Mark Mac Auley Data Center Marketplace Event

1. Data Center Marketplace
March 22, 2012

2. Game plan
• Interesting facts about the Capitol Region and
how we stack up
• Site Selection Methodology – what ours is and
how we use it to mitigate risk
• Site selection for the cloud

3. Capitol Area Statistics
• 31 facilities in Virginia
– 5 in Vienna
– 9 in Ashburn
– 1 in Chantilly
– 1 in Manassas
– 4 in sterling
– 1 in Springfield
– 1 in Harrisonburg
– 5 in Richmond
– 4 in Reston

4. Statistics continued
• 16 Data centers in Maryland
– 1 in Annapolis
– 6 in Baltimore
– 2 in Beltsville
– 2 in Frederick
– 2 in Laurel
– 2 in Silver Spring
– 1 announced in Glen Burnie

5. Statistics Continued
• Washington D.C.
– 6 in the District
In total 52+ data centers in the Capitol region

6. Fed Closures
10 Fed Data center closures last year in the region

7. U.S. Data Center Concentration
1. California has 146
2. Texas has 97
3. New York has 84
4. Florida has 49
5. Illinois has 48
These are the top 5 states with listed/known data
centers. Neither Virginia nor Maryland is in the top
5, with Virginia home to twice the number of
facilities as Maryland.

8. Why Silver Spring Maryland?
• It’s NOT in Northern Virginia
• It’s close to DC, but outside the beltway
• Not in flight paths of 3 major airports
• Financial grade facility, on top of a hill
• The mechanical and electrical systems are <3
years old
• 100,000+ hours of continuous uptime (11 years)
• In short – great site + new equipment = where we
would want to put our IT

9. We Drink Our
It is our site selection methodology in actual
practice. We looked at over 20 opportunities last
year for footprint expansion and didn’t select
one of them.
Here is a peek inside a consistent site selection
methodology…

10. Site selection
One of the first (and still the
most comprehensive) books
on the subject
Focuses on the site location
and associated risks from
FEMA data to floor loads
I have given this book as a
gift many times to clients and
peers over the years

11. The Criteria
Key:
1= Fully Comply
2= Partially Comply
3= Does Not Comply
N/A= Not Applicable
Criteria Comply Description
Natural Environment
Seismic Activity 1 Site should not be in seismic, volcanic, or landslide area
Subsurface Stability 1 Avoid quick, unstable, or expansive soil
Ground Water 1 Soil should not be at risk for saturation
Wind 1 Site should not be in area with typhoon, tornado, high wind, sand storm risk
Flood Plain 1 Site should be above 100 year flood plain levels
Topographical 1 Risk of wild fire, landslide, mudslide, debris flow
Air Quality 1 Avoid risk for air intake and contamination
Altitude 1 Site is not above 3050m
Heat 1 Facility should not be centered within an urban heat sink
Noise 1 Site is not adjacent to residential or entertainment area

12. Utilities - Power
Utility Environment
Power
Underground cabling 1 Overhead cabling is not desired, or if unavoidable, at least one of a diverse route should be in buried
to site (Power. conduit
Telecom)
Proximity to 1 Site should be within 3km to at least one utility substation
substation
Capacity available 1 Power utility should have at least 10MVA available to site
Power reliability 1 Power failure disruption outage not to exceed 8 hours per year
Diverse power feeds 1 Preference to duel feeds from two separate substations
Site substations 1 Utility should provide at least 12,000v to site
Site transformers 1 Utility transformer on site at 380v, meter on facility side of transformer
Backup Generator 1 Site will support up to 7x 2~2.5MW generators (depending on project scope)

13. Utilities - Telecom
Telecom
Buried fiber optic cable 1 Carriers should provide service to site via buried conduit
Diverse cable routes 1 Carriers should place facility on ring, or have two diverse route feeds
Proximity to carriers 1 Site should be within 3km of carrier fiber routes
Fiber capacity to site 1 Carriers should POP the site with minimum 12 count fiber
Dark Fiber 1 Carriers should provide dark fiber for provisioning to site
Carrier Lit Services 1 Carrier should provide managed services (Ethernet, SDH, Internet, VPN)

