Data Centers A Catalyst for Growth in Georgia Critical Mass of Metro Atlanta Data Centers ! ( ! ( ! ( Georgia Power – Your Partner for Mission-Critical Locations ! ( ! ( ! ( ( ! (! ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (! ( (! ( ! (! ! ( ! ( ! ( ! ( ! ( ! ( Co-location and wholesale facilities Critical mass of enterprise and Internet data center locations Source: Georgia Power Community and Economic Development Why is metro Atlanta home to more than 60 major co-locations and enterprise data centers for leading global companies? These services are offered at no cost or obligation. For enterprise data centers, all project information is treated confidentially throughout the site selection period and the life of a facility’s operation. For managed services and co-location operations, we will assist in marketing your facilities to potential customers. Georgia Power’s award-winning Economic Development division has provided site location services to industrial and corporate decision-makers for more than 85 years. Since 2005, our team of data center specialists has assisted data center project locations that represent combined power loads in excess of 400 MW at full build-out. Our database includes the entire state, even those areas not served by Georgia Power, so be confident in discovering all site and building options to meet your business needs. Our services include: • Access to our statewide real estate database and search tools for land sites and existing buildings that are well-suited for missioncritical facilities • Electric infrastructure evaluation • Consultation on electric service methods, power quality issues and rate analysis • Preliminary engineering evaluation and site layout services • Liaison with entities that administer incentives • Coordination of site tours Georgia Power Projected Generation by Type, 2018 Coal 29% Gas/oil 50% renewable 2% hydro 5% nuclear 14% • Highly reliable power infrastructure • Favorable business climate • Availability of technical talent • Accessibility Result: low total cost of ownership in Cents per kWh Georgia offers Washington D.C. the electric power infrastructure required by mission-critical facilities: highly reliable, ATLANTA redundant electricity coupled with low to moderate Dallas SanIn Antonio costs. most cases, customers constructing new San Francisco facilities with an initial connected load of 900 Los Angeles kilowatts (kW) or greater may choose their supplier. New York This is a one-time decision by the customer. 0 2 4 6 8 10 12 14 16 18 20 US AVERAGE • Low risk of business disruption Average Utility Costs for Industrial Customers Atlanta’s Locational Advantages: Highly Reliable Power Infrastructure and Competitive Electric Rates US AVERAGE and competitive electric rates • Access to bandwidth and fiber Washington D.C. ATLANTA Dallas San Antonio San Francisco Los Angeles New York 0 2 4 6 8 10 12 14 Note: These costs are the average industrial retail prices by end-use sector based on the largest provider serving the city. Source: Energy Information Administration, 2015 (2013 data is latest available). The city prices above were reported by EIA with the following providers: San Antonio (City of San Antonio/ CPS), Atlanta (Georgia Power), Los Angeles (Los Angeles Dept. of Water & Power), Washington D.C. (average of providers), San Francisco (PG&E), Dallas (TXU Energy Retail) and New York (Consolidated Edison). GEORGIA POWER COMMUNITY & ECONOMIC DEVELOPMENT – YOUR PARTNER IN BUSINESS © GEORGIA POWER, July 2015 1 Powering Your Data Center Partner with Georgia Power for your data center location. About Georgia Power Georgia Power is the state’s largest utility with a net plant investment of more than $16.4 billion. The company serves 2.4 million customers in Georgia, including 310,000 businesses and industries. Georgia Power is a unit of Southern Company, which owns generating capacity of nearly 43,000 megawatts (MW) and provides electricity to nearly 4.4 million customers in the Southeast. Reserve margins and planned capacity additions ensure that the supply will continue to meet the growing needs of customers. Georgia Power offers rates below the national average, providing customers with a variety of pricing choices, including