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Case Study

A new data center in less than 18 months

For large retailers, data centers are essential to generating revenue and maintaining operational excellence. One “glitch”—due to downtime or system failure—can cost millions of dollars. That’s why a large, specialty retailer recently realized that, by housing its primary data center on the main campus, its operations were at risk.  Facing the need to improve security, along with the need to upgrade its technology, the company went to market for a new data center site. With so much at stake, the process needed to happen quickly.

This company turned to Jones Lang LaSalle’s data center experts. Our data center team maintains an up-to-date record of every data-center-ready site in the United States. With a current list of available sites at our fingertips, Jones Lang LaSalle is able to begin the process months ahead of schedule.

There are many challenges in data center site selection. Potential sites must meet both IT and real estate requirements. Besides analyzing a site’s security, geography, power capacity and fiber-optic connectivity, a selection team must account for the cost of power in the area. In a 20-mega-watt data center, for example, a $.01 increase in the per-kilowatt-hour cost of power is estimated to increase annual data center operating costs by $1,000,000.

After carefully-weighing the company’s site criteria, the team was able to efficiently create a list of 10 sites and then create a short-list of three sites.  Due diligence evaluation of three final sites enabled the company to confidently select its current site in Austin.

Jones Lang LaSalle’s mission critical team and the company’s IT, real estate and incentives teams negotiated more than $50 million in savings—$5 million off the purchase price, and $47 million in guaranteed incentives. The new data center offered the security and opportunities for growth that the company needed. The entire process—site selection, due diligence, and retrofit—was completed in less than 18 months.

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