When it comes to purchasing,
selling, investing or developing a data center project
the Electrical Group Data Center Due Diligence team
are here to help drive decision-making
reducing expose to significant and unnecessary risk.
Why Use The Electrical Group for Your Data Center Due Diligence?
Data Centres are mission critical business assets. Althorough data center due diligence assessment provides an understanding of your data centre’s ability to fulfil current business needs and scale with business growth as well as its condition, management and operation is essential to the success of any Enterprise. Such an understanding helps not only to mitigate risk associated with data centre failure, but also to effectively plan and budget for future requirements.
Important decisions about business growth, investment and future strategy should be based on robust research and in-depth analysis. We advise buyers, sellers, investors and developers to help drive decision-making and position them for future success.
Our team has experience in the complexities of multi-site and multi-company due diligence and can also provide:
- management of the technical aspects of a purchase or of an Agreement to Lease
- independent certifier – to review contractors’ progress, confirming that work is being delivered in accordance with contracted obligations
- fund and bank monitoring – from feasibility studies to completions and handovers
- project audit commissions on both projects in progress and after completion
- other consultancy work, including expert witness services in litigation and technical assessment and assurance services.
Our Data Center Due Diligence Services Include
Site assessment/site selection
Risk assessment and single point of failure analysis
(by system or across a building)
Design and peer reviews
The Importance of Technical Due Diligence
for Data Center Projects
M&A and investment in data centres is seeing significant growth in most Global markets. As with any M&A or investment, due diligence is carried out for the more traditional elements of the business including current and future market conditions, the competitive landscape, the management team and financials however what is often over looked, within the data centre sector, is technical data center due diligence of the facilities themselves.
What is Technical Due Diligence
This is an area of investigation that concentrates solely on the physical infrastructure that supports the IT hardware; this includes the power systems, cooling infrastructure, building fabric and security. It is this infrastructure envelope that is a data centre’s business and what, ultimately, its clients are paying for.
Some of the elements that are essential to its value are detailed below;
The power system is made up of a number of components including transformers, switchgear, Uninterruptible Power Supplies (UPS) and standby generators. These components should ensure a continuous, “clean” supply of electricity to the IT hardware at all times. This includes when the local grid supply fails.
IT hardware produces heat. The relationship between power usage and heat output is almost linear, 1 kilo watt (kW) of electricity in, produces 1 kW out of heat out. Manufacturers of IT hardware require their IT equipment to operate within certain temperature ranges. As the equipment is continually on and producing heat, the data centre must be cooled to ensure the equipment stays within the required range.
The Building & Security
Data centres come in a range of building types from wrinkly tin sheds to ultra high specification bunker like structures. The security system can range from a receptionist and HID card to motion sensors, thermal imaging and biometric access control down to the cabinet level.
Connectivity & Networks
In the most part a data centre is only as good as its connection to the rest of the world. This can be achieved with diverse connectivity provided to different parts of the data centre via different providers operating on different networks.
Why is Technical Due Diligence Important
The age, specification and configuration of a data centre’s infrastructure will play a large part in the profitability and marketability of the business/facility. This infrastructure will dictate OPEX and CAPEX investment and will significantly influence the type of customer and market position a facility will have and will also dictate the type of IT technology that can be supported within it.
Data Center Due Diligence Case Studies
The Electrical Group Data Centre Programme Management provides our clients with comprehensive technical advice to the highest professional standards, founded on innovation and sustainability.
Below you will find a selection of recent case studies