real time pricing options with no demand charges. Georgia Power has developed network power distribution systems, which provide customers with superior reliability. This design has several levels of redundancy, ensuring that service will not be affected if a circuit, transformer, or substation transformer fails. These systems are reserved for high-density loads in metropolitan areas such as metro Atlanta. An account manager is assigned to data center customers with demand in excess of 1MW. You can rely on this individual to ensure that you are on the rate structure that best fits your operation, to coordinate any utility construction projects required to support or energy efficiency technologies. A Southeast Leader in Renewable Energy Initiatives Georgia Power consistently pursues opportunities to grow renewable generation in Georgia. The company deploys reliable, cost effective renewable energy sources that work best in our state to meet our customers’ growing electricity needs, and continually evaluates our generating capacity to provide clean, reliable and affordable energy for our customers. Energy resources – such as wind and solar – are constantly renewed and serve an important and growing role in our ability to serve customers. The company expects to have contracted for more than 3,000 MWs of renewable capacity by 2016, as well as continuing to support research and demonstration projects of renewable and emerging technologies. Among our company-owned initiatives are multiple large scale solar self-build projects with the Military, a 1-MW self-build solar demonstration project, a solar research project at Georgia Power’s corporate office and multiple wind technology demonstration projects. In addition, the company offers multiple options for customers with solar on their rooftop to sell back to Georgia Power. Commercial and industrial customers may purchase large blocks of green energy at a reduced cost through the company’s Green Energy program. Customers who purchase at least 900 blocks (90,000 kWh) of Green Energy monthly are eligible to participate in the Large Volume Purchase Option. The company will contract with each interested customer individually to determine the price, quantity, term, and source of the additional green energy. Georgia Power Renewable Activities Biomass: More than 600 MW online and under contract from qualified facilities, in addition to biomass capacity to serve our Green Energy Program customers. Solar: Georgia Power expects to have more than 900 MW of solar online by the end of 2016. •Georgia Power anticipates more than 500 new solar projects will be constructed in Georgia in the coming years as a result of its existing solar programs, including the Large-Scale Solar initiative and Advanced Solar Initiative (ASI). •SEPA (Solar Electric Power Association) named Georgia Power the “Investor-Owned Utility of the Year” in 2014 for building the largest and fastestgrowing voluntary renew­able energy portfolio in the United States. •A solar photovoltaic (PV) demonstration project on the roof of the corporate headquarters continues to gather data on leading edge solar technologies. •Southern Company and Tesla will test commercial-scale battery storage, providing for the examination of potential applications for the energy storage technol­ogy in helping meet customers’ energy needs. Landfill Gas: 9.6 MW capacity from two sources to supply Georgia Power’s Green Energy Program. Wind: Georgia Power will purchase 250 MW of wind energy through 20-year Power Purchase Agreements that are below avoided costs. 151 MW will be delivered from wind farms in Southwest Oklahoma beginning in 2016. The elec­tricity purchased will provide enough electricity to power more than 50,000 Georgia. Hydro: 1088 MWs of hydro generation – enough electricity to power more than 257,000 homes. Nuclear: When completed, two new units of emission-free generation will add 2,200 MW of capacity to the Georgia portfolio. Southern Company Smart Power Highlights • Southern Company is on schedule to be the first U.S. utility in more than 30 years to build new nuclearpowered generation, adding more than 2,200 megawatts of capacity at Georgia Power’s Plant Vogtle. Currently, two existing units have more than 2,400 megawatts of capacity at Plant Vogtle. • Southern Company is the industry leader in carbon capture and sequestration. A 582-megawatt transport integrated gasification (TRIG) plant is being built with technology that will capture 65 percent of the carbon dioxide emissions from the plant. 