Although the Dallas multi-tenant data center (MTDC) market is competitive, Aligned Data Centers can find success as its pay-for-use pricing model generates considerable interest from not only cloud service providers but also fast-growing mid-market and enterprise customers that could benefit from it. That’s the takeaway from a recent report by 451 Research.
This is a recap of the 451 Research report, “Aligned Data Centers enters Dallas MTDC market with consumption-based pricing model.”
As Aligned Data Centers prepared to launch our new Plano data center, 451 Research analyst Rick Kurtzbein took a close look at our strategy to incrementally build out customer capacity in a contained environment, with a pay-for-use pricing model and guaranteed 1.15 PUE and 100% availability. The report describes how we’ve set out to solve the problem of stranded power and cooling, which negatively impacts data centers by wasting energy and inflating costs.
Leveraging 25 years of data center experience
According to 451 Research, we’re poised for success in part because Aligned Data Centers was formed by a group of industry veterans with more than 25 years experience in designing, engineering, building, and operating data centers for some of the largest an most innovative internet, communications, and financial services organizations.
Fixing the issues with fixed density
According to the 451 Research report, “Much of datacenter capacity planning continues to leverage fixed densities and power requirements. In doing so, customers often end up with excessive space and stranded power, as well as ending up locked into long-term fixed ramp schedules that require they pay for more space and power than necessary for IT infrastructures.”
Aligned Data Centers resolves those problems. Our customers determine how much capacity they need, when they need it. They adjust their rack density from 1-25kW based on their variable IT loads. They’re not locked into a fixed ramp schedule. With pay-for-use pricing, our customers align their data center capacity to their business needs. If they use less, they pay less.
Consumption-based pricing model
451 Research explains the Aligned Data Centers pricing model: “Aligned uses a utility approach that charges a baseline fee for capacity, as well as for power and cooling actually used. The firm charges a reduced baseline fee for reserved contiguous capacity (approximately 70% less) to ensure capacity for future growth. At 100% utilization of the capacity, the charge is equal to lowest cost providers but with the PUE of 1.15 gives them a lower total cost. At any utilization below 100% the savings increase. Given that average colocation utilization is between 40-50% the savings are significant. This is Aligned’s vision to simplify capacity planning and eliminate stranded power.”
Strengths and opportunities
In the 451 Research report, Kurtzbein points out that Aligned Data Centers has entered a competitive Dallas wholesale market at a time when several providers have added data center capacity. Yet for the challenges associated with a competitive market, Aligned brings important strengths and opportunities, according to 451 Research:
- “Aligned Data Centers possesses an innovative approach with its datacenter design, as well as its consumption-based pricing. The firm also benefits from a seasoned senior leadership team with capital backing from BlueMountain Capital Management.”
- “Aligned Data Centers has positioned itself and its consumption-based pricing model as perhaps the next evolutionary step in pricing for the MTDC sector. We believe the firm will take its model as planned to additional top North American markets.”
Located to the north of the Dallas-Fort Worth metropolitan area with easy access to major freeways and minutes from both Love Field and the Dallas/Forth Worth International Airport, our 100,000 square foot Plano data center is situated on more than 16 acres providing ample room to expand.
Learn more about the Plano pay-for-use data center:
- 7 Reasons We Love Plano for Data Center Colocation (blog post)
- Inside Aligned Data Centers Plano (video)