Global Data Center Location Insights

March 2013

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All the information contained in this report is obtained through proprietary technology aggregation algorithms, human experts, network of domain experts, discussions with industry leaders, public and confidential information sources believed to be reliable. Talent Neuron makes no representations or warranties regarding the errors, omissions or completeness of any information contained herein and shall have no liability for the same. The report is provided solely for informational and marketing purposes and opinions must not be construed as advice, recommendations or endorsements. The reader of the report is advised to conduct an independent evaluation and form conclusions with respect to the information provided.

Talent Neuron

Talent Neuron can help in selecting the right location for datacenter by providing data, analytics and insights on Locations, Talent, Cost, Peer Group Footprint & Trends

Location Analysis

Understand the capability of each potential location and make data driven decisions on setup and expansion

Peer and Talent Insights

Understand the capability of each potential location and make data driven decisions on setup and expansion

Ecosystem Analysis

Understand the capability of each potential location and make data driven decisions on setup and expansion
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Source: Talent Neuron Website

CAPABILITIES

Capabilities

Talent Neuron has assisted over 100 companies in their global location analysis and site selection process
Ecosystem Insights Skill Wizard Forecasts Market Insights Industry/Domain Market Tracker Wage Inflation Trends Company Tracker

Proprietary Data Sources

ZINNOV KEY FOCUS IS ON THE TECHNOLOGY INDUSTRY. OVER 80% CLIENTS ARE IN THE PRODUCT ENGINEERING DOMAIN

Web Crawling

Surveys
400+ GLOBAL CITIES COVERED Reports

Expert Insights

Consulting

Network

6 DOMAINS 35 FUNCTIONs

Analytics

150+ SKILL SETS

Zinnov

PROPOSED APPROACH Data Gathering and Analysis through BIG Data Talent Neuron will use data driven Big data principles (for large data analysis) which will provide comprehensive insights and transparency on the trends, current realities and opportunities in any locations
Connectors (API / Screen Scraping)

100+ Job sites

Patent Databases Publication/ Journal Databases Technology Contributor lists

3,000+ Company Career Sites

Universities

Hadoop Engine (Big Data Approach)

Over 12,000 Unique Data elements for each city

Social Media/ Public Profiles

Community Sites

Skill Availability

Location Insights

Compensation and Cost Trends

Peer Company Footprint

Source: Talent Neuron Website

Zinnov

Overview of Global Data Centers

Forty five percent of all global data centers are located in the US
25% 3% <1% ~1.5%

45%

Canada

Western Europe

Turkey
~2.5%

Japan
~1%

US
<1%

India

<1%

~1%

Hong Kong
~3%

Brazil
<1%
<1%

Singapore Malaysia

Chile

Australia Argentina
Western Europe includes UK, Ireland, Switzerland, Germany, France, The Netherlands, Italy and Poland

Note: Map is not to scale Source: Talent Neuron, Interviews with Industry Stakeholders

Companies typically consider the following Categories to evaluate the locations for data center setup

Physical Infrastructure

Others

Cost

Framework for Evaluation

Business Continuity

Talent

Network Infrastructure

Source: Talent Neuron Website

A comprehensive analysis of the relevant parameters under each category is necessary to ensure the selection of the suitable location
Physical Infrastructure Talent Cost Network Infrastructure Business Continuity & Others

Operating Cost Setup Cost Equipment Cost Accessibility Real Estate Location Regulatory Compliance Recycling Facility Cooling Systems Sources Renewable Sources of Power Power Stability Peer Companies Presence Technicians Network Policies Implementation Tier 3 level Network support SOC Transportation Cost Connectivity Cost Fiber Cost Recycling Cost (if any) Back-up Costs Amortization Policies Real Estate Costs Cooling Costs Power Costs Network Support Talent Import Export Costs Fiber Third Party Vendors Ease of Replacement and Repairs

Natural Disasters

War History Government policies Environmental

Network Vendors
Domain Knowledge

Data Security

Terrorism

Political

NOC

Existing Data center infrastructure

Connectivity Infrastructure

Force Majeure

Physical

Source: Talent Neuron

Growing Data Center Market

Data center facilities are growing rapidly in emerging locations such as Turkey and Brazil

Data Center Facility Growth in Key Global Markets

60% 45% 40% 40% 55%

30%

30%

20% 10% 10% 5% 0%

15%

15%

US

Canada

Brazil

Argentina

UK

Germany Turkey

Russia

China

India

Tax incentives, availability of energy and property at subsidized rates for new Data Centers have been driving the growth of Data Center facilities in emerging geographies

