San Diego data centers routinely encounter various issues when expanding their operations.
These problems range from exploding real estate prices, state restrictions, environmental red tape, etc. Because of these problems, data centers within this region have devised innovative methods in which to expand their operations.
Evaluating San Diego's Data Center Market
Organizations must weigh the pros and cons of expanding their off-site data center operations within Southern California.
On one hand, the area is home to some of the top tech companies in the world. Being within close proximity of these businesses can provide your organization with several strategic advantages.
On the other hand, colocation providers have encountered problems that have caused them to rethink how their data centers can be expanded. Because of these factors, data center space in San Diego may come at a premium when compared to other West Coast providers.
Data centers in Southern California that are looking to expand using conventional means can encounter the following 3 problems:
1. Environmental Red Tape
The red tape involved with environmentalism can add burdens for colocation providers that choose to expand their facilities.
California has some of the most stringent environmental regulations in the United States. San Diego businesses must hire attorneys, environmentalists, and professors to complete the "San Diego Environmental Impact Report" in order to expand.
These reports can be costly, time-consuming, and impede your organization’s internal timelines.
In a recent Barrio Logan development, the San Diego Final Program Environmental Impact Report was 857 pages long.
2. California is Currently Experiencing a Record Drought
The United States Energy Secretary said that California's current drought could lead to summer brownouts.
Although California has steadily increased its reliance on alternative energy, data centers still derive much of their power from hydroelectricity.
Because of the absence of water and precipitation, data center operators could find it more difficult to expand their facilities within this region.
3. San Diego Real Estate Prices are on the Rise
While San Diego’s land values dropped significantly in 2006, the market has rebounded dramatically.
According to Zillow, property values in San Diego have spiked 3.6% in the past 12 months. When it becomes time to expand, rising property values can enter a data center's profit margins.
With these three factors in mind, how are San Diego data centers achieving expansion?
Reviewing redIT’s San Diego Data Center Expansion
RedIT completed its San Diego Rancho Bernardo data center expansion. Rather than building a data center from scratch, redIT’s COO Mark Barlow took a different approach.
Barlow and his team decided to implement modular data centers. When discussing redIT’s San Diego data center expansion, Barlow mentions,“By implementing a modular approach to expansion, we can react properly to the ever-changing market and accommodate advancements in technology.”