14. Utilities – Water, Fuel, &
Transportation
Water
Water utility 1 Potable water for domestic site services (drinking)
Industrial water 1 Industrial water for landscaping and mechanical services (cooling)
Private well 1 Potential for on-site water and water conditioning
Sewage 1 Sanitary waste water removal
Fuel
Diesel Fuel 1 Availability of diesel fuel, and priority contracting for diesel fuel
Natural Gas 1 Proximity and access to natural gas feed
Renewable energy 2 Site potential for wind/solar supplemental power
Transportation
Public access road 1 Access to facility from main road (can support large vehicles)
Traffic type 1 Facility should not be near hazardous vehicle routes
Proximity to main 1 At least 3.2 km to main highway or arterial roadway
roads
Proximity to railways 1 At least 1.6km to railways (except for dedicated feeder spur)
Proximity to airport 1 At least 8km from airport, not under runway approach or takeoff
Proximity to seaport 3 At least 1.6km from cargo loading/handling facility

15. Regulations
Regulations and codes
Air quality 1 Restrictions on diesel generator or cooling systems
Noise levels 1 Restrictions on site decibel levels, including diesel generators
Zoning 1 Restrictions on use of land, types of business, or litigation within community for zoning change
Communication 1 Site construction does not interfere with line of site or communications
towers
Diesel and water tanks 1 Restrictions on fuel and water storage
Parking 1 Number of spots required, disabled spots required
Traffic N/A Restrictions on truck or large vehicle access
Setbacks 1 Distance required from building to property line or roads – see aerial in brochure
Contamination 1 Land should be free of soil contamination

16. Environment/Surroundings
Location Environment
Hazardous buildings 1 Site should not be near properties with chemicals or explosives on site
Traffic 1 Site should not share access road with high volume traffic
Impact on operations 1 Avoid locations near following properties that could impact operations
1 Embassy/consulate (>5km)
1 Military base (>15km)
1 Police station or barracks (>5km)
1 Fire station (>1.6km)
1 Hospital (>1.6km, <8km)
1 Chemical plant (> 8km)
1 Politically sensitive sites (>5km)
1 Religious sites
1 Research labs (>1.6km)
1 Media (broadcast/print) locations (>1.6km)
1 Vacant lots that could be built to support any of the above high risk sites
1 Unknown tenants in adjacent lots
1 Power plants (>20km)
1 Explosives and hazardous chemicals (>
1 Flood Plain (>1.6km from 100 year floodplain)

17. Level of security/interference
Security
Perimeter fence 1 Allow installation of minimum 3M fence – already in place
High crime areas N/A Avoid high crime areas
On site security 1 Supports 24x7 on-site security staff w/defensive weapons
Risk of terrorist 1 Low terrorist threat zone
activity
Interference
Vibration 1 Should not present risk of rail, air traffic, roadway vibration
Electromagnetic 1 Should not be at risk of electromagnetic interference

18. Physical/Site specific
Grounds
Are there secure (underground) electric and communications 1 There is one way into the building
utility service entries?
Does the building layout present the ability to limit or restrict 1 Yes. Fence, setback, parking, and access control
physical access to the data center?
Is there nearby public transportation available? 3 Public transportation is limited but available
Is there adequate parking available? 1 Yes, in one secure lot and one unsecure (setback) lot
Is the parking area equipped with barriers or landscaping to 1 Fences and gates into parking area, as well as perimeter of site
segregate vehicles from the external walls?
Does parking restrict public or commercial traffic? 1 Yes
Is the labor market adequate to support requirements? 1 yes
Does the external profile of the building conceal the existence of a 1 Yes
data center facility?
Are the external walls of the facility constructed to prevent 2 They are thick concrete
unauthorized access?
Do the grounds support additional power and cooling 1 Yes
infrastructure?