Source: Talent Neuron, Interviews with Industry Stakeholders

Emerging Data Center Locations in Europe

Data centers in EMEA locations have helped Internet companies to efficiently serve their customers in the high volume European market
With its proximity to London, Slough is central to businesses making it a strategic geographic location for data center operations
England Slough

The city has dual power supply and high levels of security making it an ideal location for data centers The city is on the hub of the major fiber networks Lule benefits from the countrys high redundant power grid with renewable hydropower and highly developed infrastructure
Lule

Sweden

Sweden has one of the lowest electricity prices in Europe with Lule having the lowest electricity prices in Sweden The region has a large number of data center skilled talent with expertise in fields such as distance-spanning technology, long-term digital preservation and lower energy consumption of web technologies Availability of low cost abundant renewable geothermal and hydroelectric energy makes the country suitable for data center operations. Energy costs in the country is 1/3rd of energy costs in London.

Iceland

Reykjavik

Availability of IT infrastructure talent has been growing in the region and removal of VAT on IT infrastructure has made Iceland more attractive for data center operations Data centers in Iceland also benefit from fresh air cooling cost savings

Note: Map is not to scale Source: Talent Neuron, Interviews with Industry Stakeholders

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Other Emerging Data Center Locations

Emerging locations such as Santiago has seen data center investments by companies like Google due to favorable government policies and lower operating costs
Santiago has reliable infrastructure and skilled IT infrastructure talent required for the growth of the data center market
Santiago

Availability of new climate control technology and low cost energy has helped to increase data center investments in the country Favorable government policies and incentives have helped enterprises to emphasize on innovation, which in turn has driven the growth of Internet and data center market in the country

Chile

Malaysia

Mail info@talentneuron.com to access complete report

Singapore

Tax incentives by the local government has decreased the cost of setting up new data centers in Singapore The city has reliable power supply and has skilled data center talent The Infocomm Development Authority of Singapore (IDA) offers incentives to companies covering between 30% and 50% of capital expenses for retrofitting their data centers with new, energy-efficient equipment Data centers in Canada benefit from limited government interference in corporate data which has been a cause of concern for data center operations in US Toronto has a large data center talent pool and has low risk from natural disasters making it favorable for data center investments

Canada

Toronto

Proximity to US has also attracted many data center investments in the region Availability of networking and power infrastructure is high in Toronto
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Note: Map is not to scale Source: Talent Neuron, Interviews with Industry Stakeholders

Large Data Centers Outside US

Google, Microsoft, Samsung and Yahoo have large data centers outside of US
S No. 1 2 3 4 Company Samsung Yahoo Google Location London, UK Singapore Hong Kong

Google
Samsung Google Samsung Microsoft Facebook Google

Santiago, Chile
Gumi, Korea Changhua, Taiwan Beijing, China Dublin, Ireland Lule, Sweden Groningen, Netherlands

5
6 7 8 9 10 11

Google
Samsung

Eemshaven, Netherlands
Gwacheon, Korea
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Source: Talent Neuron, Interviews with Industry Stakeholders, Company Websites

Data Center Talent Pool Availability

APAC locations like Tokyo and Hong Kong have a large IT Infrastructure talent pool which makes them favorable for data center operations
IT Infrastructure Talent across Key Global Data Center Locations
16,000 Americas 14,000 12,000 10,000 8,000 13,350 EMEA APAC

13,750
12,800 Mail info@talentneuron.com to access complete report

6,550
6,000 4,000 2,000 0 5,300 4,100

3,650
1,250 150

3,800

2,400
1,600

Source: Talent Neuron, Interviews with Industry Stakeholders

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Data Center Costs Across Various Locations

Emerging non-US data center locations such as Amsterdam, Dublin, Singapore and Hong Kong have lower salary costs which help in lowering data center operating costs
180 160 140 USD Thousands 120 100 80 60 40 20 0 IT Services Salaries across Key Global Data Center Locations Americas EMEA APAC

Mail info@talentneuron.com to access complete report

Min

Median

Max

Source: Talent Neuron, Interviews with Industry Stakeholders

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Government Incentives to Data Center Companies

Governments often provide tax incentives and lower energy costs to attract data center investments Swedish government provides cheaper energy and subsidies to encourage companies to setup new data centers In Canada, the government offers low taxes, low utility rates and economic incentives for green initiatives In Poland, the government provides cash grants and tax incentives In Australia, some state governments provide longer leasing terms to attract data center companies Few state governments in US provide sales tax exemptions on computer equipment and software Some state governments also provide electricity at lower costs along with property tax exemptions Singapore introduced new tax incentives to help data center operators offset the fixed capital expenditure incurred
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Source: Talent Neuron Web Crawling and Analysis

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