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The Data Center Divide

Summit County

Strongly Pro-Data Center Policies

Summit County’s enacted agreement provides public funding and a site for a large data center for the city to operate, benefiting this project specifically without broadly easing development for others.

current law · County project: City of Fairlawn data center site and the approximately 125–130-mile fiber ring within Summit County
Would establish a cooperative framework for Summit County and Fairlawn to develop a 125–130-mile redundant high-speed fiber ring and data center, with the County funding and constructing the infrastructure and the parties forming a council of governments to operate it.Summit County–City of Fairlawn Summit Connects cooperative agreement legislation

What this means

The agreement would provide public funding and a site for a 20,000-plus-square-foot data center, and arrange for the city to operate it. These are substantial benefits for this specific project, though the agreement does not broadly ease development for other data centers.

People behind it

  • Sponsor of the Summit County resolutions and ordinances listed on the June 13, 2022 Council agenda.

  • Movant for Council motions M-022-2022 through M-025-2022.

  • Co-sponsor with Executive Shapiro of Resolution 2022-158.

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  • Offers Fairlawn Ordinances 2022-036A and 2022-047.

  • Party to the Cooperative Agreement and responsible for developing and financing the fiber ring and data center project.

  • Party to the Cooperative Agreement and responsible for providing the data-center site and operating, managing, and maintaining the project assets through the COG.

Restrictions & requirementsHide restrictions & requirements11
  • The project must include a secure data center of more than 20,000 square feet, along with parking improvements, a substation, redundant utility and fiber connections, security fencing, and other security improvements, increasing the required construction scope and cost.

  • The County must procure engineering, architectural, construction, construction-management, equipment-design, and vendor contracts in accordance with all laws applicable to County procurement, with the City assisting in reviewing proposals and bids.

  • Before the data center site can be leased, the City must split or subdivide the site from the larger parcel, and the County must first create the Summit-Fairlawn Broadband Council of Governments.

  • The County must initially pay the data center project costs, estimated at $20 million, and recover those costs through long-term leases to the COG; the COG must pay equipment rent beginning in the first month, while site and improvements rent begins in the 61st month.

  • The COG is responsible for operating, managing, and maintaining the data center, including utilities, insurance, taxes and assessments, maintenance, repairs, and capital replacement costs.

  • Operation and management of the data center are assigned to the City under an agreement requiring reimbursement of actual staffing costs, up to an additional 10% for indirect costs, and third-party goods and services costs; existing-employee compensation is subject to COG Board approval and available revenues.

  • Any public or private use of data-center space or equipment requires COG-established rates, fees, terms, and agreements, and no such agreement may be entered into without COG Board approval.

  • During the agreement term, the City and County may not maintain a separate data center apart from the Data Center Improvements, requiring their operations to use the jointly developed facility.

  • The City and County must each annually appropriate at least $500,000 in general funds to support COG operating shortfalls, and they may be required to contribute additional funds beyond that amount.

  • The County's data-center property and equipment may not be sold, transferred, or further leased during the applicable lease terms without the COG's written consent, except under the agreement's specified sale or dissolution procedures.

  • The COG's data-center leases impose long operating commitments: the site and improvements have initial terms of 30 years, while the data-center equipment has an initial 10-year term, with deferred rent carried forward rather than eliminating the obligation.

Benefits & exceptionsHide benefits & exceptions15
  • The County will initially pay for the Data Center Project, estimated at $20 million, using its General Capital Improvements Fund or other legally available funds; the County will recover its actual eligible costs through leases to the COG rather than charging the City directly. The County shall initially pay all costs associated with the undertaking of the Data Center Project

  • Fairlawn will lease the data-center site to the County for 30 years plus the construction period, capped at 32 years and six months. Base rent begins only in the 61st month after completion and installation, at $2,636.67 per month, subject to additional costs such as maintenance, utilities, insurance, and taxes. base rent payments to be paid ... commencing in the sixty-first (61st) month

  • The County will design and construct a secure data center of more than 20,000 square feet, with parking, a substation, redundant utility and fiber connections, fencing, and other security improvements. constructing a secure, 20,000+/square feet data center

  • The County will acquire and install data-center equipment, including power systems, generators, uninterruptible power supplies, switching and routing equipment, cabling, racks, HVAC, security systems, and backup dispatch equipment. all necessary and appropriate furniture, fixtures and equipment

  • The County and City will jointly manage the project, with the County procuring design, construction, engineering, equipment, and project-management contracts under applicable procurement laws; the City will assist in reviewing proposals and bids. shall be assisted in the review of proposals and bids

  • The agreement creates a county-city council of governments that can offer public and private parties space in the data center, data storage, equipment use, and related services, with the COG Board setting the applicable rates, fees, and terms. establish the rental rates, fees, costs and other terms and conditions

  • The City will operate, manage, and maintain the data-center improvements and equipment for the COG, using City employees or third-party vendors, with reimbursement for specified staffing, vendor, materials, and service costs. the City will undertake the ongoing operation, management and maintenance

  • If annual COG revenues are insufficient, unpaid base rent for the site, improvements, equipment, and fiber ring can be deferred and carried forward without constituting a default; however, certain existing-employee staffing costs are discharged if they cannot be paid in the applicable year. the same shall not constitute an event of default

  • The County will provide the COG with a $2 million revolving credit line for start-up and operating costs, with no interest for the first five years and 3% interest thereafter, available for up to 20 years. a revolving line of credit to the COG in the amount of $2,000,000.00

  • The City and County must each annually appropriate at least $500,000 in general funds to support the COG's operating-cost obligations, with additional appropriations required if their obligations exceed that amount. each annually appropriate a sum of at least $500,000.00

  • The County will develop an approximately 125-to-130-mile redundant high-speed fiber ring and associated equipment, providing major connectivity infrastructure for the data center and other users. an approximately 125-130 mile redundant high-speed fiber optic cable ring

  • The County estimates the Fiber Ring Project at $35 million and intends to pay for it entirely with ARPA funds; the County is not entitled to recover those project costs from the City or otherwise. pay for the Fiber Ring Project entirely out of ARPA Funds

  • The County is responsible for obtaining permits, public-land agreements, utility arrangements, easements, licenses, and other access rights needed to build the Fiber Ring, and may pursue eminent-domain proceedings when necessary. applying for and obtaining any necessary permits

  • During the agreement's term, the City and County generally may not sell, transfer, or further lease the data-center site, improvements, equipment, or Fiber Ring without the COG's written consent, subject to specified sale and dissolution provisions. shall not ... sell, transfer, further lease, or otherwise dispose of

  • The City and County agree to use the data center and Fiber Ring for their operations and generally may not maintain separate data centers or separate fiber serving the same needs when the cooperative facilities can meet those needs; existing fiber and fiber serving different purposes or areas may be retained. neither the City nor the County shall maintain a data center separate and apart

Sources

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