Data Center Industry Profile Data center images are used with permission by C7 Data Centers, www.c7dc.com Utah 2014 Utah Data Center Industry DATA CENTER INDUSTRY OVERVIEW Utah has a long and distinguished history in the high-tech industry. Utah’s well-developed information technology industry includes such major employers as Adobe, Novell and L3 Communications. Oracle, another major player in Utah’s hightech industry, operates a 4,000-server datacenter for world-wide product and operations support. Siebel Systems, a recent relocation to the state, has successfully relocated many of its senior IT staff from California to Utah. UTAH DATA CENTER STRENGTHS Strong Infrastructure Utah has 18 centers in operation for regional and national companies including disaster recovery and hot back-up sites. The Wasatch Front sits astride a major east-west line of the Internet “backbone,” with 10 major service providers delivering high-speed services to the area. Isolated geographically from both east and west coasts, Utah provides higher overall security and less vulnerability to attacks and natural disasters. Utah has a low incidence of large-scale natural disasters, including tornados, hurricanes and floods. The Wasatch Front is located in Seismic Zone 3, which has a low frequency of occurrence. UTAH DATA CENTERS MAP Source: edcUTAH, Individual company websites ECONOMIC DEVELOPMENT CORPORATION OF UTAH 06/30/2014 1 RECENT NEWS & ANNOUNCEMENTS C7 Data Centers – In October 2013, Granite Point II launched a new 95,000-square-foot data center complex in Bluffdale. The site has 70,000 feet of raised floor space and is designed for 10 megawatts. The data center also has 25,000 square feet of office space to accommodate the high rate of out-of-state customers the company attracts. While the Utah market is typically seen as a disaster recovery hot spot, C7 says it is unique in that it attracts a high percentage of production customers. “Seventy five to 80 percent of our customers are out of state, and 80 percent of that is production,” said Wes Swenson, CEO of C7. Swenson gives several reasons why Utah should be at the top of the list for data center space, and not just for disaster recovery, but for production. “We get great operational efficiency,” he said. “The biggest differentiator is that we are in Utah, the lowest disaster rates in the United States. It’s at a higher elevation, it sits in what they call a cold desert. We’re able to use ambient air almost nine months out of the year. We also have some of the lowest power pricing per capita at 35 cents per kilowatt – tremendous power pricing.”1 eBay – Upon accepting an incentive from the State of Utah, eBay announced plans to build a major new data center in South Jordan. The center will allow eBay to deliver improved capabilities to its hundreds of millions of users across its many websites. Since completion in 2010, this project has generated more than $330 million in capital investment for the state. Oracle Corporation – Oracle is bringing 351 high-paying jobs to Utah. "We have been impressed by the high-tech growth in Utah, and we’re pleased to be expanding our presence here," said Randy Smith, Oracle’s vice president of real estate and facilities. "The state offers a unique blend of potential economic growth as well as a highly skilled workforce," he added, noting that Oracle already has a data center in West Jordan. "The opportunities in Utah are very clear. It’s the right place for us to grow." Oracle also could make a capital investment of up to $6.1 million in the facility.2 Voonami, LLC – With one newly opened data center located in Orem, Voonami has announced plans to build a two more Utah data centers, one in Sandy and another in Utah County. Each new data center will house up to 100,000 square feet, with a power capacity of 300 watts per square foot. The new data centers are part of a broader, adaptive computing ecosystem the company is calling adaptive computing data centers. National Security Agency (NSA) – After being chosen over more than 30 other sites in the Unites States in July 2009, the groundbreaking for one of the largest military construction project in recent memory was commenced in January 2011. Once completed, this data center will support up to 700 permanent employees. Sen. Orrin Hatch said it was Utah’s favorable energy costs, Internet