Governments wishing to attract investment by data-centre providers must ensure key infrastructure is in place

"Given the long-term, capital-intensive nature of data centres, it is essential to create an overall environment that is stable and conducive to such investment."
Governments that wish to nurture a healthy Internet and technology ecosystem are placing increasing emphasis on attracting investment by data-centre operators and their users. Given the long-term, capital-intensive nature of data centres, it is essential to create an overall environment that is stable and conducive to such investment. This depends on two main factors. First, it is important for the overall business environment to be attractive, and the policy and regulatory environment to be progressive and non-restrictive. Second, certain pieces of key infrastructure must be in place at a high quality and an attractive price. In this article we focus on the infrastructure requirement, which has three key elements:
  • high-capacity domestic fibre connectivity
  • international connectivity
  • power.

High-capacity domestic fibre connectivity

Data centres are the hub locations of many networks, including the Internet, the networks of cloud service providers, and large-capacity corporate networks. Whilst the operator of the data centre does not necessarily require connectivity itself (although some operate in this space), its customers will certainly have very large connectivity needs. This means that a successful data centre can only be established where there is competitive access to large-capacity domestic connectivity – both high-capacity active connectivity services and passive infrastructure such as physical fibre and duct.
Originally posted on Analysys Mason. To read this post in its entirety, please click here. By Andrew Kloeden, Principal, Analysys Mason.