2 GEORGIA POWER COMMUNITY & ECONOMIC DEVELOPMENT – YOUR PARTNER IN BUSINESS © GEORGIA POWER, July 2015 Access to Bandwidth and Fiber Metro Atlanta is one of the most heavily-concentrated telecommunications cities in the U.S. Atlanta is the major interconnection point on the Eastern seaboard between New York and Miami and on to South America. Metro Atlanta ranks in the top five U.S. markets for total bandwidth and fiber access. Two of the country’s largest fiber routes – North/South and East/West – cross in metro Atlanta. On January 2015, Google announced expansion of its fiber network to four more cities, including Atlanta. Telecom Companies Operating Metropolitan and Long-Haul Networks that Connect to Metro Atlanta AmeriMex Communications Corp. The Southeast’s largest concentration of telecommunications companies sits at the heart of Downtown Atlanta. AT&T Broadvox LLC BT Global Services CenturyLink Inc. Charter Business Atlanta: A Major IP Node on All Major Provider’s Network Map Virtually every major international and North American provider’s network map places Atlanta among a handful of U.S. cities that possess a core IP peering node. Below is an example of just one of those providers. Cogent Communications Group Inc. Comcast / Time Warner Cox Business EarthLink Carrier FiberLight LLC Orange Long-Haul Routes for One of Many Providers: NTT America Georgia Public Web Inc. NTT IP Network GTT Global IP Network Pop Global IP Network POP Hibernia Atlantic Host.net Hurricane Electric Internet Services Level 3 Communications LLC Masergy MegaPath Net2Atlanta.com LLC NTT America Inc. PointOne.com Reliance Globalcom SAGO Networks Southern Telecom Inc.* Sprint T-CUBED (Norkfork Southern Corp. subsidiary) Telepacific Communications TeliaSonera Telx (Form. Atlanta Internet Exchange) Transtelco Verizon Business Windstream Communications XO Communications Zayo Group LLC Verizon Business Windstream Communications (KDL) XO Communications Zayo Fiber Solutions LLC Zayo Group LLC Source: NTT America, 2015 GEORGIA POWER COMMUNITY & ECONOMIC DEVELOPMENT – YOUR PARTNER IN BUSINESS © GEORGIA POWER, July 2015 Source: Company websites and research by Georgia Power Community & Economic Development *Southern Telecom Inc., a wholly-owned subsidiary of Southern Company, provides metro dark fiber that can deliver last-mile service to ensure fast connections between you and your customers in the Southeast. (www.southern-telecom.com) 3 Low Risk of Business Disruption Georgia is low risk for natural disasters. “With the Atlanta market, we are witnessing a remarkable shift as this region becomes a magnet for technology and innovation driven by advancements of data-centric sectors from finance and mobility to logistics, retail and healthcare IT. The convergence of these markets supported by data center and cloud services creates boundless growth potential for us and our customers here. As the region continues to expand, we will remain deeply interested and invested in their success.” Risk Avoidance – Earthquakes Natural disaster risks, including risks of seismic-related weather impacts, are low in Georgia. There are no active fault lines in the area. United States Seismic Hazard Map Peak Horizontal Acceleration (%g) with 2% Probability of Exceedance in 50 years WA ME MT ND MN OR VT ID SD WI NH MA NY MI CT WY RI NJ PA IA NE NV OH UT IL CA David Jones, CEO, Peak 10 MD DC IN KS Source: “Peak 10 Opens Third Atlanta Metro Data Center,” DataCenterKnowledge.com, 09.02.2014 DE WV CO VA MO KY NC TN OK AZ AR NM SC MS TX AL GA LA © 2015 Georgia Power FL Peak Ground Acceleration – % Gravity Peak Ground Acceleration - % of Gravity Intervals Intervals 0-2 9 - 11 18 - 20 41 - 50 81 - 120 3-5 12 - 14 21 - 30 51 - 60 121 - 160 6-8 15 - 17 31 - 40 61 - 80 161 - 200 Source: 2014 U.S. Geological Survey National Seismic Hazard Mapping Project, US Geological Survey Earthquake Hazards Program; http://earthquake.usgs.gov/hazards/products/conterminous/ Risk Avoidance – Hurricanes Located 250 miles from the Gulf of Mexico and 240 miles from the Atlantic Ocean, Atlanta is not subject to hurricane activity. Georgia Positioned at Low Risk for Hurricanes Hurricanes from 1900-2014, Categories 3, 4 and 5 Courtesy of Savannah Economic Development Authority 4 GEORGIA POWER COMMUNITY & ECONOMIC DEVELOPMENT – YOUR PARTNER IN BUSINESS © GEORGIA POWER, July 2015 Favorable Business Climate Atlanta offers lower total cost of ownership. Georgia has a long history of being business-friendly and its tax structure helps make the state one of the most cost competitive in the country. In Georgia, corporate income tax is based only on sales within the state, so the capital investment and payroll attributed to data center operations do not create an income tax burden. Sales tax is a reasonable 6 – 8 percent in the Atlanta area, and there is a special salesand- use tax exemption for qualifying high technology companies that spend $15 million within any calendar year on qualified computer hardware and software. In addition, software applications uniquely designed to meet the needs of a given business enterprise are not subject to sales tax. Property taxes are favorable, with effective rates ranging from $8 – $17 per $1,000 of fair market value across the region. Larger data center projects may be able to negotiate property tax relief for land, building and equipment. Georgia Power economic development professionals will facilitate this process for you. Another local incentive is accelerated permitting. Given the concentration of mission-critical facilities in the metro Atlanta area, local governments are experienced in fast-track permitting for data centers. Lower Costs Attract Companies The cost of living and cost of business are favorable in metro Atlanta, generally falling well below the U.S. average, which is unusual for such a large metropolitan area. Atlanta’s Cost of Doing Business is Lower US AVERAGE Cost of Doing Business Index San Antonio ATLANTA Phoenix Dallas Fortune 500 Companies Headquartered in Georgia by Georgia Revenue Rank 1 Home Depot (33) 2 United Parcel Service (47) 3 Coca-Cola (63) 4 Delta Air Lines (73) 5 Aflac (132)* 6 Southern (163) 7 Genuine Parts (199) 8 First Data (265) 9 Rock-Tenn (293) 10 AGCO (296) 11 HD Supply Holdings (316) 12 SunTrust Banks (327) 13 Mohawk Industries (362)* 14 Coca-Cola Enterprises (368) 15 NCR (412) 16 Asbury Automotive Group (450) 17 PulteGroup (453) 18 Newell Rubbermaid (455) 19 AGL Resources (465) 20 ARRIS Group (492) *Headquarted outside metro Atlanta Source: FORTUNE magazine, June 4, 2015 Los Angeles San Francisco Washington D.C. New York 0 20 40 60 80 100 120 140 160 Source: Moody’s Economy.com State Cost of Doing Business Index, May 2014 (2012 data). SITE SELECTION “Top State Business Climate” 1. GEORGIA 2. Louisiana Atlanta Construction Costs Lower than U.S. Average 3. North Carolina Construction Cost Comparison, Select Cities Texas US AVERAGE San Antonio Dallas 4. Ohio 5. South Carolina ATLANTA Source: “2014 Top State Business Climate Rankings,” Site Selection, November 2014 Phoenix Washington D.C. Los Angeles San Francisco New York 0 0.2 0.4 0.6 0.8 1 1.2 1.4 Source: RS Means Square Foot Costs, Construction Costs Location Factors, 2015 (Commercial Rates). Note: Construction costs are based on a national average for materials and installation. To adjust these costs to a specific location, multiply the base cost by the factor for that city. GEORGIA POWER COMMUNITY & ECONOMIC DEVELOPMENT – YOUR PARTNER IN BUSINESS © GEORGIA POWER, July 2015 5 Technical Talent and Labor Costs Affordable technical talent is here, with more than 43,000 IT professionals in the Atlanta area. Selected IT Occupations in Metro Atlanta Hourly Earnings Atlanta’s Top Technology Employers Description ranked by # of full-time employees in metro Atlanta Computer and Information Systems Managers 8,796 $61.48 Computer Hardware Engineers 1,070 $46.88 Computer Programmers 8,647 $40.77 14,398 $36.56 1 AT&T | AT&T Mobility 18,076 Employment 2 Cox Enterprises Inc. 7,255 Computer Systems Analysts 3 Turner Broadcasting | Time Warner 5,500 Database Administrators 3,748 $40.36 4 Verizon Wireless 3,974 Information Security