Here’s what you need to know about the Northern Virginia data center market as it exists today: There’s no new land for data centers in crowded Data Center Alley and there’s a lot of discussion about available utility power.
Hyperscalers still want to be in this market but are facing multiple constraints to rapid deployment. There’s just not a viable way to offer them what they want unless you’re a data center provider that’s willing to step outside of the normal development way of thinking.
There are ways to become a data center disruptor in highly sought-after markets such as Northern Virginia and offer hyperscalers what they want when no one else will.
Speed to market is an advantage
Acquiring and owning your own land for data center builds is a huge advantage.
When you own land sites, you can offer fast-track approvals and meet zoning requirements to help shave months off a hyperscaler’s construction timeline.
By offering the unique advantage of not only owning precious real estate in NOVA’s availability zones, you also have the benefit of serving as the land-site developers for next-generation projects.
Have the financial backing in place
In an industry as capital intensive as ours, financial backing is crucial. Data center companies that have joint venture commitments with credible investment management firms are the green flag you need to ease your mind.
You can rest easy knowing that your project will be completed to world-class data center standards when the financials are properly in place to see a project to the finish line.
Having construction funded through a lucrative joint venture agreement, combined with the experienced team in place to handle next-generation data center projects, gives you a big edge over your competitors.
Focus on redevelopment of existing properties
Buying existing properties and providing full redevelopment of new purpose-built data centers to fulfill hyperscaler build out wish lists is the way of the future.
Always view underutilized properties or properties that don’t fit well in their current state as opportunities to provide something new for data center clients, which leads to community revitalization.
Prioritize development opportunities near existing resources
While new builds are prioritized in traditionally established locations, the power density and cooling solutions make these locations cutting-edge. Those high-tech data center build sites must always be prioritized, though, near crucial existing resources such as power, water, reclaimed water and fiber optic cable.
Embrace and enhance community relationships
Utilizing an in-house development team that has decades-long relationships in the area to build out your projects from site planning to data center completion, while providing flexibility for clients’ needs is absolutely critical in today’s world.
Having these types of resources in congested markets allows you to know your particular data center build is in good hands. You also know that you have the credible staff needed to work with a myriad of government agencies and planning boards to get aspects of your project approved.
Offer on-site substation power
Power is always a priority. Make it one with your data center offerings even before complete build-out. Addressing the power issue by offering on-site substations in partnership with the local energy authorities is a win for all involved.
Offering on-site substations for sites with unclear power delivery timelines provides another opportunity to offer something in a market that no one else is providing.
Exude experience with your staff
Data center experience is more than just construction. It involves having high-caliber people with professional experience in all aspects of the data center industry to make everything run smoothly from start to finish.
For hyperscalers that can’t afford any delays in their efforts to manage more data, this is a must have.
Those seeking this type of professionalism should also look for a company with tenured executives and front-line personnel that have hands-on mission-critical experience leading multi-million dollar data design and construction, project management and operations.
Flexibility comes first
Data centers that provide Build-to-Suit and Build-to-Spec configurations with robust connectivity, future-proofing and customization are the way of the future. Customers now more than ever expect developers and owners to handle all aspects of their future powered shells.
Even more important? They are looking for a company to handle everything, from land purchases to fast-track approvals to zoning approvals and build outs.
PowerHouse is working diligently to find answers to a Data Center Alley market that has run out of existing use space for hyperscalers.
This data center disruptor works from land purchase to hyperscale build out to create a suitable and sustainable environment for clients and the surrounding community, while offering the quickest speed to market of any Northern Virginia and beyond project.