Perspective: Data Center Site Selection
- datacenterprimerja
- Feb 27
- 5 min read
James Soh. First published on 19th of September, 2025.
Site Selection Is No Longer the Only Top Priority: What Really Matters Today
Many established site selection criteria for data centers, such as those outlined in EN 50600, BICSI 002, or TIA 942-C, remain relevant today. However, these frameworks are largely developed from the perspective of mature European or U.S. cities. Such environments typically have stable and robust infrastructure, regulatory frameworks, and resource availability.
In developing countries, the situation can be quite different. Infrastructure may be less reliable, sustainability harder to achieve, and local realities more variable. This means that site selectors must thoughtfully adapt these international standards to fit local constraints—like limited power grid capacity, water availability challenges, telecommunications infrastructure gaps, and evolving regulatory and community contexts. Balancing these global standards with pragmatic local adjustments is essential for site selection success in emerging markets.
For example, Singapore faces a unique challenge: the guideline that no data center should be within 16 kilometers of an airstrip is effectively impossible to meet because no part of Singapore satisfies this criterion. This illustrates how strict application of specific standards from developed contexts may not be feasible in small, highly urbanized nations, necessitating tailored strategies that reflect local realities.
While these established standards provide valuable guidance, an overemphasis on traditional site selection criteria can sometimes overshadow other crucial factors that influence project success.
The Overemphasis on Site Selection in Data Center Literature
Many standard data center books, training courses, and design guides heavily emphasize site selection—arguably too much. This focus can obscure other critical success factors such as availability of power, water, telecommunications, and social environment risks, which often dictate operational viability more than geography alone.
This narrow focus isn't just a theoretical concern—recent industry data reveals the costly consequences of overlooking these broader factors.
Real-World Data: The Stakes Behind Site Selection
Recent industry studies highlight why a narrow focus on site location can lead to costly mistakes:
Power constraints and water availability are increasingly cited as top limiting factors in data center project delays and failures. One expert noted that “utility providers’ collaboration early in site evaluation is critical to avoid capacity bottlenecks”.
Regulatory challenges and community pushback continue to lead to project redesigns or cancellations, especially where environmental or social risks were underestimated.
Thailand’s Eastern Economic Corridor exemplifies how integrated infrastructure and government incentives mitigate risks by offering robust utilities combined with regulatory support.
Expert Perspectives on Modern Site Selection
Leading site selection specialists stress:
The importance of comprehensive feasibility studies that combine economic, infrastructural, regulatory, and community dimensions.
Understanding local incentives (tax breaks, grants, zoning) can materially affect operational costs and project ROI.
The need to analyze location-dependent costs beyond land price, including expected labor, logistics, utility expenses, and potential risks.
Critical non-financial factors such as site security, environmental impact, access to suppliers, and community relations.
I would put it “Effective site selection must integrate business objectives with the realities of incentives, infrastructure capacity, and social context to deliver long-term success.”
To understand what this comprehensive approach looks like in practice, let's examine each of these critical factors in detail.
Deeper Insights on Critical Factors
Availability of Essential Resources Power, water, and telecommunications are no longer just utilities but foundational pillars. Power outages or water shortages can halt entire data center operations, resulting in massive revenue loss and reputational damage.
Client Preference and Proximity Beyond logistics, client engagement thrives when sites are geographically aligned with client operations, enabling stronger relationships and greater responsiveness.
Infrastructure and Workforce Without dependable transport networks and a skilled labor pool, projects face delays, quality compromises, and inefficiencies. Urban amenities supporting talent retention also contribute significantly.
Social and Environmental Context Managing relationships with neighbors and local communities is increasingly vital. A recent incident near a data center project highlighted how neighboring school gangs carrying banned items posed significant security risks that could jeopardize the entire site.
My own experience and friends’ project experience sharing in Southeast Asia demonstrates just how real these social environment risks can be.
Personal Experience: Managing Neighborhood Risks During Site Construction
During the construction of a data center campus with a 20 MW IT load in the first phase, the adjacent technical college presented unexpected security concerns.
A student gang, some carrying banned items, sought permission from our contractors’ security guards to store their bags on-site temporarily. Concerned about potential crimes linked to these bags or discovery of contraband by authorities—which could halt the project—I directed the guards to refuse this request immediately.
The second case was when I was working in SongJiang district of Shanghai, and we were directed to plan to construct 3 data center buildings; however, the site was 150 meters in parallel with an active railway. The noise and vibration would have deterred potential clients from using our data centers had we proceeded. I put this project on the back burner, and 10 years later, the site remains inactive due to its proximity to the railway track.
Another case was related by a colleague Ben, when he was the project director for a data center project in Bekasi area. The owner’s team employed some of the village adults as security guards, but these guards allowed people to walk in, cut and carry off the expensive electrical cables and tools. Ben had to arrange a replacement security guard service to replace these guards right away.
This incident revealed how site selection must encompass social environment risks alongside physical infrastructure to safeguard operational continuity.
Comparing Regional Site Selection Factors
While frameworks and data provide structure, the real art of site selection lies in synthesizing all these factors through experienced judgment, like the story below would demonstrate.
Success Story
A colleague, YK, is an outstanding expert in recommending suitable data center sites. I believe his network of contacts, his years of experience, knowledge of data center development in Southeast Asia, and his keen observation of potential obstacles form a powerful combination that makes him indispensable on project or investment committees when it comes to selecting a suitable site for a data center. To my knowledge, he has been right on three counts in the past four years.
YK's track record exemplifies how modern site selection has evolved from a location-focused checklist into a strategic discipline that integrates complex, interconnected variables.
Conclusion
Site selection is no longer a standalone decision. It demands an integrated approach balancing resource availability, client alignment, infrastructure, workforce, social context, and sustainability. Ignoring any of these can jeopardize timelines, costs, operations, and reputations.
Modern projects require collaboration between site selectors, clients, regulators, utilities, and communities for resilience and success in a complex world.
Reference:
For further context on school gang-related security challenges in Bangkok, see:
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