Posts Tagged ‘Reno Technology Park’

My story in Reno and receiving the Technologist of the Year award

Monday, April 3rd, 2017

A few nights ago I was honored to receive an award from NCET as Technologist of the Year. This journey started nearly 15 years ago, so I thought I would share more about it.

In 2002 I finished the build out of a colocation data center in Reno, Nevada. I never thought I would come to Reno yet an opportunity to lead a colocation data center company focused on middle sized but underserved cities was appealing for many reasons. Early with this data center in Reno I experimented with and used air economization and hot-cold aisle containment, each very unknown ways to improve data center energy efficiency, perhaps the first use of these techniques, and they did significantly reduce energy use.

Starting in 2004 and for over a decade I worked mostly remotely from Reno for Google (when we started buying, designing, building and operating internal data centers), and Equinix (the largest data center provider), DuPont Fabros (at the time second largest wholesale data center provider), Yahoo!, in which I managed global data center strategy and development at a time when we were building out large internal data centers and expansions around the globe. I also worked for BEA Systems before acquired by Oracle running their global data centers, and completed long-term marketing and product development consulting for Digital Realty, the largest wholesale data center provider, and many others, including Facebook and other Big 7 Internet companies. I call Apple, Google, Microsoft, Amazon, Facebook, Yahoo! and eBay the Big 7, as they build, own and operate the majority of data centers, outspending data center capital every year of all of the colocation providers by a factor of almost 10. I have been lucky enough to work with five of these seven big data center companies.

In the midst of this, myself and others worked together to create and build the Reno Technology Park (RTP), the largest dedicated data center campus known at the time, located just outside of Reno in Washoe County. I worked with many companies to influence them to locate a future data center in Reno, and secured Apple as the first tenant of the RTP.

While maintaining a residence in the Reno area, with its very close proximity to Lake Tahoe, fabulous skiing, mountain biking, cycling and other activities that I love to do and have spent much time in the area for years playing. Yet with a home in the area, I avoid the congestion and high cost of living of the SF Bay Area and also a state income tax. There are many workers in technology companies that live and work in the Reno area and many like me that live in the Reno-Tahoe area yet commute to the Bay Area or elsewhere for work as needed, including executives of technology companies.

Because of the many great companies and people working in the Reno area I am even more humbled to receive this award. Thank you NCET and the board for this recognition and Abbi Whitaker for her nomination. Having developed data centers in over 20 countries and data center site selections in almost 30 countries as well as throughout the United States, I saw that Reno Nevada was a good place to locate data centers, and that they would be great for the local economy. I wanted to bring my industry to my home, and see the local economy continuing to grow and evolve.

I commend the team at EDAWN, Governor Sandoval and his staff including Steve Hill for helping to make these wins. I look forward to continuing to work with our community, all of you, NCET and EDAWN to see Reno’s economy grow and develop.

Apple+Reno+Solar = “Controllable Power”

Monday, July 8th, 2013

Some of you know that I have developed the Reno Technology Park along with a few others. I am the sole data center expert in the group and when I first viewed the property, I saw that it had potential as a site for data centers with the property being laced with electricity and natural gas transmission lines, main fiber routes crossing thru the property, and proximity to clean power plants. However, that infrastructure was not enough to sway me to get involved. The project needed lower cost power and tax options.

At my insistence, we created some unique tax incentives, but as a data center power guy for nearly two decades negotiating power deals and developing power plants, I saw the real potential was for clean, “controllable” power. I brought Apple to the site last spring and they too saw the same potential.

Fast forward now just over a year, and Apple has one operational data center building, a second data center building fast approaching commissioning, and now an announcement of a nearby 18-MegaWatt solar project near the Reno Technology Park. Here are some links to public articles about these announcements:
http://www.macrumors.com/2013/03/27/first-phase-of-apples-new-reno-nevada-data-center-ready-to-open/
http://www.datacenterknowledge.com/archives/2013/03/27/apple-ready-to-roll-in-reno-with-a-coop/
http://www.rgj.com/videonetwork/2264915824001?odyssey=mod%7Ctvideo2%7Carticle
http://www.datacenterknowledge.com/archives/2013/07/02/apple-planning-solar-farm-next-to-planned-reno-nevada-data-center/
http://www.computerworld.com/s/article/9240559/Apple_unveils_18_megawatt_solar_farm_to_power_cloud_data_center?source=CTWNLE_nlt_pm_2013-07-03)

Being under NDA with Apple, I cannot expand upon these articles with information from other sources. So let’s talk about what I mean by “controllable power”. The ability to take control of what I call the “Three C’s”: cost, capacity and control. Control being the deliverability, schedule and mix of that power, as well as controlling the future cost of the electricity. Cost being current and future costs, as when we plan to operate a data center, we must take into account the total electricity cost over the expected life, usually 10-20 years. And ideally, we don’t just want a low cost today, but more importantly a low average cost over that life cycle. I see too many folks run to a market with low-cost electricity today but not realize that those low costs will go up, and often within 1-3 years and to an average much higher than other location options. Predicting and seeing these future costs is one of the key advantages to using MegaWatt Consulting for your data center site selections and not another company, as I do not see any other company looking at all of the factors that will influence future data center costs like we do. Do you want to choose a site that has great costs before you start constructing yet high costs by the time you fill it and be surprised that your site is not a low cost site a few years from now, or go to a site that will continue to provide low costs for years to come?
And capacity is key, as there is a cost to bringing power capacity to a project and sometimes that is enormous. For example, a few years ago I was consulting for Equinix and the cost they were quoted by the utility to bring power capacity to a site was equal to nearly one-third of the construction cost for an entire new and large data center! That would have added nearly 50% to the total construction budget! I was able to negotiate that down to less than 10% of the total project budget, but still a very large expense and one that is often not accounted for during site selection TCO estimates. All proving the point that controllability of power over time–each it’s cost, capacity, mix and deliverability—provide significant benefits to a company and it’s costs over time.

Whether or not Apple is responding to pressure from Greenpeace, NY Times’ articles, their stockholders, consumers or other shareholders, having a data center site that can provide flexibility for the many factors over time is key to adjust to changing needs. Whether those needs are costs, the fuel mix, deliverability or reliability of that power, all provide significant benefits when they can be controlled to meet changing needs over time. And all needs change over time, and being that electricity cost drives a 10-year Net-Present Value analysis of data center ownership, “controllable power” is essential to good data center cost management.

If you’d like “to take control” of your data center’s a key driver of current and future costs, as well as combat changing pressures from shareholders, markets and other factors, let’s talk about some options.