Data Centers as a Crisis Investment Option

Today, we are witnessing yet another technological breakthrough. The technology of artificial intelligence has already been invented and is actively developing, robots are participating in the operations of enterprises, data is being transmitted via 5G technology at maximum speeds, and the number of mobile subscribers has surpassed 4 billion. More than half of them use smartphones. The amount of information in video format is growing incredibly, and thanks to Ultra HD television technology, television traffic has doubled. The level of security in recent years is equally impressive. Just imagine, almost every person on earth is now visible, thanks to hundreds of millions of cameras broadcasting information every second. But what is most astonishing is the internet – every one and a half to two years, the amount of information on the World Wide Web doubles.

Among internet users, there is an increasing number who visit their favorite websites using mobile gadgets. Last year, traffic from smartphones and tablets amounted to 1.6 zettabytes. This is 10 times more compared to 2016. If you are not aware, 1.6 zettabytes is equivalent to 1.5 trillion gigabytes. To generate that amount of information, you would need to upload 4.5 trillion average-length videos or write 940 quadrillion text messages.

Of course, ensuring such results requires ultra-modern computing power and constant improvement in data storage technologies. These problems have long been solved, but the capabilities of data centers have not yet kept pace with the overall development. Thus, data centers are currently a promising niche for development and profit in the internet technology market.

There are approximately 2,500 data centers in the United States today. Their number is increasing annually by 10-15%. Experts from the Edge Data Center Market have estimated that their total value was about $4 billion in 2018. Given current trends, this will only grow, reaching $13 billion by 2024. Just think about it – $9 billion in just six years!

The number of data centers is growing regardless of crises and fluctuations in stock prices. This is a stable business that does not imply the likelihood of any unforeseen financial losses.

Who Needs Data Centers?

Several types of consumers are interested in data centers.

• Wholesalers, large corporations like Microsoft or Facebook. They can buy data centers in very large quantities, with the main criteria for selection being power supply and space.
• Medium-sized enterprises. They purchase data centers with infrastructure included. After buying, they install their own equipment for operation.
• Small businesses. Typically, they only need a couple of racks and equipment provided by the data center owner.

For a large company, it is simpler and more cost-effective to buy an already functioning data center than to create one from scratch. However, for medium and small companies, this is economically unfeasible and makes little sense. It is a labor-intensive process requiring specialized knowledge. By purchasing ready-made data centers, companies increase their turnover and raise their own value. By renting data centers or racks in data centers, a company increases its information storage capabilities.

How Are Data Centers Created?

If you think that millions are needed for this, don't worry. You won’t have to build high-rise buildings or invest astronomical sums. If you want to create a data center, you can do so in just 100 square meters, renting the space. The rent will be low since comfort is not required. A utility room or any other space without furniture, designer interiors, or even windows will suffice – all of this does not matter for a data center. Here’s what you will really need:

• a lot of electricity to power hundreds and thousands of servers;
• broadband internet;
• backup generators in case of power outages;
• quality air conditioning for constant and efficient cooling of systems.

Today, data centers are located in American business centers, skyscrapers, and even shopping malls. When the Twin Towers existed, destroyed in a notorious terrorist act, they also housed several large data centers. If they had been moved to a single building and placed in adjacent offices, they would have occupied 20 floors together.

So how much money will be needed, you might ask? Let's answer this by considering just the rental of the premises. First, let’s imagine what it would look like. There is a rack on one square meter. It holds 40 servers. One server can be rented out to a customer for $100-250 per month. By doing some simple calculations, we find that this yields between $2,000 and $10,000 per month from one square meter of space! Now let’s think together about what other business could provide you with such income. It’s hard to recall any! Such a business simply does not exist!

Of course, this is not pure profit, and some capital investment will still be required. This includes purchasing servers, racks, air conditioners, the initial rent for the existence of the center, and wiring for electricity and internet. Additionally, a team of administrators will be needed unless you and your team have the necessary knowledge and skills.

Purchasing equipment, selecting a team of specialists, and setting up will take time. But this investment will pay off fully as soon as you find your first clients.

The advantage of a data center as a business is that it is scalable. It can be small, just 100 square meters, or it can occupy 2,000 square meters and bring in 20 times more money than the one we discussed in detail. You can create a small data center and gradually scale up, increasing your team and profits. It all depends on the number of clients, the professionalism of the team, your personal desire to grow, and many other factors.

Technical Details

So, let's talk in more detail about the process of creating a data center. Some companies do it this way:

• They select the optimal building;
• They equip it with everything necessary;
• They pre-allocate data center resources among customers;
• They connect internet providers;
• They open a NOC (Network Operations Center);
• They purchase the required number of servers.

Servers require the largest expenditures. New ones cost on average from three to ten thousand dollars. However, used servers can be bought for about a hundred dollars each. The age of the servers does not matter to clients; they benefit from their performance. When purchasing, you need to check their functionality.

To open a data center in the USA, servers are the only issue you will need to handle yourself. We will take care of the rest. Our specialists will find a building or space for you at a favorable price with the required square footage and ventilation, arrange the purchase of racks, set up utilities, and select the staff. You will just reap the rewards of our joint efforts.

