Hello,

We are interested in leading a cooperative of internet companies to build a new data center in New York City. Membership in the cooperative would allow members to consolidate the costs of building and maintaining a data center, therefore lowering the costs associated with co-locating servers. Members buy in to the cooperative by paying a fee to share the costs of installing things such as false flooring, racks, generators, HVAC systems, fire suppression, and security systems. A monthly due is paid to maintain the office lease, telecommunication fees, utility bills, and security staff. If you have a large number of servers, or plan on expanding, joining a cooperative may save you a large deal of money.

How does such a data center cooperative sound?

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BQ Internet Corporation

How does such a data center cooperative sound?


A lot of hassle TBH!

if you go for it, get those contracts airtight ;)

Cheers,

sounds like a lot of work :)
and a lot of members needed for financing ;)

Buy a bankrupt datacenter. Alot of problems solved....and money.

It's cheaper, easier and most times better to buy a closed/bankrupt datacenter than it is to build one. There are empty datacenters all over the country for pennies on the dollar.

Pennies on the dollar, eh? Where would one look for such data centers?

In my opinion, there is no way to financially justify a NYC data center. The leasing costs would just appear to be prohibitive compared to other options. And, you would have to compete with those who have cheaper rent.

Maybe I'm missing something...if so, please enlighten.

move to northern Virginia we have empty datacenters all over the place.. there is actully one right across the street from qwest.. i could stand in qwests parking lot and throw a baseball and hit the side of the datacenter building... no joke .. heres the link http://www.datacentersnow.com/cyber1.html of course it really doesn't look that pretty.. i'll grab some pics of it the next time i goto the colo to verio :)

Pennies on the dollar, eh? Where would one look for such data centers?St. Louis for one. There are 3 dark DCs that I know of and you could probably pick them up for 10% of what they cost to build.

Buy a bankrupt datacenter. Alot of problems solved....and money. That's what we did...for about a penny on the dollar. :D

Brandon

Originally posted by cbtrussell
That's what we did...for about a penny on the dollar. :D

Brandon

Who's "we"?

Here is a page w/ some datacenters....not sure how accurate it is thou but worth a try if your looking for one.
http://www.datacenterexchange.com/index.shtml

Sorry, penny of the dollar, what sort of range are you talking about here? thousands? hundreds thousands? millions?

Thank you

Ben

Who's "we"? Not sure why this is important to you nor why you're asking? Similar to the original post above, my company partnered with two other firms to secure a liquidated DC. While the financial/legal details changed quite often during the course of the deal, the end result has been a tremendous win for all parties involved.

Sorry, penny of the dollar, what sort of range are you talking about here? thousands? hundreds thousands? millions? Well, I'd put the original DC buildout in the $5MM range (our DC is not huge, mind you... but certainly big enough for us.) The deal itself was fairly complex, but in the end we have a robust DC with a significant amount of infrastructure for a very low percentage of what it would've cost to build ourselves. That's about all the detail I can provide.

Brandon

Just curious as to which hosting company needs and is able to afford their own datacenter =).

Oh, no problem there. We're looking to leverage the new DC as a means to offer an extensive product mix in the immediate short term, and specifically plan to offer some extremely cost effective (yet high value) colocation options very, very soon. Feel free to PM me if you're curious, as it's too early (and the wrong forum :) ) to post details publically.

Brandon

I dont think you could have came up with a worse idea.

NYC is a great location, although expensive. Location makes up for it. This basically sounds like you want to be a colo provider, but dont want to front the cost yourself. Do you know how hard it would be just to track who gets what. Say Company A, donates 20k for the cooperative, and B, donates 2k. A obviously would get more space available to them, than B, but in theory, they are both owners. Who says that company B should have paid for HVAC that Company A will primarily be using. Etc. Terrible idea, IMHO.

Buying colocation space is easy and cheap enough these days. Its way cheaper just to get cabinets/racks as you go than to get your own space that you "own". It would be a nightmare. Terrible.