analyzing the business and technology of the web
You’ll see me in there somewhere. I think they misspelled my name and may have taken my “corn and pigs” comment out of context. But all in all they did a good job with the story…
Note: I cannot for the life of me get this clip to not auto-play… If you have any ideas let me know. Also note how much Gov. Chet Culver is sweating!
Technorati Tags: microsoft, data center, west des moines, iowa
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Microsoft *officially* announced its plans for the $500 million West Des Moines data center it is building.
Here are some details…
- “Next Generation” facility
- 50-75 workers at $70k annual salary
- 42 acres in West Des Moines (see map below)
- Construction to be completed in 12-18 months
Why Iowa?
- Tax Incentives
- Cheap Land
- Very (relatively) affordable power
- Cheap Labor (lower costs of living here mean lower relative wages)
- Fiber Backbone (the very UNDER-UTILIZED ICN Network)
- Central Geographic Location
Overall, there are up to and over 35 factors in data center site selection of this magnitude including what I mentioned above.
What’s a “Next Generation Facility”?
So what is this next generation facility going to power? As more and more of the web and business moves into “the cloud”, the need for an infrastructure to keep up demands new data centers. Microsoft is in a position where it’s taking many of its traditional platforms and and software into the “SaaS” model – or Software as Services. So when the next version of Microsoft Word comes out – it will be via a web browser, online. To power this next wave, Microsoft needs to build up its infrastructure. To get a handle on the challenge ahead of Microsoft, here are some numbers:
Microsoft challenges:
- 15x growth on servers
- 9x growth on egress
- 15x growth on power
- 3x growth on number of data centers
via DataCenterLinks
This “next-gen” facility will be different than the traditional data center, supposedly using the “container” model they have been working on. Basically a container is a semi-trailer (or shipping container that you see on barges and trains). Within this container are 1,000 – 2,000 servers. These containers are, literally, trailers that can be hauled in via trucks to scale the system. Microsoft has built a similar data center in Chicago that has two floors. Currently, the entire first floor is made up of 150-200 of these containers.
So basically what happens is a truck loaded with a “container” will pull into the facility, drop off the container, “plug it in” and turn it on. Bam! This container based data center often times can hold up to 11 times more servers than a traditional data center using the same amount of space.
Here’s a 3-D Demo of the Chicago Data Center – and what is likely coming to West Des Moines…
So where’s this going to be?
View Larger Map
Technorati Tags: west des moines, data center, microsoft, iowa
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I posted a comment to FriendFeed early today linking to an interview with Microsoft’s Debra Chrapaty where she said in a video Microsoft would be building a data center in Iowa. I’ve been waiting to hear more details since that comment before blogging but have heard nothing.
So if Microsoft invests in their new Iowa data center in the same manner as they traditionally have – we could see a $500 million facility coming our way. If Microsoft is going to reach their goal of having “many millions of servers” and competing with Google’s infrastructure this is the course they need to take.
No word as of yet on location… Why Iowa? Cheap(er) power, Cheap(er) labor, centralized location. Senate Majority Leader Michael Gronstal, D-Council Bluffs, said technology based companies look at Iowa because of the well educated work force and good training programs at community colleges (via Chicago Tribune). According to the Des Moines Register, the tax benefits are the same as the deal Google got in Council Bluffs…
The state agreed to provide sales and use tax exemptions on purchases of computers, equipment and electricity necessary for use in a Web portal business with an investment of at least $200 million in Iowa.
The technology equipment inside the building also would be exempt from property taxes.
The tax breaks are the same as the ones lawmakers passed last year to lure high-tech giant Google.
More to come as the news unfolds…
UPDATE: I just got word from KCCI the new data center will be located in the Greater Des Moines area…
Iowa Department of Economic Development spokeswoman Stephanie Bjornson said the company confirmed Tuesday its intentions to locate the center in the Des Moines area.
She said they are looking at a final list of sites.
Iowa Governor Chet Culver had this to say…
“On behalf of all Iowans, let me be among the first to say ‘Microsoft, Welcome to Iowa!’ In making its decision, Microsoft recognized what we in Iowa have known all along – our workforce and quality of life is second-to-none. One of my top priorities as Governor is to create good jobs with good wages, and together with Microsoft, we’re doing just that,” said Iowa Gov. Chet Culver. “Their decision to make Iowa their newest home will have a tremendous impact on our local economy and our state as a whole. Microsoft’s innovative spirit is a perfect match with that of our hard working people. We look forward to working with Microsoft in the coming months as this project takes shape, and expand our economic opportunities here in Iowa.”
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