Why the data centre industry struggles to keep secrets
Just two reasons.
The data centre sector is secretive to the extreme, secured by punitive NDAs. The data centre industry is also one of the leakiest. Here's why.
This UnfilteredFriday, let's talk about secrets, or apparent lack of, in the data centre industry.
A veil of secrecy
Almost a decade ago, at the start of my journey covering data centres, an expert briefed me on the details of a major data centre outage.
After I sat down, I was told that everything was off the record: "Don’t quote my name or I’ll be sued right out of my pants."
I didn't publish everything I know as a result.
However, the context added to my understanding - and reporting. It also made me understand how official statements can distort the picture without lying.
Why is it so hard to keep secrets within the data centre industry? Two main reasons.
- Heavily outsourced
Building a data centre require the effort of hundreds, sometimes even thousands of workers. These experts fulfil different roles:
- Business consultants.
- General contractors.
- Equipment vendors.
- Data centre designers.
- Commissioning agents.
Then there's:
- Banks.
- Regulators.
- Real estate brokers.
- Officials from the utilities.
- National development boards.
In fact, someone I met this week told me that there are easily four to five layers of intermediaries to design and build each data centre.
That's why information often leak like a sieve.
- Too big to hide
Moreover, the typical data centres are massive buildings that cannot be hidden. What's more, every country has regulations around signages of construction work.
Which means the information is literally in the public for all to see.
Indeed, market intelligence firms such as DC Byte put in the leg work to visit various work sites to track the construction progress of data centres.
Growing together
While some investors and competitors are doubtlessly seeking undisclosed details to gain an advantage, I believe the bulk of hushed conversations stem from a desire for self-betterment.
And this is where I believe the industry can do better: Do more to grow together as an industry.
- Learn from mistakes for industry-wide improvement.
- Entice more people to join the industry.
- Collaborate for smarter innovation.
- Share ideas for collective success.
Do you agree?
Going OCP Tech Day in Singapore?
I wrote this post without a specific event in mind. But it occurred to me that one opportunity to exchange knowledge would be OCP's South East Asia Tech Day this coming Wednesday.
- Date: 9 July.
- Location: MBS, Singapore.
Details here.
