Ottawa has a deficit of data storage capacity. Mr. Nick Maiorino and Mr. Alan Doak were fortunate to be engaged by a group of technology entrepreneurs who intended to open an independent Tier 3 data center facility to satisfy the local demand.
Security concerns, a lack of available power and a lack of existing infrastructure made many of the more obvious locations untenable. Also, being a start-up, the principals of Granite Networks needed a landlord who was willing to make a heavy investment in a property without a strong covenant to guarantee repayment.
Data Centers must be housed in high quality industrial facilities, which have an abundance of power and the ability to support heavy HVAC equipment and any necessary security enhancements. Our principals conducted an exhaustive search of all listed and unlisted properties that might be suitable for the assignment. Working in conjunction with the CIO of Granite Networks, the team was able to uncover a location that met all of the technical specifications for the new center and also provided the right “branding” to attract new clients.
By leveraging the lack of demand in the market, and underlining the business opportunity for the Landlord, the team was able to negotiate a lease agreement that included a heavy landlord investment in tenant improvements and a considerable free rent period which Granite Networks could use to reach profitability.
Granite Networks was able to secure an ideal location for its new business, and as result, Ottawa saw the development of its first independent Tier 3 Data Center Facility.
The solution allowed the entrepreneurs who developed the facility to sell to Black Iron. This transaction resulted in a win for the principals and for the Landlord who provided the right lease structure for the business to get off the ground.