19. Building attributes
Building
Do ground floor windows exist in the facility? 1 At the secure entrance
Is there a loading dock with access at truck bed height? 1 yes
Are there ramps for the loading dock? 1 yes
Is loading dock and staging area secure and segregated from 1 Yes, physically diverse
sensitive areas?
Are there local ordinance/codes restricting truck/delivery traffic? 1 Limitations would be physical, not policy based
Is the parking area equipment with barriers or landscaping to 1 Yes. Fences, curbs, and landscaping
segregate vehicles from the external walls?
Can elevators, ramps, doors, and other passageways 1 Yes. Two elevators. One to 5000 lbs, the other to 8,000
accommodate large equipment?
Slab height (floor to ceiling) 14 feet slab to slab
Can support raised floor or drop ceiling 1 Yes in BG-1 raised floor in place.
BG-2, has its own separate power service to support containers
Column spacing in M&E rooms, computer rooms
Plate size in M&E and Target computer areas
“POD” partitions or capability for PODs 1 Can take containers or other modular deployments (Merlin, Dell,
SCIF, etc.)
Riser space for multi-level building (multiple risers, usage, space) 2 Two floor building
Floor loading capacity >100lbs/sqft 1 278 lbs
Building supports TIA-942 layout requirements 1 Yes
Building should be rated for highest recommended seismic 1
standard in each location (i.e., IBC/UBC recommendations)

20. Mechanical and Electrical
Mechanical/Electrical
Are utility substation/transformers located in a secure vault? Yes
What is the total capacity of utility transformers feeding site? 2 x 8.6 UPS with 22MW of generator
Can the utility add additional substation feeds or capacity to site? Yes, power can be doubled
Are utility substations on site shared with other facilities? no
Lease tenants billed at utility meter, not from landlord If they pay utility for metering infrastructure, BCM is used as well
Utility power uses “green” (non-fossil fuel) energy Green available at a premium
Is the stand-by generator physically isolated and secured? Yes, indoors
What is the existing generator run time at full load (hours)? 72 hours
Is there secure, building code compliant fuel storage for generators? Yes, underground tanks 100k gallons
What is the total fuel capacity on site? Expandable? 4x25,000 gallons, expandable above ground
Current arrangement in place with fuel provider for 12~24 hour refill? yes
Is special floor loading support required for UPS, generators, cooling or other heavy No, this is at ground level, separate from data center halls
equipment?
Yes
Is the UPS (batteries) located in a separate, secured and ventilated area?
Yes. There are two UPS (#1 & #2) that are being replaced Q2 2011.
Is age of UPS/DC Plant batteries less than 2 years?
Current load on UPS/DC Plant system <60%? Yes, currently ~25%
Current hold time on UPS/DC Plant system >10 minutes? Yes, 16 minutes
Existing facility PUE < 1.8? (includes existing tenants) Yes
Planned PUE for new build out or expansion will support <1.5? Yes – 1.2-1.4 planned
Is external power equipment (chillers, pumps, towers) able to be secured and made Yes, these are secure
accessible only by authorized personnel?
Is there evidence of frequent or extended power outages to the facility? If evidence of No. There has been5 minutes of downtime since building was ‘lit’ in 1980
outages exists describe frequency and durations.
Does power to the facility appear clean? Visual evidence of light flicker, or the existence of Power is very clean to the site
motors and other industrial equipment on the site.
Yes, on site only
Can the electrical utility’s performance data be reviewed (i.e. interruptions)?
Does the site have power metering and monitoring solutions Including branch circuit Yes
monitoring)?
Does the facility have isolated equipment grounding in place? Yes

