Choosing the right location for a data center is one of the most significant decisions a business can make. A strategic data center site selection process is not only about finding an available piece of land but also about considering multiple factors such as operational expenses, network latency, and disaster recovery.
In this article, Coolnet will outline 11 key data center site selection criteria. By considering these factors, you will make an informed and strategic choice for your data center site!
Picture shown: MetaRow-Modular Data Center
A Comprehensive List of Data Center Site Selection Criteria
1. Geographic Location
The basic data center location strategy is to consider proximity to end-users to minimize latency, and there is more to explore. It is recommended to assess the risk of natural disasters like earthquakes, hurricanes, floods, and wildfires by consulting historical data and geological maps. A location with a low risk of seismic activity, for instance, is far more desirable.
Additionally, political stability and local regulatory climates are also critical; a region with a history of political instability or unfavorable business laws can introduce significant operational risk.
2. Power Availability and Reliability
Data centers can consume a significant amount of power to operate. This means the location must have access to a stable, robust power grid with sufficient capacity to accommodate both present demands and future growth.
We recommend investigating the power utility’s infrastructure, including the number of substations and the history of power outages. Sites with access to multiple, redundant utility feeds (often called diverse power feeds) offer a much higher level of reliability.
When doing this investigation, you can also evaluate the cost of power, as it is a major operational expense.
3. Network Connectivity
The ideal site should have access to multiple fiber optic routes from different carriers. This provides a crucial layer of redundancy, preventing a single fiber cut from taking your facility offline.
Furthermore, proximity to major internet exchange points (IXPs) is highly beneficial, as it reduces latency and improves data transfer speeds. This criterion is fundamental for high-performance applications, cloud services, and any business that relies on rapid data exchange.
4. Physical Security
This involves a multi-layered approach to protecting the facility and its assets. The surrounding area should have low crime rates. Within the site itself, there should be comprehensive security measures, including robust perimeter fencing, 24/7 on-site security personnel, extensive video surveillance, and biometric access controls to limit entry to authorized personnel.
A well-secured location deters theft, vandalism, and unauthorized access, protecting your valuable data and hardware.
5. Environmental Controls
Proper heating, ventilation, and air conditioning (HVAC) systems are necessary to maintain optimal operating temperatures, and the external climate can have a significant impact.
A cooler, more temperate climate can dramatically reduce energy consumption and operational costs, while a hot or humid climate requires more powerful and energy-intensive cooling solutions.
In addition, you must consider the availability of water for cooling towers, as some systems are highly water-dependent.
6. Scalability and Space
Your data center needs will expand as your business grows. Therefore, it is important to select a site that offers ample space for future expansion, both in terms of physical building space and power/cooling capacity.
A modular design approach, which allows for the addition of new data center units or pods as needed, is a highly effective data center location strategy. This prevents the need for a costly and disruptive relocation down the line and ensures you can scale up your infrastructure on demand.
Picture shown: MetaRack Series All-In-One Micro Data Center Solution
7. Accessibility and Logistics
Given the fact that the data center can face potential disruptions, its location should be easily accessible for IT staff, maintenance teams, and equipment deliveries to help reduce losses. This means being close to major highways and, for some operations, airports.
Ease of access ensures that technicians can respond quickly to issues and that new hardware can be delivered and installed efficiently. This is especially important for emergency situations or planned maintenance.
8. Cost Considerations
This is a detailed analysis of the total cost of ownership (TCO). It includes not only the initial cost of land and construction but also ongoing operational expenses. These include the cost of power, local labor rates, property taxes, and government incentives or tax breaks.
A location with lower land costs but high power prices may not be as cost-effective in the long run as one with a higher initial investment but lower recurring utility costs.
9. Environmental Impact and Sustainability
Another important criterion for modern data center sites is sustainability consideration. This typically involves evaluating the availability of renewable energy sources in the area, such as solar, wind, or hydroelectric power.
It also means considering the facility’s Power Usage Effectiveness (PUE) and its water usage. Choosing a location that allows for the implementation of green technologies and practices can not only reduce your carbon footprint but also lead to significant long-term savings.
10. Compliance and Legal Factors
To avoid legal complications and fines, you should also do a thorough survey about local laws regarding data privacy, data sovereignty, and environmental regulations. For instance, there is GDPR (General Data Protection Regulation) for European data, HIPAA (Health Insurance Portability and Accountability Act) for healthcare information, and PCI DSS (Payment Card Industry Data Security Standard) for payment card data.
11. Risk Management and Disaster Recovery
This is a holistic assessment of all potential risks, from natural disasters to human error. Your data center site selection criteria should include a plan for disaster recovery. This can include secondary locations, backup power, and emergency protocols to maintain business continuity.
Coolnet’s Expertise in Data Center Solutions
Selecting the ideal site is only one part of the data center journey—the other is building it with the right technology partner. Coolnet, with more than 15 years of experience, has become a leader in delivering precision-engineered data center solutions.
Our expertise covers a full spectrum of needs, including advanced cooling strategies, modular data centers, and cutting-edge server rack power systems. This is backed by over 500 patents and certifications and supported by four national laboratories.
Whether for hyperscale facilities, enterprise centers, or edge computing clusters, Coolnet has successfully executed data center projects worldwide, ensuring that strategic site choices translate into resilient and future-ready operations.
Conclusion
Every successful data center begins with the right site, chosen through careful evaluation of key factors like power, connectivity, and scalability. These data center site selection criteria form the core of an effective data center location strategy.
If you need more professional advice for your next data center project, reach out to us—we would be glad to help turn your site into a reliable and future-proof operation!
References:
- https://blog.equinix.com/blog/2024/08/06/5-considerations-for-choosing-data-center-locations/
- https://www.techtarget.com/searchdatacenter/tip/Considerations-for-data-center-site-selection
- https://www.flexential.com/resources/blog/essential-considerations-effective-data-center-site-selection
