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Data Center: Special Requirements?

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  1. #1

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    Question Data Center: Special Requirements?

    My friend has a 4000 sq feet storage space in Wanchai. He wonders is it possible to rent out as a data center. Are 4000 sq feet too small to become a data center? Also, are there any FS regulation for this type of setting?


  2. #2
    jgl
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    4000 square feet strikes me as tiny for a datacentre.

    FS = financial services? A randomly converted space in wanchai won't be used by that kind of customer.

    Google datacentre tiers for some background reading.


  3. #3

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    Smile Simple answer, yes?

    To be viable, you’d need redundant high speed commercial grade internet links, switching equipment, fire retardant systems, raised floors, climate control, uninterruptible power, Server racks, physical access control, etc ... no idea what that’s going to cost, but it won't come cheap 🤔

    If you were thinking of offering a vps service, then all the server equipment and provisioning is up to you as well 😅

    No idea if special permits or other licenses might be required ...

    In short, there are probably cheaper ways to make money out of the space 😊


  4. #4

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    In short, there are probably cheaper ways to make money out of the space
    Shared storage spaces are quite popular, if you've got a good residential and commercial mix of buildings around you.

  5. #5

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    Quote Originally Posted by pumpkin1
    To be viable, you’d need redundant high speed commercial grade internet links, switching equipment, fire retardant systems, raised floors, climate control, uninterruptible power, Server racks, physical access control, etc ... no idea what that’s going to cost, but it won't come cheap ������

    If you were thinking of offering a vps service, then all the server equipment and provisioning is up to you as well ������

    No idea if special permits or other licenses might be required ...

    In short, there are probably cheaper ways to make money out of the space ������
    Yes, and they are not easy or fast to acquire.

    A data center is probably the last thing you'd want to do with this space.

  6. #6

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    Fire Safety


  7. #7

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    As other people correctly mentioned, there are multiple technical requirements for a data centre, which will cost a lot of money. And who knows if that particular building has good enough electricity connection. People who know how to do all these things will also need to be hired. On the other hand, there are lots of data centres already, including in much cheaper locations, which will be competing for the same customer. Think of Slough in the UK. You can buy a whole street there for the price of a double bedroom apartment in Wan Chai. Probably better to open a restaurant in the available space


  8. #8

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    Quote Originally Posted by pumpkin1
    To be viable, you’d need redundant high speed commercial grade internet links, switching equipment, fire retardant systems, raised floors, climate control, uninterruptible power, Server racks, physical access control, etc ... no idea what that’s going to cost, but it won't come cheap

    If you were thinking of offering a vps service, then all the server equipment and provisioning is up to you as well

    No idea if special permits or other licenses might be required ...

    In short, there are probably cheaper ways to make money out of the space
    My friend prefers storage as he wants a quiet environment and he will use part of the space.

  9. #9

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    Quote Originally Posted by stanleystanley
    My friend prefers storage as he wants a quiet environment and he will use part of the space.
    Can he sign a long term lease with an established storage company and use the cash generated to do his own thing? Or perhaps sign a lease for 3000 sq ft etc? Know some folks who split up their industrial units (full floor) into multiple units + shared office / co work spaces by paying some conversion license fees and they do make above average returns, after the conversion costs.

    He should also be reviewing what sort of usage the land lease permits. Many are restricted to "industrial workshop" type uses and cannot be switched easily. In one case I am aware of, a fitness center was setup in a similar unit and had to be relocated a year or so later after a complaint was filed.
    stanleystanley likes this.

  10. #10

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    Quote Originally Posted by shri
    Can he sign a long term lease with an established storage company and use the cash generated to do his own thing? Or perhaps sign a lease for 3000 sq ft etc? Know some folks who split up their industrial units (full floor) into multiple units + shared office / co work spaces by paying some conversion license fees and they do make above average returns, after the conversion costs.

    He should also be reviewing what sort of usage the land lease permits. Many are restricted to "industrial workshop" type uses and cannot be switched easily. In one case I am aware of, a fitness center was setup in a similar unit and had to be relocated a year or so later after a complaint was filed.
    Thanks for your advice. I will let him know about it. I love fitness center!

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