Analysts, Web Developers, and Computer Network Architects 7,861 $41.59 5 Automatic Data Processing Inc. 3,402 Network and Computer Systems Administrators 8,302 $38.18 6 McKesson Corp. 3,289 Total 52,823 $43.20 7 NCR Corp. 2,915 Siemens Industry | Energy | 8 Healthcare | Software 2,600 9 General Electric Co. (GE Energy) 2,200 Source: EMSI, 2015.1 10 Fiserv Inc. 1,932 11 Equifax Inc. 1,678 12 UPS Supply Chain Solutions 1,652 13 Cisco Systems SPVTG 1,600 14 First Data Corp. 1,500 15 Macy’s Systems and Technology 1,316 16 Hewlett-Packard Co. 1,300 17 Lexisnexis Risk Solutions 1,260 San Antonio 18 AirWatch LLC 1,150 Dallas 19 Scientific Games Corp. 1,100 20 General Motors Innovation Center 1,000 Source: 2014 Metro Atlanta Top Employers, Metro Atlanta Chamber (MAC), and Atlanta Business Chronicle Book of Lists, December 2014 Talent Acquisition While IT talent is abundant in metro Atlanta, salaries tend to be moderate, compared with other metropolitan markets due, in part, to cost of living below the national average. $37.60 $42.38 US AVERAGE Average Combined IT Wage (Hourly Earnings) $43.20 ATLANTA $46.00 Los Angeles $48.50 Boston $50.82 New York $51.34 San Francisco Georgia Technology Center Live lab for network equipment vendors to highlight their optical and electrical hardware and operating systems. For more information, visit http://www.GeorgiaTechnologyCenter.com $35 $41 $44 $47 $50 $53 Average Combined IT Wage (Hourly Earnings) Local Expertise in Specialized Data Center Technology $37.62 San Antonio A number of metro Atlanta universities offer the $42.38 gold standard certification for data centers – the Dallas Certification in Information Assurance as certified by the National Security Agency and the $43.14 ATLANTA Department of Homeland Security. Four universities, Georgia Institute of Technology (Georgia Tech), $45.99 Los Angeles Clark Atlanta University, Kennesaw State University, Southern Polytechnic University and Columbus State University are National Centers of Academic Excellence in this field. The Georgia $48.51Tech Information Security Boston Center (www.gtisc.gatech.edu) is a leader in research involving secure future applications and deployment $50.86 New York of quality-of-information assurance. Southern Polytechnic University offers graduate certificates in $51.25 San Francisco Information Security & Assurance. $35 6 $38 Source: EMSI, 2015.1 $37 $39 $41 $43 $45 $47 $49 $51 $53 GEORGIA POWER COMMUNITY & ECONOMIC DEVELOPMENT – YOUR PARTNER IN BUSINESS © GEORGIA POWER, July 2015 * IT-Related Higher Education Across the state of Georgia, more than 2,500 new graduates received an IT-related bachelors or masters degree in 2013 and nearly 234,000 students are enrolled in state colleges and universities that offer IT programs. Statewide, nearly 800 new graduates received an associates (2-year) degree or certificate in IT-related fields in 2013 (IPEDS). A technical certificate in Mission-Critical Facilities Management is offered through the technical college system. Georgia Tech: Leading the Way in Data Center Research Advancing data center technology is a research priority at Georgia Tech. The university’s researchers are using a 1,100-sf simulated data center to develop and evaluate new ways of controlling heat in commercial data centers. The researchers, led by Professor Yogendra Joshi of the Woodruff School of Mechanical Engineering, have found ways to cut energy cooling costs 15 percent by rearranging servers and space for optimal airflow patterns. “Our data center laboratory is a complete sandbox in which we can study all sorts of options without affecting anybody’s computing projects. We can look at interesting ways to improve rack-level cooling, liquid cooling and thermoelectric cooling.” Workforce Pipeline Through Georgia’s one-of-a-kind HOPE program, scholarships are available for both bachelors and technical certificate programs, regardless of financial need. Source: “Keeping Their Cool: Researchers Develop Improved Techniques for Controlling Heat in Large Data Centers,” Georgia Tech News, 6.2.09 “The Business Analytics Center at Georgia Tech brings together talented students, world-class interdisciplinary faculty to educate and exchange best practices for applying