infrastructure, thriving software industry and proximity to the Salt Lake City International Airport that earned Camp Williams the data center, which is a $1.5 billion dollar capital investment. Mozy by EMC Corporation – Because of the vast need to expand, Mozy chose Utah for its favorable industry for data facilities. Mozy backs business and personal users alike to protect files remotely. This multimillion dollar online backup service, backed by the fortune 500 company, EMC under DECHO Corporation chose Pleasant Grove for its data support center. Recently completed, this $2.2 million dollar investment currently sustains 90 employees. Additionally, many companies, including Adobe and the Royal Bank of Scotland have found a reliable source in Utah for their facilities with data center components. The amenities presented in Utah facilities offer up-to-date technology to prevent damages from natural disasters or security breaches. Because strict operational precautions and procedures are maintained, operating costs are kept at a minimum, apart from the already low energy costs in the state. INFRASTRUCTURE Internet “Backbone” The term Internet “backbone” was once used to describe the central network that linked all parts of the Internet together. Today, the term loosely describes the core of the current Internet. The image below shows the location of the larger networks 1 Source: Data Center Knowledge, 2013. 2 Source: Salt Lake Tribune 2 06/30/2014 UTAH DATA CENTER INDUSTRY that inter-connect with each other and serve individual, local ISPs (Internet Service Providers) as clients. The local ISPs connect to one of the larger networks and are then able to provide nationwide and worldwide connections. Salt Lake City is in a fortunate geographic location sitting astride the major east-west Internet corridor The Utah Broadband Project3 The Utah Broadband Project is a joint effort between the Governor’s Office of Economic Development, the Public Service Commission and the Department of Technology Services’ Automated Geographic Reference Center to develop a statewide map of available broadband services and a plan to increase broadband adoption and deployment in the state. The project will help identify critical unserved and underserved areas and populations. This information will help in the development of a statewide plan to expand affordable, reliable broadband services to every citizen of the state. broadband.utah.gov FatPipe Networks4 FatPipe Networks creates new technology that provides the highest levels of optimization, reliability, security and acceleration of WANs. This company creates WAN redundancy technology, router clustering, which allows companies automatic failover of a downed data line connection due to a WAN component or service failure. www.fatpipeinc.com iProvo5 The city of Provo owns the infrastructure that assures fiber accessibility to every resident and business in Provo. Private businesses are able to lease the system to deliver voice, video and Internet via high-speed capacity fiber through the network. The iProvo system is being built using public investment in the infrastructure as a means to offer competitive, advanced telecommunications services to the private sector. www.iprovo.net 3 Source: Utah Broadband Project FatPipe Networks, Inc. 5 Source: iProvo 4 Source: ECONOMIC DEVELOPMENT CORPORATION OF UTAH 06/30/2014 3 Qwest Communications (CenturyLink)6 Qwest Communications (now merged with CenturyLink) provides its services to roughly 20% of Utah’s land areas, which equates to approximately 90% of the state’s population. Qwest offers a complete package of broadband communications products and services. Such data and IP services include VoIP, VPN (virtual private network), remote access and dedicated Internet connectivity and private IP networking. Qwest also delivers all-digital wireless voice and data services, wireless data features and picture and video mail features. www.centurylink.com SFCN (Spanish Fork Community Network)7 The city of Spanish Fork is currently installing new infrastructure consisting of both coax and fiber optic cables to offer new and enhanced services to its residents and businesses. Initially, the SFCN will offer some services through a wireless radio network. Eventually, a coax or fiber optic cable will be run to each home in Spanish Fork. www.sfcn.org