When it comes to data center planning, there are many angles and approaches organizations can take. There’s no doubt data center investments can be hefty commitments. But with data continuing to grow at an increasingly rapid rate, more and more businesses are having to take the plunge.
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In fact, according to the Data Center Journal, data center investments in the U.S. reached record levels in 2017, soaring to an impressive more than $20 billion.
It might be time to make the investment, but a new report from Stream Data Center poses this question: Is it first a technology investment or a real estate investment — or perhaps both?
To tackle this question, Stream Data Centers’ Paul Moser, Co-Managing partner, and Michael Lahoud, COO and Partner, make a case for each. The two experts found the two are in fact hard to separate.
Lahoud starts off by explaining that “it has to be a technology investment since a data center is technology.” In other words, it’s underlying use is technology, tech lives in the facility itself, and tech professionals run the whole operation.
Lahoud points out that with data centers, “What’s inside counts.”
That said, Moser points out, “Without real estate, that tech has no place to go.” Naturally, the investment in real estate likely precedes the investment in technology.
“I think we’re about to meet in the middle. A data center is two investments in one.” — Paul Moser, Stream Data Centers
And keep in mind, real estate isn’t just property. Infrastructure and environment are key to data center security and compliance.
Although a real estate investment might precede capital spent on tech, Lahoud contends “technology drives the decision” to invest, especially if a company is reevaluating what they need.
But, success might just depend on integrating all aspects of the investment decision, says Moser, and failing to look at both sides can be a mistake.
Think about it this way. If real estate finance managers toured sites without taking into account the technical side of the house, they could potentially run the risk of securing a site without the right infrastructure.
So, what’s the best approach? Should the focus be on technology or real estate investment? The Stream Data Centers report explores how combining the interests of real estate and technology leads to the ideal data center strategy for your company.
Download the new series of executive briefs, “Data Center Planning — Who’s on First — Real Estate or Technology,” courtesy of Stream Data Centers, to explore tech and real estate investment in the data center planning process.