Planned Data Center Construction in the DMV
Data centers have become the backbone of our digital world, storing and managing vast amounts of data generated by individuals, businesses and governments. As of the publication of this article, approximately 402.74 million terabytes of data are created each day.
The Washington, D.C., Maryland, and Virginia (DMV) area, in particular, has seen a significant concentration of these facilities. This region, often referred to as “Data Center Alley,” is one of the most critical hubs for data centers in the United States. Understanding why this area has become a hotspot for data centers involves looking at the unique combination of government demand, private sector investment and ideal site conditions that the DMV offers.
It’s nearly impossible to overstate the importance of data centers. Increasingly, personal data is stored in cloud environments, which are a bit of a misnomer because the “cloud” very much exists in myriad data centers of all shapes, sizes and locations. With the digitization of data come vulnerabilitie, since hackers target and hold for ransom companies’ user data, and when multiple massive institutions utilize the same data centers or servers for storage, huge groups of people can have their information and/or systems at risk. Look no further than the Equifax data breach and the recent Crowdstrike outage. As such, many companies which can foot the bill choose to build and manage their own, in-house data centers instead of relying on external providers.
In this article, we’ll explore the reasons behind the high concentration of data centers in the DMV area, the factors that make it an attractive location for these facilities and the specific components and costs involved in their construction. We’ll also delve into how developers and contractors can find the right data center project leads and connect with decision-makers using BuildCentral, as well as highlight some of the major companies that have established data centers in the region.
Why Are There So Many Data Centers in Washington, D.C., Maryland and Virginia?
The Role of the Government in Data Center Construction
The primary reason for the high concentration of data centers in the DMV area is the substantial demand from the federal government. The government requires significant data storage and processing capabilities to support various agencies’ operations, including defense, intelligence, healthcare and public services. These agencies handle massive amounts of sensitive and critical data, necessitating robust and secure data center infrastructures.
According to a report by Data Center Frontier, the federal government is one of the largest consumers of data center space. Government agencies rely on data centers for tasks ranging from national security to administrative functions, driving the need for state-of-the-art facilities close to the nation’s capital. Additionally, government policies and initiatives, such as the Federal Data Center Optimization Initiative (DCOI), further emphasize the importance of maintaining efficient and secure data centers.
Public Companies with Data Centers in the DMV
Several public companies have established data centers in the DMV area, often due to their close collaboration with the federal government. These companies provide the necessary infrastructure and services to support government operations while also catering to private sector needs. Some of the major players include:
- Amazon Web Services (AWS): AWS has a significant presence in the DMV area, offering cloud services to government agencies through its AWS GovCloud (US) regions.
- Google: Google operates data centers that support both public and private sector clients, emphasizing security and efficiency.
- Meta: Meta has completed three data centers in the DMV in the last five years, highlighting its investment in the region.
- Microsoft: Microsoft Azure provides cloud services to federal and local governments, leveraging its data centers in the area.
These companies choose the DMV region not only for its proximity to their government clients but also for the strategic advantages the location offers.
What Makes a Good Data Center Site Location?
Here are some factors that make an area a good location for data center construction:
- Proximity to Major Markets: The best data center site locations should be close to major markets and metro areas where there is a more advanced power grid.
- Access to Reliable Power Supply: A good location offers a stable and abundant power supply, essential for the continuous operation of data centers.
- Fiber Optic Connectivity: High-speed fiber optic networks ensure low-latency connections, critical for data-intensive operations.
- Climate and Environmental Factors: The climate is conducive to efficient cooling solutions, reducing operational costs.
- Regulatory Environment: A potential data center’s region’s regulatory framework should support the development and operation of data centers, with incentives and policies that favor such investments.
Understanding these factors helps explain the details that make for a good data center site and why the DMV area has become a hub for data centers, driven by both government and private sector demand. If you’re looking to filter your project searches with these or similar characteristics, BuildCentral is here for you. Our users filter their project searches with some of these characteristics.
The data center construction market is not one set to dry up any time soon. In January 2023, McKinsey & Company projected the industry would grow 10% a year through 2030, with global spending on the construction of new facilities hitting $49 billion. The data we produce and utilize has grown at a phenomenal pace – by 2025 we will be storing 160 zettabytes a year, much of it in the cloud. Like matter, once created, data usually lives in physical data centers (as opposed to “cloud”-like spaces). New, data-intensive companies will continue to proliferate, especially with the advent of and major investment in Artificial Intelligence. With soaring demand for data centers, pressure will be put on construction professionals to build and maintain these facilities.