Utah InterLinx8 Utah Interlinx has built a redundant network connection through Southern Utah after the only fiber optic line connecting Southern and Northern Utah was cut during the spring of 2004. Utah Interlinx decided to pull fiber optic cables together to connect into a fiber route for the western states that crosses near Gunlock. From this location, data can travel north to Salt Lake City or West to Las Vegas, Los Angeles and Portland, or a number of other points. Utah Interlinx now offers services to the more rural Utah areas with more than 150 miles of high-capacity, high bandwidth fiber optic cable in the southwestern region of the state. www.interlinxcomm.net UTOPIA (Utah Telecommunication Open Infrastructure Agency)9 Utah’s UTOPIA project, an open, shared infrastructure, leads the way in providing user access to the largest municipal fiber-optic project in the country. UTOPIA provides ultra-broadband, dedicated fiber connection to homes and businesses within 14 cities along the Wasatch Front. Redundant fiber connections are installed where needed. Services on the network are offered by a number of private communications companies. www.utopianet.org XMISSION10 XMISSION provides Internet services to the Wasatch Front and communities throughout the state. XMISSION has teamed up with UTOPIA as a provider on the Community MetroNet. XMISSION offers web hosting, data center services and a dedicated connection for 24-hour access to the Internet. www.xmission.com LABOR With Utah’s high enrollments in public and private colleges and universities, the state is producing highly educated and highly skilled graduates, creating a pool of skilled workers. Current estimates show there are more than 2,600 IT and life science companies operating in the state of Utah, providing over 40,000 high paying jobs with average salaries 58% higher than the state average wage.11 Full-Time Enrollment & IT Graduates Institution Name Location Public / Private 2013 Total Enrollment 2012-13 IT Graduates Provo Private 30,243 195 St. George Public 8,147 46 LDS Business College (LDSBC) Salt Lake City Private 1,864 5 Salt Lake Community College (SLCC) Salt Lake City Public 35,043 110 Brigham Young University (BYU) Dixie State College (DSC) 6 Source: Qwest Corporate Communications Source: SFCN 8 Source: Utah Interlinx 9 Source: UTOPIA 10 Source: Hoover’s, Bureau of Labor Statistics May 2013 11 Source: Utah Technology Council, Utah Department of Workforce Services 7 4 06/30/2014 UTAH DATA CENTER INDUSTRY Snow College (SNOW) Ephraim Public 4,581 10 Cedar City Public 8,227 15 Salt Lake City Public 36,226 166 Utah State University (USU) Logan Public 28,698 150 Utah Valley University (UVU) Orem Public 30,880 199 Weber State University (WSU) Ogden Public 25,886 190 Westminster College (WC) Salt Lake City Private 3,163 10 TOTAL Source: Utah Board of Regents UTAH - 212,958 1,096 Southern Utah University (SUU) University of Utah (U of U) Neumont University12 Neumont University, which aims to educate the most sought-after software developers in the world, began with its first freshman class in 2004. This private university offers accelerated bachelor’s and master’s degree programs, allowing students to graduate and earn a degree in as little as 28 months. Other Universities and Colleges of Note Several other schools have a strong presence in the state of Utah. The following lists schools in the state that offer additional programs and degrees in computer science. These schools are important to recognize because they graduate hundreds of students a year in Utah. Utah Applied Technology College (eight ATC campuses statewide) Western Governor’s University ITT Technical Institute Stevens-Henager College University of Phoenix BUSINESS COSTS Wage Data 2013 Title of Position (SOC Code) Nation State of Utah Utah as % of National Cost Computer & Information Systems Managers (11-3021) $132,570 $116,260 -14.03% Computer and Information Research Scientists (15-1111) $109,260 $83,630 -30.65% Computer Systems Analysts (15-1121) $85,320 $73,400 -16.24% Computer Programmers (15-1131) $80,930 $76,290 -6.08% Software Developers, Applications (15-1132) $96,260 $86,030 -11.89% Software Developers, Systems Software (15-1133) $104,480 $91,760 -13.86% Web Developers (15-1134) $67,540 $56,370 -19.82% $80,740 $78,540 -2.80% Database Administrators (15-1141) Source: Bureau of Labor Statistics, May 2013 Cost Comparison Model EDCUtah can run a cost comparison model that enables a company to compare a Utah location with other select locations when considering a relocation or expansion. Please contact EDCUtah for more information. 