Our Industry
Data Center Site Selection: Why It Matters Long-Term
March 25, 2025
Choosing the right site for a data center goes beyond securing a location; it’s a strategic decision directly impacting operational efficiency, cost control, and long-term stability. For leaders involved in data center development and facility oversight, understanding the nuances of site selection is crucial. This blog post identifies the factors that can enhance project success and mitigate risks.
POWER AVAILIBILITY & COST: FUELING LONG-TERM ROI
For any data center, a reliable and cost-effective power source is essential. Evaluating power cost per kilowatt early on can help forecast operational expenses and ensure long-term ROI. By understanding this, decision-makers can avoid potential capacity issues and unexpected costs, setting the stage for a more sustainable investment.
CONNECTIVITY & FIBER INFRASTRUCTURE: PREPARING FOR FUTURE NEEDS
Selecting a site with robust fiber infrastructure reduces latency and ensures dependable network performance. Opting for a location with existing connectivity is more cost-effective than building new infrastructure, which can delay projects and inflate budgets. This foresight allows facilities to stay competitive and adaptable to evolving data demands, reinforcing network reliability for years.
NATURAL DISASTER RISK: ENSURING RESILIENCE IN CRITICAL LOCATIONS
Data centers must stay operational even during adverse conditions. Choosing a location with a low natural disaster risk protects assets and ensures uptime, which is critical for operations management.
TAX INCENTIVES & FINANCIAL PLANNING: BOOSTING FINANCIAL STABILITY
Tax incentives can significantly impact the cost of a data center project. Developers can improve financial feasibility and control costs by strategically selecting regions with favorable tax policies—such as property tax waivers for several years.
SOIL STABILITY & SITE PREPARATION: BUILDING A RELIABLE FOUNDATION
Soil quality can make or break a data center construction project. Evaluating soil stability, toxicity, and grounding conductivity is important in ensuring the site supports a data center’s weight and electrical grounding needs. Proactively addressing soil conditions can save on costly site preparation and structural reinforcements, promoting a reliable and efficient foundation for operations.
A STRATEGIC APPROACH TO SITE SELECTION
Selecting the right data center site is a process that, when done thoughtfully, provides a stable, cost-effective, and future-ready facility. For industry leaders and facility experts, these considerations make sure that site choices support operational resilience and long-term profitability. This strategic approach to site selection builds a foundation for success in an ever-evolving digital landscape.
If you’re evaluating potential sites and want guidance on making the best choice for your data center, reach out to me at jsneed@wbengineering.com—we’re here to help you build a strong foundation for your facility.