21. Mechanical/Electrical
Is the facility protected from transient ground faults and lighting? Yes
Is external cooling equipment (chillers, pumps, towers) able to be Yes
secured and made accessible only by authorized personnel?
Does the site have temperature and humidity metering and Yes
monitoring solutions?
Does the facility or existing tenant use an integrated CMMS? Yes
Has mechanical equipment (fans, condensers) been in place less yes
than 5 years?
As part of preventive maintenance schedule does facility complete Yes, some annual, some quarterly, some monthly testing occurs on
annual electrical and mechanical load bank testing? various equipment
Can facility manager show complete record of preventive and Yes, on site
emergency maintenance on all mechanical and electrical
equipment?
Does facility have an operational BMS/BSS with active monitoring, Yes, on site
status, alarms generation, and performance/event history?
If tenant space separate from main building, does building Yes
manager allow export of relevant BMS data to tenant monitoring
or management systems?
Does building manager or tenant analyze BMS data and feedback Yes, constantly
to improve facility performance?
As part of annual preventive maintenance schedule does facility Yes
perform InfraRed testing on all electrical breakers and buss bar
joints?
Has a CFD (Computational Fluid Dynamics) study been done for Yes.
M&E and computer rooms?
Will existing HVAC system support heat loads >150 watts/sqft? Yes

22. CR Specific
Computer Rooms (Existing and Planned)
No external windows in computer room(s)? No windows in the CR
If there are external windows, are they shatter-proof and secure? Yes
Are equipment staging areas secure, conditioned and physically Yes
separated from computer room(s)?
Raised floor does not require ramps for access (e.g., sunken floor No
design).
Are water lines under computer room floor for cooling equipment Yes, no toilets/sinks
only?
Is the flooring surface able to withstand freight handling Yes 250 lbs/ft
equipment without damage?
Does adequate hot water supply exist for humidifiers servicing the Yes
data center (if required)?
Do all fire doors comply with local fire codes (or other relevant Yes, all are secure
regional, national, or regulatory standards)?
Are the external fire doors failsafe? yes
Can the computer room(s) be made air-tight if a gaseous fire Yes, Halon too
suppression agent is to be used (FM-200)?
Computer room(s): Positive drainage of area under raised floor? Yes
Computer room(s): Positive check valve to prevent sewer gases or Yes
other drain backup?
Are equipment staging areas secure, conditioned and physically Yes
separated from computer room(s)?
Do cabinets use blanking panels to prevent hot air recirculation? Hot – cold aisle containment is utilized
Is cabling within racks structured? yes
Does facility use hot or cold aisle containment? yes
Are copper (telecom), fiber optic, and electrical cabling separated yes
into fiber trough, ladder rack, and conduit/gutter IAW BICSI/NEC
Standard?
Does the facility use conduit to protect security and security yes
monitoring circuits?
Does the facility utilize conduit to protect data communications yes
between floors and rooms?
Is there room for expansion? yes

23. Internal security
Building Security
Has the landlord or the enterprise made use of security guards? Yes. 24x7x365
Are security guards stationed at all public entrances to the Yes
facility?
Have security personnel been briefed on how to react to civil Yes
disturbances?
Are security personnel trained to handle bomb threats? Yes
Does a liaison program exist with local law enforcement? Yes
Are background checks performed on all new employees or Yes
contractors?
Are backgrounds rechecked periodically? Yes
Are policies established for dismissing employees or contractors Yes
who might be a threat to the data center?
Is the security perimeter clearly marked and defined (inside the Yes
facility and outside)?
Are all external perimeter fire doors alarmed? Yes
Are all external perimeter fire doors monitored? Yes
Does the facility have intruder detection systems? Yes
Do the intruder detection systems comply with applicable local, Yes
national or international standards?
Does the facility use physical entry controls to project secured Yes
spaces?
Do the physical entry controls restrict access to only authorized Yes
personnel?
Is the physical entry control system recording entry and exit for Yes
secure areas (date, time)?
Does security CCTV monitor all entry/exit points, electrical Yes, inside and outside
distribution, mechanical, perimeter, and loading areas?
Are CCTV recordings kept for >60 days? Yes, on & offsite
Do all parties accessing the facility (employees, contractors, Yes
visitors, etc.) wear visible identification?
Will all personnel alert security if they encounter anyone not Yes
wearing visible identification?
Will third-party support personnel or contractors be allowed No
unescorted access within the facility?

