Data Center Total Cost Analysis Presentation - CFRT

1 Presented to:Critical Facilities Round TableJanuary 13, 2006 Total cost of Ownership Analysis for Data Center ProjectsPresented by:Jerry InguagiatoSr. Vice RoderVice of ContentsTable of Data Center Market / Purchase / Colocation Data Center Market / Purchase / Colocation RoderVice Inguagiato & Shap Roder Jerry Inguagiato & Shap Roder Represented 158 Lease/Sale transactions 4,369,177 square feet of transactions Over $800,000,000 in consideration 10 years of commercial real estate experience Represented 158 Lease/Sale transactions 4,369,177 square feet of transactions Over $800,000,000 in consideration 10 years of commercial real estate experience Represented 98 Lease/Sale transactions 2,544.

2 385 square feet of transactions Over $100,000,000 in consideration 8 years of commercial real estate experience Represented 98 Lease/Sale transactions 2,544,385 square feet of transactions Over $100,000,000 in consideration 8 years of commercial real estate experienceJerry InguagiatoSr. Vice MapExperience MapTechnology Practices Group and CB Richard EllisTechnology Practices Group and CB Richard Ellis Dating back more than 200 years, CBRE is the world s largest provider of diversified commercial real estate services. 17,000 employees Offices more than 300 markets across 50 countries worldwide.

3 CB Richard Ellis European TPG was formed in 1994. US arm was later formed in 2000 and was originally called Intellisite. A global operating unit of CBRE professionals specializing in delivering solutions to companies at the crossroads of technology, telecommunications, and real estate. 150 members worldwide in more than 250 global offices. Principal aims are to represent the technology business across CBRE sservice lines and to offer technical real estate services across industry sectors, with particular focus on data Practices GroupHistorical Data Center Market TrendsHistorical Data Center Market TrendsHistorical Statistics - 2006 Historical Statistics - 2006 Gross Absorption Comparison199619971998199920002001200220 03200420052006 YearMarket StatisticsMarket , ,000 Northern New ,635 Silicon Industrial & Office Inventory (Million SF)

4 Raised Floor as % of Inventory213,105199,59360,000 Available Raised Vacancy2Q 05 Industrial Vacancy 2Q 05 CitySilicon Valley Market OverviewSilicon Valley Market OverviewAreaSilicon Valley* Size (SF)Direct AvailableSublease AvailableAvailable SFAvailable %Direct Vacant SFDirect Vacant %Sublease Vacant SFSublease Vacant % Total Vacant SFTotally Vacancy %Under ConstructionPlannedLow RentHigh Rent(Silicon Valley* is defined as Palo Alto, Mt. View, Sunnyvale, Santa Clara, Cupertino, Saratoga, Los Gatos, Campbell, San Jose, Milpitas, Fremont and Newark.)YearVacancyLease RatesAbsorptionConstructionYearVacancyLe ase RatesAbsorptionConstructionTenant DemandTenant DemandDateSquare Feet6/1/005,190,0006/1/011,167,0006/1/02 225,00010/2/0285,0001/13/06440.

5 000 Inflationary DriversInflationary Drivers Barriers to Entry Supply Side Reduced Government Legislature Market Pressures Legacy Facilities / Antiquated Facilities Barriers to Entry Supply Side Reduced Government Legislature Market Pressures Legacy Facilities / Antiquated FacilitiesTrendsTrends Absorption Less Supply Users - Organic Reemerge of Colo Operators 1stShell Deal Done in +5 years Balance Power Shift to Landlord 4 Year Window Starting to Shut on Opportunity to Leverage Existing Infrastructure Large Deal Ownership 100% Ownership Low cost of Funds Fed & SEC Compliance Absorption Less Supply Users - Organic Reemerge of Colo Operators 1stShell Deal Done in +5 years Balance Power Shift to Landlord 4 Year Window Starting to Shut on Opportunity to Leverage Existing Infrastructure Large Deal Ownership 100% Ownership Low cost of Funds Fed & SEC ComplianceForecastForecast Higher Lease and Purchase Rates More Green Field More Competition On Up Swing of Curve More Inflationary Factors Pushing Up cost Higher Lease and Purchase Rates More Green Field More Competition On Up Swing of Curve More Inflationary Factors Pushing Up CostQuoteQuote"We are almost full now.