Why Are Data Centers So Expensive to Build and Maintain?
Building a data center is a complex and costly endeavor due to several factors that contribute to its high expenses. These costs arise from the need for advanced infrastructure, stringent security measures, redundancy and reliability requirements and the integration of sophisticated cooling and energy-efficient systems.
Infrastructure Requirements
Data centers require a substantial investment in infrastructure, including state-of-the-art facilities, robust electrical systems and high-performance computing equipment. The construction of the physical building must adhere to rigorous standards to ensure durability, security and the ability to support heavy equipment. Specialized materials and construction techniques are often necessary to meet these standards, significantly increasing the overall cost.
- Related: Infrastructure Project Data: Your Key to More Business
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Security Measures
Given the sensitive nature of the data stored and processed in data centers, security is a top priority. Implementing comprehensive security measures involves substantial expenses. These measures include physical security (such as perimeter fencing, surveillance cameras and access control systems), cybersecurity (such as firewalls, encryption and intrusion detection systems) and disaster recovery solutions. Ensuring the protection of data from both physical and cyber threats requires continuous investment in cutting-edge security technologies and protocols.
Redundancy and Reliability
To guarantee continuous operation and avoid downtime, data centers must incorporate redundancy and reliability features. This includes redundant power supplies, backup generators and uninterruptible power supply (UPS) systems to ensure that the data center remains operational even during power outages. Additionally, redundant networking equipment and pathways are necessary to maintain connectivity. Achieving high levels of redundancy and reliability requires significant capital investment in equipment and infrastructure.
Advanced Cooling Systems
Data centers generate a substantial amount of heat due to the high density of computing equipment. A large center can produce 20-50 MW of heat, while a data center campus can generate up to 300 MW of heat, enough to power a mid-sized city. Efficient cooling systems are essential to maintain optimal operating temperatures and prevent overheating, which can damage equipment and disrupt operations. Advanced cooling solutions, such as liquid cooling, air conditioning and economizer systems, are costly to install and maintain. These systems must be designed to handle the specific cooling requirements of the data center while minimizing energy consumption.
Energy Efficiency
Energy efficiency is a critical consideration for data centers, as they consume vast amounts of electricity. Implementing energy-efficient technologies and practices can help reduce operational costs and environmental impact. However, the initial investment in energy-efficient infrastructure, such as high-efficiency power distribution units (PDUs), energy management systems and green building certifications, can be substantial.
Most Expensive Components of Data Centers
Electrical Systems
Electrical systems are one of the most significant cost drivers in data center construction. This includes the installation of high-capacity transformers, switchgear, UPS systems and backup generators. Professions involved in this component include electrical engineers, electricians and other contractors, who are responsible for the design, installation and maintenance of these systems.
Cooling Systems
Cooling systems are another major expense, involving the installation of HVAC systems, chillers, cooling towers and liquid cooling solutions. HVAC engineers and technicians play a crucial role in manufacturing, distributing, installing and maintaining these systems to ensure efficient and reliable cooling.
Networking Equipment
Networking equipment, such as routers, switches and fiber optic cables, is essential for data center connectivity and performance. Network engineers and IT specialists are responsible for designing, setting up and maintaining the networking infrastructure to support seamless data transmission and communication.
Understanding the costs and the professionals involved in these key components highlights the complexity and expense of constructing and operating data centers. These investments are essential to create a robust, reliable, and secure environment for data storage and processing.
