Study Underway to Determine Feasibility of Telecommunications Hub in Eagan

Consultants have begun work on a feasibility study for a specialized data center, known as a colocation facility, about a month ago, and the city should start seeing the first results within 90 days.

Whether such a facility is eventually built in Eagan, and what it will look like, depends largely on the results of the study and the kind of input and level of interest that can be determined by talking to businesses in Eagan, the broader community and even in other states.

The consultants hired by the city to conduct the study include representatives from three firms: Five 9s Digital, Jones Lang LaSalle and XO Communications.

Five 9s Digital is a firm experienced in site selection studies for mission critical multi-tenant facilities, Jones Lang LaSalle is "an international real estate services firm with practice specialties in project management and mission critical solutions, and XO Communications is a leading nationwide provider of advanced communications services for businesses, enterprises, government and carriers with diverse long haul fiber routes into and out of Minnesota," according to a city press release.

There are several uses envisioned for the facility, including what is referred to as a ‘meet point’ or ‘carrier hotel’ for telecom companies that typically hand-off data from one to another somewhere along a fiber-optic route. According to Eagan Communications Director Tom Garrison, “Generally, there is a common point where their technology infrastructure will all come together and meet.”

Additionally, it is recommended that most companies have disaster recovery locations or redundant data centers; if a disaster or failure occurs at one site, the company’s data remains safe while data traffic is routed to (and through) an alternate data center.

Most states have at least two such facilities and many have several more. Minnesota is one of the few states with only one, which is located in downtown Minneapolis. 

A facility, such as the one the city envisions, may be especially attractive to smaller companies that do not have multiple locations, or the budget to purchase equipment for multiple data centers.

The team conducting the study will scout Eagan for a location that would be as disaster-proof as possible, including controlling for such variables as airplane traffic, susceptibility to weather events, or proximity to hazardous materials.

All the indications are that this is long overdue. During the interview and selection process everyone the city staff interviewed shared Eagan’s opinion that the Twin Cities are significantly underserved in this regard.

Fortunately, the city will not need to use any tax dollars to pay for the study.

The three companies selected to conduct the study were chosen for their expertise and for their potential ability to build and run a privately-owned specialty data center, such as the one being studied. According to our selection criteria, we're not only looking for the company who best meets all the expectations in the RFP (Request for Proposal), but also who can get things done, Garrison said.

“If they get to the point of saying things look promising, they will develop a conceptual design,” Garrison continued. “If they determine there is a sufficient business case to success, we have given them a first right of refusal to go ahead and build it.”

Eagan City Administrator Tom Hedges said, “A colocation data facility [in Eagan] stands to benefit the whole region.” Hedges went on to explain that while Eagan brings in 50,000 people every day for work, and is home to corporate giant Thomson Reuters, even an individual who works from home depends on uninterrupted access to technology.  

Such a facility in Eagan will help the city retain local companies and businesses and, according to Hedges, “is a wonderful initiative to have in our economic development toolbox.”