6 " says Jackie Fitzpatrick, senior director of sales for Carlyle Realty Group West, which leases the 16-story MAE West building in downtown San Jose that is a mix of data Center and office space. "I'm definitely hoping that my boss will buy me another data or I'm going to have to refer (new customers) to other people." Data centers are 'in' -- again Andrew F. Hamm From the October 21, 2005 print edition Lease / Purchase / Colocation OptionsLease / Purchase / Colocation OptionsBuilding ProfilesBuilding ProfilesAddress:3080 Raymond Clara1100 Space Park Clara39800 Eureka Napa Valley Corporate Total SF25,000150,000106,690157,5002 Available SF25,00025,000106,6903 Technical Area17,600 Shell72,260120,0004 Raised Floor (Y/N)NNYY5 Vacancy Rate100%17%100%100%6 Primary Power3,200 amps480 volts85 WSF2-50kV Feeds10 MW7 RedundancyN+1N+12-N+1N8 UPSAC- 1,000 KVADC- 2,400 ampsBTSYes3,000 kW9 Generators2 KVA4,500 kW10 SeismicSIF= Cooling20 CRAC UnitsBTS2,184 Tons572 Tons12 Tenant(s)

7 , TycoMCIC itigroup / Apple13 Lease/SaleLeaseLeaseSaleSaleAvailable Data Center PropertiesColocation OperatorsColocation OperatorsPricing VariablesPricing VariablesPricing Variables1. Rent (Rack vs. Square Foot)2. Electric (Connected Amp vs. Separately Metered)3. Cooling (1/2 Electric Costs)4. Environment / Services (Racks, Hosting)Pricing Variables1. Rent (Rack vs. Square Foot)2. Electric (Connected Amp vs. Separately Metered)3. Cooling (1/2 Electric Costs)4. Environment / Services (Racks, Hosting)Colocation Requirement CriteriaColocation Requirement CriteriaLEASE TERM 5 Years AREA 5,000 square-feet SPACE IMPROVEMENTSS pace shall be improved with access/raised floor, electrical branch circuits, and cooling.

8 Space shall be protected with a building-wide security system. RACKING 150 Cabinets1 ELECTRICAL Two 208 VAC 30A circuits per Cabinet MECHANICAL HEAT REJECTION 3,000W per Cabinet TECHNICAL SERVICES No technical services NETWORK CONNECTIONS One 1 Gbit WAN Circuit to San Francisco One 1 Gbit WAN Circuit to Sacramento 1 Cabinets will be Tenant-provided. Cabinet includes footprint for floor-mounted equipment (such as storage equipment). ComparisonComparisonData Center Construction CostsData Center Construction CostsRaised Floor (SF)RacksSupport SpaceLoadRedundancy ConfigurationMechanical Redundancy6,000180 +/-1, IT Load mW Total Load ( w/SF)2N UPSN+140,000860 +/-13, IT Load Total Load (140 w/SF)"6 makes 5" with Static Switched PDU UPSN+112,000-3, IT Load mW Total Load (133 w/SF)N+1N+20%Price Comparison Build vs.

9 OutsourcingPrice Comparison Build vs. OutsourcingStartup ExpensesBuild 200 Sq Ft FacilityOutsource Solution1# of Cabinets12122# of T-1's1212 Design Engineering$50 per sq ft10,000$ -$ Permit & fees1,500$ HVAC3$1500/ton9,000$ -$ Power Power Distribution4$41 per sq ft8,200$ -$ UPS4$28 per sq ft5,600$ -$ Generator & Bus4$55 per sq ft11,000$ -$ Fire Suppression5$20 per sq ft4.

10 000$ -$ Pre-action @ sprinklers13$7,500 min7,500$ Security Systems$3 per sq ft600$ -$ Environmental monitoring$5 per sq ft1,000$ -$ Other Construction11$45 per sq. ,000$ Builder overhead & fee15%10,110$ Network Termination Equip6$1,000 per T112,000$ -$ Network Install$600 per T17,200$ -$ Network Install - Outsourced$460 per T15,520$ Cabinets$1500 per cab18,000$ 18,000$ Total114,710$ 23,520$ Startup Savings91,190$ Price Comparison Build vs.