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Navigating Cost-Proximity Trade-Offs in Vertical Data Centers: Challenges and Solutions

A proposed 20-story data center in downtown Kansas City, Missouri, aims to revolutionize the traditional sprawling suburban campus with a vertical design that harnesses urban density and enhanced connectivity. This ambitious project, designed by the renowned Chicago architecture firm Skidmore, Owings & Merrill (SOM), presents an opportunity to optimize computing, power, and cooling on a more compact footprint while addressing the growing demand for high-performance data services.

Located on approximately 0.23 acres, the proposed facility is currently awaiting approval, with local development plans on hold until mid-October. Steve Austin, founder and CEO of Revitalization Unlimited, emphasizes that urban locations are crucial for applications demanding quick inference, such as financial transactions, where proximity to networks can yield significant latency advantages. The project space will prioritize diverse fiber connections and a carrier-neutral stance to attract customers needing rapid access to a range of networks.

Despite the advantages of urban data centers, such as immediate access to carrier-rich environments, the cost of constructing such facilities in dense locations is significantly higher. Austin estimates total development costs at approximately $183 million, translating to nearly $1,300 per square foot. The breakdown reveals that most of these expenses will be allocated to essential mechanical, electrical, plumbing, and fire protection systems.

This design includes two of the twenty floors dedicated to computing, with the majority of the building’s space supporting operational infrastructure. This ratio reflects the inherent trade-offs of vertical building, where saved land use at ground level must be compensated by additional facilities above it.

Challenges arise with vertical structures, particularly related to equipment placement and operational logistics. Many equipment manufacturers design systems for horizontal layouts, complicating the integration of power and cooling equipment for upward-stacked infrastructures. Careful planning for factors such as weight, access, and maintenance is vital for successful operation.

Environmental impact is a significant consideration with such projects. While the intention is to minimize land use, experts caution against assuming that a smaller physical footprint results in a reduced environmental impact. Austin projects that the center will achieve a Power Usage Effectiveness (PUE) of 1.25 and will employ on-site Bloom fuel cells as its main energy source, highlighting the need to evaluate the environmental ramifications of self-generated power and cooling systems.

Beyond financial and operational implications, Austin points to potential community benefits, such as increases in local tax revenue and job creation, primarily through contractor and service roles related to the facility. The developers are not seeking tax abatements and have expressed willingness to meet community obligations, ensuring active ground-floor venues and investment in local resources.

Flexibility is another critical aspect of the facility’s design, aiming to adapt to changing workloads and technologies over time. The overall objective is to strike a balance between the complexities introduced by verticality and the operational benefits associated with downtown locations. Austin maintains that while not every data center belongs in urban settings, the Kansas City proposal’s unique characteristics justify its construction premium.


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