analytics to solve business problems.” Sri Narasimhan, Senior Associate Dean Source: www.scheller.gatech.edu/centers-initiatives/ business-analytics-center/ “Atlanta is a high-demand colocation market and a growing hub for healthcare, technology, and large enterprises.” Greg Friedman, Vice-President, zColo Source: “Zayo’s zColo Enters Atlanta Market With AtlantaNAP Acquisition,” DataCenterKnowledge.com, 07.02.2014 Georgia Universities Conferring 100+ IT Graduates Annually Estimated Fulltime Enrollment (FALL 2013) Total Number of Degrees Granted in IT-Related Fields – Bachelor's and Higher (2012) 4-Year Degree-Granting Universities Graduating 100 or More IT Professionals City Georgia Institute of Technology-Main Campus Atlanta 23,108 554 Georgia State University Atlanta 32,556 342 University of Georgia Athens 35,197 221 Kennesaw State University Kennesaw 25,714 215 DeVry University-Georgia Decatur 1,272 171 Southern Polytechnic State University Marietta 6,786 161 Total of Top 6 Graduating Schools 124,633 1,503 Total All Georgia Colleges and Universities 233,565 * 2,546 ** Georgia Tech Professor Yogendra Joshi, Woodruff School of Mechanical Engineering Source: Fall 2014 Enrollment Report, University System of Georgia Board of Regents; IPEDS 2013 Completions (latest available) *Includes approximate enrollment of all disciplines at Georgia schools offering IT programs including computer engineering as of 2013 **IT degrees includes computer and information sciences as well as computer engineering graduates Gary Meek Computer IT Degrees (Bachelors Degree or Higher) San Antonio San Francisco Dallas ATLANTA Boston Los Angeles New York 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Source: 2013 Completions, IPEDS, National Center for Education Statistics Note: Washington, D.C. not included because online university based there counts all graduates in the country and not at site. GEORGIA POWER COMMUNITY & ECONOMIC DEVELOPMENT – YOUR PARTNER IN BUSINESS © GEORGIA POWER, July 2015 7 Accessibility Atlanta is the most connected city to the domestic market and fifth-most to international markets. Metro Atlanta’s accessibility to major domestic and international markets is one of the key reasons so many corporations call the region home. Atlanta’s Hartsfield-Jackson International Airport offers unsurpassed non-stop access to 218 domestic and 72 international destinations. The airport is also the most traveled in the world. Atlanta is home to the world’s second largest air carrier, Delta Air Lines. World’s Most Efficient Airport (2014) World’s Most Traveled Airport (2014) #1 Most Domestic Non-Stop Markets Served (Among U.S. Airports) #5 Most International Non-Stop Markets Served (Among U.S. Airports) Source: Hartsfield-Jackson Atlanta International Airport, 2014; Air Transport Research Society, 2014; Airports Council International, 2014 GEORGIA POWER ECONOMIC DEVELOPMENT PROJECT MANAGERS – specializing in data center projects Georgia Power Economic Development’s full-service team includes top-notch expertise offered by five statewide project managers. Partnering with state and local agencies, Brenda Robbins and Kevin Lovelace specialize in IT and data center projects. Brenda Robbins Kevin Lovelace Brenda began her career with Southern Company in 1982 in the Information Systems division of Southern Company Services. Joining Georgia Power’s statewide projects team in 1996, Brenda brought a strong background in applications design and development, establishing data centers, and IT talent recruitment. Her extensive expertise and experience in working with data centers has contributed to the location of more than 25 data centers in Georgia. With a background in staffing and recruitment for Southern Company Services, Kevin joined Georgia Power’s economic development statewide projects team in 2002. Kevin has worked with dozens of technology companies from around the world. His experience with talent recruitment lends itself to understanding the staffing demands of mission-critical facilities. 404-506-3144, kmlovela@southernco.com 404-506-6617, bkrobbin@southernco.com Community & Economic Development 75 Fifth Street NW, Ste. 175, Atlanta, GA 30308 econdevga@southernco.com www.SelectGeorgia.com 7.8.15