12 Source: Neumont University ECONOMIC DEVELOPMENT CORPORATION OF UTAH 06/30/2014 5 UTAH DATA CENTERS Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Company Name & Address Phone Number & Website Address Contact Person Blue Lock, LLC Salt Lake City, Utah (888) 402-2583 http://www.bluelock.com/ Christopher Clapp President & Chief Executive Officer info@bluelock.com (801) 822-5300 http://www.c7dc.com/facilities/ Wes Swenson Chief Executive Officer Center 7, Inc. 357 S. 670 West, Suite 100 Lindon, Utah 84042 ViaWest Internet Services 180 E. 100 South Salt Lake City, Utah 84111 Fibernet 1145 S. 800 East Orem, Utah 84097 Oracle Corporation 9350 S. 150 East #600 Sandy, Utah 84070 ViaWest Internet Services 3949 S. 200 East Murray, Utah 84107 C7 Data Centers 703 E. Technology Ave., Building E, Suite 1300 Orem, Utah 84097 C7 Data Centers 179 Social Hall Ave. Salt Lake City, Utah 84111 University of Utah Data Center 50 North Medical Dr. Salt Lake City, Utah 84132 ViaWest Internet Services 30 E. Broadway, Suite 200 Salt Lake City, Utah 84111 Voonami, LLC 510 E. Technology Ave., Building C, Suite 1100 Orem, Utah 84097 Voonami, LLC 2302 S. Presidents Dr., Lincoln Bldg West Valley City, Utah 84120 WestHost, Inc. 517 W. 100 North, Suite 225 Providence, Utah 84332 C7 Data Centers 14944 Pony Express Dr. Bluffdale, Utah 84332 eBay Data Center 583 W. eBay Way Draper, UT 84020 Tonaquint Data Center 1108 W. 1600 South St George, Utah 84770 Mozy Data Center 2162 Grove Parkway Suite 200 Pleasant Grove, Utah 84062 Omniture, Inc. 3900 Adobe Way Lehi, UT 84043 (801) 617-2990 http://www.viawest.net (801) 223-9939 http://www.fiber.net Daniel Milburn President dmilburn@consonus.com Erica Wilkinson Corporate Sales ewilkinson@fiber.net (801) 561-0286 http://www.oracle.com Safra Catz President (801) 265-1035 http://www.viawest.com/data-centers/utah Steven Dunn President (801) 494-8400 http://www.c7dc.com/facilities/ Jeff Swain VP Sales sales@c7dc.com (801) 494-8400 http://www.c7dc.com/facilities/ (801) 587-6100 https://www.chpc.utah.edu/ Jeff Swain VP Sales sales@c7dc.com Mike Morgan Manager mike.morgan@hsc.utah.edu (801) 994-0761 http://www.viawest.net Chris Kenney Utah Vice President & General Manager (801) 995-4000 http://www.voonami.com Kelly Sawyer (No Kelly) Director of Sales & Marketing ksawyer@voonami.com (801) 995-4000 http://www.voonami.com Kelly Sawyer Director of Sales & Marketing ksawyer@voonami.com (435) 755-3433 http://www.westhost.com/ (801) 822-5303 http://www.c7dc.com/facilities/ (801) 619-2400 http://www.ebay.com/ (435) 628-6164 http://www.tonaquintdc.com/ (801) 756-2331 http://www.decho.com/ (801) 722-7000 http://www.omniture.com/ Brian Chambers Vice President of Operations bchambers@westhost.com Jeff Swain VP Sales sales@c7dc.com Scott Newman (Cannot Find Scott) Branch Manager Matt Hamlin CEO matt@tonaquintdc.com Russ Stockdale General Manager press@mozy.com Brad Rencher Senior Vice President Sources: InfoUSA, Individual company websites, Dun & Bradstreet 6 06/30/2014 UTAH DATA CENTER INDUSTRY ECONOMIC DEVELOPMENT CORPORATION OF UTAH The Economic Development Corporation of Utah (EDCUtah) is a private, statewide, non-profit organization formed in 1987 to provide a unified and professionally managed economic development program promoting the state of Utah. EDCUtah is an investor-based organization with more than 270 private sector businesses, organizations, chambers of commerce, municipalities and counties. Through these partnerships, EDCUtah facilitates an ongoing effort to develop and nurture a thriving business climate throughout Utah. EDCUtah specializes in assisting companies considering Utah for a business relocation or expansion. The Business Development team of EDCUtah coordinates all of the information key decision makers and economic development/site consultants need as they evaluate Utah as a site location. FOR ADDITIONAL INFORMATION Economic Development Corporation of Utah 201 S. Main St., Suite 2150 Salt Lake City, Utah 84111 Phone (801) 328-8824 Fax (801) 531-1460 www.EDCUtah.org ECONOMIC DEVELOPMENT CORPORATION OF UTAH 06/30/2014 7