How Do Data Center Developers Approach Covering the Cost of Outages?

NORTH CHARLESTON, SOUTH CAROLINA – CapRE’s 2018 Southeast Data Center Spring Update, kicked off with a panel discussion titled Carolinas Data Center Market 360: An Overview of Regional Development, Site Selection Advantages and Leasing Trends. After the quartet of panelists had discussed various aspects of the Carolinas, from power to cooling to the climate to tax breaks, a member of the audience rose their hand to ask a bread-and-butter question. “Do you carry any particular coverage for unanticipated outages and do you negotiate that coverage on a per-client basis?” asked the inquisitive attendee. Rather than delegate, Moderator Michael Fuhrman, Chief Product Officer for Flexential chose to tackle this question head-on. “Yes, yes we do cover a fair bit of coverage there,” he replied. “Certainly unanticipated outages do occasionally occur. I’ll give you an example. We actually had a vendor down in our facility in Miami who somehow accidentally hit the emergency power-off button in the facility. And of course, the reason that big red button there is in case of an emergency, you just don’t want power anywhere. The entire facility went down for a short amount of time. So we have some clean up work to do there, shall we say, as a result of that.” “So while they’re unanticipated, you have to be prepared for that,” stressed Fuhrman. “Whether it’s a natural disaster driving it, or whether it’s a utility provider failing in a catastrophic way, or whether…