24. What does it all add up to?
• We do this level of homework on behalf of our
clients and tenants because it’s a lot of work
• The framework assesses and scores risk in a
consistent manner. Since tenants and
customers ultimately buy risk, we need to be
able to assess risk as well or better than those
we serve
• We, as an industry, need to do it in a
consistent manner

25. What it doesn’t account for
• Cost of a site whether it’s dirt, shell or operating
facility.
• Competency of the operators – evaluating
skillsets, experience
In general, this methodology does not substitute
any part of a due diligence process, nor is it
intended to. What it gives us is a yardstick with
consistent units of measurement for us and
ultimately our tenants

26. Example
Tank farms
Midwest USA
Compressed gas
distribution

27. So What?
• Tenants & customers buy risk, and filter risk
through a series of trade offs
Whether you are a cloud company, a Fortune 50
bank, or a hospital you need to assess risk more
stringently as the value of the assets increases

28. What does cloud do to risk?
• Increase?
• Decrease?
• Shift to vendor?
• Nothing?

29. Cloud Pitch & Does it Deliver?
• Apps & data always available
• OS independent
• Never down
• Backups are a thing of the past
• Truly Elastic / scales up & down easily
• The holy grail of computing
• Shift from open bar IT to cash bar IT

30. To Cloud or Not to Cloud?
The most common goals-
• Reduce Costs
• Improve availability
• Be proactive with IT
Are these realistic?

31. Ask questions

32. To cloud or not to cloud?
• Understand what the specific business goal of
implementing a cloud model is – cut costs by
20%, improve application availability by
25%, increase server utilization to a steady state
of 75%+, keep out IT staff from being reactive
95% of the time
Each of these goals has a risk associated with it that
must be evaluated much like a site. At the end of
the day it’s a data center site

33. What does cloud do to risk?
• Increase?
• Decrease?
• Shift to vendor?
• Nothing?
All of the above.*
*If it is designed to do just that

34. How do you de-risk cloud?
• You start with the same process you follow
when looking at a data center. Ask ‘What are
we trying to accomplish moving to the cloud?’
• Take a look at the underlying architecture of
what you signing up for – cloud doesn’t mean
bulletproof
• Uncover internal ‘social unrest’ early
• Quantify exactly how a move to a cloud
supports the specific stated business goals

35. Cloud Eval Questions
• Where is the hardware located? How much of it
is dedicated to me?
• How is it connected? How many carriers? Size of
pipe?
• Can you show me the orchestration layer and
how it operates?
• What is your bursting capability? How do you
track and correct bottlenecks?
You will want to make sure that the answers given
are supported in the contracts/SLA’s you sign up for

36. It Might not be a Cloud Architecture
• If your SLA is for 100% uptime, but it has
maintenance windows, it might not be a cloud
architecture
• If your data copy/backup SLA indicates that it
is in a single location, it may not be a cloud
architecture
• If software licensing is involved and looks like
they changed the font of a traditional EULA, it
may not be a cloud architecture

37. How we View Cloud
• It is driving a fair amount of leasing right now
• There are as many solutions as there are
vendors
• Cloud Access Peering – CAP – will evolve much
like peering has
• Cloud is only as good as its design – outages
can still occur
• We have one of the best facilities on the East
Coast in which to build a major CAP site

38. In Summary
• The data center business continues to grow
and what is driving the growth is shifting
• Using a consistent methodology to evaluate
sites reduces risk, and adds value to client and
tenant relationships
• Cloud site selection = data center site
selection plus more complex architectural
considerations to insure risk mitigation