data centre cost benchmarking - an insight & common pitfalls
TRANSCRIPT
Data Centre Cost Benchmarking – An Insight & Common Pitfalls
November 10 2016
Agenda
2
Introductions Questions &
Answers
Conclusion Benchmarking
Data Centres
Examples
Common Pitfalls
Benchmarking
Rational /
Methodology /
Types
Construction
Trends
Global
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Introductions
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Who we are
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Currently working on projects
with a value of US$30bn
across the regions
Global Construction Consultants
• Project Management, Project Controls & specialist
Consultancy
• We service clients in 150 cities in over 40 countries
• Operating for 42 years
• Headquartered in Dublin Ireland
• ISO Accredited - QEHS
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What we do
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Program Management Project Management
Knowledge Center Global market cost analysis | Insights
Project Controls
Consultancy Health & Safety Supply Chain
Management
Procurement
Cost Management
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Global offices and project locations
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Offices 17 Global offices throughout Europe,
the Middle East, Asia Pacific and
North America.
Projects 150 cities in over 40 countries
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Construction Trends
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Global Trends
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• Market Size of Top Global
Construction Markets
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Global Trends
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Share of Construction Spending by Region 2020
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Global Trends
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Global Growth Forecasts for 2015 & 2016 ( % GDP growth )
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Global Trends
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Global Capital Flows in Real Estate in 2015
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Netherlands Market
Overall Construction contributed 4.38% to the GDP in Netherlands ( GDP $752Bn )
Data Centre Construction – remains a significant contributor
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Netherlands Market
• Current Tender Pricing at 2012 levels.
• In context of tendering, Inflation considered to be flat
• Attractive time to be building?
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Benchmarking
Rational / Methodology / Types
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Benchmarking – Rationale & Uses
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• Part of a greater topic on ‘Market Intelligence’
• Aims to establish how much a company/organisation needs to improve to be at world class levels of performance in their strategy and associated business processes, business results, and critical enablers.
• Identifies gaps by triangulating between current performance, other companies performance, and world class performance
• Increasing appetite from Client
• Uses
—Price Point (Macro & Micro Level)
—Costing Models for Capex / Opex
—Negotiation Tool
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Benchmarking – Methodology
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• Determine What to Benchmark
• Identify Performance Measures
• Identify Benchmark Partners / Sources
• Determine Data Collection / Analysis Plan
• Measure Yourself
• Measure Partner / World-Class Organization
• Analyse Gaps
• Specify Goals / Action Plan to Meet and Surpass
• Implement and Monitor Progress
• Data has NO value unless it is used.
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Benchmarking – Practical Advantages
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• Consistent global approach for all users
• Assists with budget development & forecasting
• Optimisation of Negotiation plans
—Consistent approach to negotiation
—Generation of regional negotiation targets
—Facilitates more in-depth negotiation
• Unit price comparison as well as $/MW
• Availability of historical unit pricing for comparisons
• Helps identify inconsistent pricing from vendors
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Benchmarking – Types
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Example of Time to Market Analysis of 6no. Equip vendors Example of GEO Benchmark Comparisons of 6no. Projects
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Benchmarking
Data Centre Examples
Common Pitfalls
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Data Center Experience
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31 USA & Mexico
15 Europe
8 Aus/NZ
20 Middle East
7 APAC
120 Data Centers Worldwide
+20 m Sq. ft. of white space
+2000mw Mega Watt critical power
20 UK
19 Ireland
General Benchmarking : International Construction Cost Range Index 2015
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30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
India
Bahra
in
Om
an
UA
E
Germ
any
Ch
ina
Qata
r
Kuw
ait
US
A
Ne
therl
and
s
Irela
nd
Japa
n
Austr
alia UK
Sin
ga
po
re
Global DC Benchmarking : US$m / MW
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12.96
12.7008
12.64
12.46
12.35
12.3
12.25
11.81
11.43
10.59
9 10 11 12 13
New York
San Francisco
Singapore
Amsterdam
Frankfurt
London
Paris
Melbourne
Sydney
Dublin
US DC Benchmarking : o|a US$m/MW
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Region
2
$12.5m/MW
Region
3
$10.4m/MW
Region
4
$11.1m/MW
Region
1
$10.9m/MW 0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
Construction CSA Mechanical Installations Electrical InstallationsEquipment Security IT CablingFees, Prelims, Tax Hot Aisle Containment Design
Common Pitfalls
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• Land
• Incoming Power / Utilities
• Site Conditions
• Building Type (Single / Double / Multi storey)
• Soft Costs
• DC Density per rack
• Currency / Fx
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Common Pitfalls
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• Tiering
• Total Cost of Ownership
• Seismic Constraints
• Demarcation line for Fit-Out Works
• Deployment of Capex for future phases
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Conclusion
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Conclusion
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• Setting the baseline is key to successful benchmarking
• Dangerous tool if not correctly calibrated
• Benchmarking can be used in many ways throughout the project journey
• Overall aim = Greater Market Intelligence for Informed Decision Making
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Thank you.
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Contact details
Pat Unger, Snr. Project Manager
Mobile: +353 872238255
pat.unger@linesight,com