What Are Data Centers
In today’s world, data centers are used to support every aspect of life, including food, clothing, housing, transportation, healthcare, social activities, and more.
The U.S. Environmental Protection Agency defines a data center as: "Primarily electronic equipment used to process data (servers), store data (storage equipment), and communicate (network equipment). Collectively, this equipment processes, stores, and transmits digital information."
Benefits of Data Center Construction
Since 2016, the data center construction market in Kazakhstan has experienced steady, albeit not explosive, growth. Demand for server racks remains unsatisfied, and the shortage is measured in hundreds of racks. Data center margins can reach 40%, while the payback period, in most cases, does not exceed three years.
However, the data center construction market has a relatively high barrier to entry and is often financed up to half by various investment funds (by comparison, in other countries, the share of financing provided by investment funds does not exceed thirty percent).
Naturally, a logical question arises: if the business is so financially attractive, why think about strategic planning?
The Need for Strategic Planning Is Growing
The need for strategic planning that enables any system to survive in long-term competition has risen sharply in recent decades. Under conditions of intense competition and rapidly changing circumstances, all companies must develop a long-term strategy that enables them to adapt to future changes.
The growing importance of IT in the activities of companies and organizations worldwide can easily be traced through the transformation of the chief IT officer’s role. At the dawn of IT department development, companies and organizations introduced the position of head of the IT department. As companies grew, this position evolved into deputy director for IT. Today, however, the position of deputy director for digital transformation is in greater demand. IT is being forced to move to a more strategic level.
Why the Relevance of Strategic Data Center Planning Will Continue to Grow
First: The Pandemic Is Not Over, and We Will Feel Its Consequences for Several Years to Come
A distinctive feature of local design practices is that the design documentation being developed is initially tailored to predetermined equipment and manufacturers. At the same time, the design organization may completely overlook the logistical specifics of equipment deliveries. This is understandable: its interests are limited to selecting the right technologies based on the owner's requirements and securing approval of the concept as quickly as possible.
Meanwhile, according to information from the well-known analytical company IKS-Media, equipment delivery is an issue that is often needlessly overlooked. This is because the future data center owner will have a better chance of implementing the project on time if it has experience working with suppliers on previous projects. Its market reputation will also give it a stronger negotiating position with suppliers, as will the standardization of components across several projects.