Data Centers - Economic Development Corporation of Utah

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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
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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
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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
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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
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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
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UTAH DATA CENTERS
Number
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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
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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
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