Recently Completed Data Center Construction Projects in the DMV
Amazon Web Services Data Center
| Project Information | |
|---|---|
| Project Type/Size: | Data Centers (240,000 sq-ft) |
| Construction Type: | New |
| Estimated Value: | $25-$100 million |
| Sector: | Private |
| Location: | Springfield, VA 22150. 7961 Loisdale Rd |
| Details: | Plans call for the demolition of the existing office buildings, and the construction of a 240,000-square-foot data center on a 23.59-acre site. |
| Estimated Schedule | |
|---|---|
| Stage: | Completed |
| Construction Start: | 12/2022 |
| Construction End: | Q2/2023 |
Google Data Center
| Project Information | |
|---|---|
| Project Type/Size: | Mfg./Industrial/Warehouse/Research/Technology (250,000+ sq-ft), Data Centers |
| Construction Type: | New |
| Estimated Value: | $25-$100 million |
| Sector: | Private |
| Location: | Dulles, VA 20152. Evergreen Mills Road and Route 606 |
| Details: | Plans call for a new data center on a 91-acre property. |
| Estimated Schedule | |
|---|---|
| Stage: | Completed |
| Construction Start: | Q3/2018 |
| Construction End: | Q3/2019 |
Johns Hopkins University Applied Data Center
| Project Information | |
|---|---|
| Project Type/Size: | Data Centers (1,710 sq-ft) |
| Construction Type: | Renovation |
| Estimated Value: | $1.3 million |
| Sector: | Private |
| Location: | Laurel, MD 20723. 7651 Montpelier Rd |
| Details: | Plans call for the renovation and conversion of the existing 1,710-square-foot space into a data center. |
| Estimated Schedule | |
|---|---|
| Stage: | Completed |
| Construction Start: | Q4/2021 |
| Construction End: | Q2/2022 |
How Do Contractors Find the Right Data Center Project Leads and Decision-Makers?
Finding the right project leads is crucial for contractors aiming to secure data center construction and maintenance projects. Here are some strategies and tools that contractors can use to identify and pursue suitable opportunities.
Utilizing BuildCentral as a Lead Service
Lead services provide valuable information on upcoming data center projects, including details on location, project value, construction stage, plans, specifications and key contacts. BuildCentral cuts through the clutter and gives you all the data and information you need, including:
- Advanced Filtering: Find the exact projects you’re looking for.
- Location Analytics: Focus on projects in geographic areas where your company operates.
- Project Value: Target projects that align with your capabilities and financial goals.
- Construction Stage: Identify projects at stages where your services are most needed, such as planning, bidding or construction.
- Plans and Specs: Review detailed plans and specifications to assess project requirements and suitability.
- People and Companies Involved: Identify key decision-makers and companies involved in the project to facilitate networking and outreach.
Start a free trial to get all of these features and more.
Networking and Industry Connections
Building and maintaining industry connections can help contractors discover new project opportunities through referrals and recommendations. Attending industry events, conferences and trade shows allows contractors to meet potential clients and partners.
Attending Industry Events and Conferences
Participating in industry events and conferences provides you with opportunities to network with decision-makers, learn about upcoming projects and stay informed about industry trends and developments.
Specific Types of Subcontractors for Data Center Projects
Data center construction and maintenance require specialized subcontractors with expertise in various areas. Here are some key types of subcontractors involved in data center projects:
Electrical Contractors
Electrical contractors are responsible for installing and maintaining the electrical systems that power data centers. Their work ensures that data centers have a reliable and redundant power supply.
HVAC Contractors
HVAC contractors design, install, and maintain the cooling systems that regulate the temperature within data centers. Their expertise is crucial for preventing overheating and ensuring efficient operation.
Networking Specialists
Networking specialists set up and maintain the data center’s network infrastructure, including routers, switches and cabling. They ensure seamless connectivity and communication within the data center.
Security System Installers
Security system installers implement and maintain the physical and cybersecurity measures that protect data centers from threats. Their work includes installing surveillance cameras, access control systems and cybersecurity technologies.
Planned Data Center Construction in the DMV is Still Going Strong
The Washington, D.C., Maryland and Virginia (DMV) region has become a critical hub for data center infrastructure, driven by both government requirements and private sector demand. The strategic location, robust power and connectivity infrastructure, favorable climate and supportive regulatory environment make the DMV an ideal setting for data center operations.
Building data centers involves substantial investment due to the high costs of infrastructure, security, redundancy, and advanced cooling systems. Despite these costs, the demand for data centers continues to grow, reflecting their essential role in the modern digital economy.
Contractors seeking to enter this market must navigate the complexities of identifying the right leads, connecting with decision-makers and assembling specialized subcontractor teams. Utilizing resources like BuildCentral can provide valuable insights and contacts, facilitating successful project acquisition and execution.
Find data center projects, location analytics and contacts with a free trial.
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