
So, what do I make of all of recent debate on the pros and cons? I hadn’t really considered it too deeply but then stumbled upon an article from a like-minded US consultancy, Site Selection Group, providing their insights on what’s happening in the US.
This is a reasonably balanced assessment noting that location decisions (location economics) is a key influencer in the US as to where businesses elect to locate new developments, including data centres. The respective US states and towns and cities compete with each other and offer significant economic incentives to attract new investment given the scale of the US geography and economy, which we don’t see in New Zealand.
That said, the article shows that the US are grappling with all the same issues we are at present … water, electricity demand and pricing, wider environmental and community concerns (call it NIMBYism if you like) while at the same time recognising some of the economic benefits this type of investment provides. Take a read for yourself and make up your own mind.
The debate here will continue with government indicating some “rules and regulation” are probably needed.
Like Site Selection Group we are well versed in helping explore potential location options and commercial solutions, which can help data centre operators make informed decisions. The convergence of our Strategy, Property and Technology capabilities makes us a logical partner.
Republished courtesy Site Selection Group
Image courtesy of Otago Daily Times and Datagrid