What will you need to create a data center in the USA?

1. A building. In the USA, most buildings meet the technical requirements for data center operations. They have good ventilation and continuously operating air conditioning systems. Such spaces can be found in almost any district of a large city.
2. Racks. Racks are available in 40, 42, and 45-unit sizes. Each rack integrates PDU (Power Distribution Units).
3. Internet providers. To start working with a provider, the first step is to negotiate, which we will handle for you. The company will install the equipment and provide you with internet access in just a few days.
4. A team of specialists. We will select high-level professionals with experience to ensure the uninterrupted operation of your business. These include cooling and power technicians, server equipment specialists, and engineers for server and networking equipment. It's important that technicians can arrive at the data center within minutes, so we only select those who live nearby. The choice of engineers depends on client requirements.

Be sure to arrange workspaces for the staff. If for some reason the data center does not occupy the entire space, it can be temporarily leased for offices until it’s time to expand. The best option is to rent space to IT companies, but even if other types of businesses occupy it, you will still earn income from the unused space. At the very least, you will recoup the costs you pay for using those square meters.

Why do you need us?

Our team offers an entirely new concept for creating and maintaining data centers. It organically combines Western reliability with Eastern European infrastructure. For over 15 years, we have been working with data centers in the USA and Europe, collaborating with experienced engineers from various countries.

Errors you definitely won't make with us

• Choosing the wrong location. Before creating a data center, many factors must be considered. This includes proximity to internet providers, expansion possibilities, and the reliability of power supply. We will take care of all the details for you and ensure there are no unpleasant surprises.
• Having overly important neighbors. One of our clients had already established a data center in a building shared with several government agencies. Everything was going great until one day, the power supply was interrupted. Any government agency takes precedence in power supply from backup generators. Therefore, during an emergency, all the electricity went to the government agency, leaving the data center and other offices without power. The consequences are easy to imagine.
• Hiring incompetent staff. Important and sometimes confidential information will be managed daily by your engineers and technicians. To keep it secure, a coordinated and efficient team is needed. It’s important to select not only honest but also experienced and competent staff. We will choose worthy candidates for you and filter out those who have not yet acquired the necessary knowledge.
• Lack of licenses and insurance. You need to anticipate the risk of property loss due to natural disasters and other factors beyond your control. This is even more crucial the more information you have on your servers, as it often affects clients' well-being. Insurance will help mitigate losses, which we will arrange for you with a reliable American insurer. It will cover the expenses you incur in restoring your business.

How we work

We help create data centers in the USA, providing full support for your business and assistance in difficult situations. We will be with you at every stage, from developing the business plan to signing contracts with clients. We will detail all the steps below.

Preparation

We will take care of:

• creating a business plan;
• choosing a realtor who will offer you a suitable location;
• selecting a site from the realtor's offers;
• finding consumer companies;
• attracting experienced sales managers for your services with their own client base;
• developing your brand and promoting it in the market;
• selecting personnel for preparing the premises, installing and servicing equipment, daily operations, etc.;
• drafting agreements with employees in strict accordance with US labor laws;
• formulating requirements for engineers and selecting them;
• providing legal support for contracts with the recipients of your data center services.

Data Center Installation

At this stage, we will also be with you. Our specialists will:

• develop the design and layout of the data center, including the installation of racks, servers, and network devices;
• build a structured cabling system;
• install power systems;
• configure and test all equipment;
• prepare the necessary documentation;
• train the service personnel.

Daily Operations and Business Development

While you serve your clients, we will take care of other equally important tasks:

• gather feedback on service quality;
• organize periodic meetings for you and the management of client companies, and conduct important events;
• develop marketing strategies for the active growth of your business.

Sale of the Data Center

Once the data center is operational, it becomes a favorable time for its sale. This step, taken with our help, will yield profits that far exceed even the largest expenses. Here's some information to consider: in 2017, deals for the sale of data centers totaled $20 billion. There were only 48 such deals. This means the average price of a single data center sold was over $416 million! Do you think it's worth doing the work we described above for just one such deal? Probably yes, it is!

We have more impressive data. In 2016, 28 deals were made for $10 billion (an average of $357 million each), and in 2015, 17 deals for $5 billion (averaging $294 million each). Thus, you can see that the value of data centers is increasing every year, which means your future wealth will also grow.

What exactly do we offer?

In partnership with AV5 and with its technical support, we offer you a promising investment that will bring you a fortune in a few years. We will be with you during the creation, development, and sale of your data center:

• we will create and register the company, open bank accounts, and arrange visas;
• we will develop a unique marketing plan and outline the stages of business growth;
• we will design a technical project;
• we will select a team of engineers with the direct involvement of AV5 experts;
• we will create an original brand;
• we will build your data center;
• we will find clients;
• we will provide support for your customers through AV5;
• we will prepare the business for sale;
• we will find a buyer who will make you the most favorable offer;
• we will support the transaction and document it in accordance with US laws.

As you can see, there is a lot of work to be done. But with a professional who has experience and connections in the USA by your side, you are guaranteed to succeed. Contact us today to learn about service costs and business startup options.