Digiplex: Future-Ready Data Centers

Abstract

This case is based on DigiPlex, the largest data center provider in Scandinavia. The company plans to build another data center just outside of Stockholm, Sweden. The case asks students to evaluate a project plan and use the data to diagram the critical path. The case opens with DigiPlex chairman Byrne Murphy at the negotiation table with the key anchor customer needed in order to get his newest project off the ground. The project has already been delayed 41 weeks, and Murphy learned that its client might want to postpone the handover another several weeks. Murphy had long trusted critical path analysis during moments where key decisions needed to be made around both engineering problems and economic questions in projects. Murphy had to decide how much more risk and expense they would be taking if the target delivery date changed. In order to answer that question, Murphy referred back to the critical path to rethink it. Excerpt UVA-QA-0880 Oct. 3, 2017 DigiPlex: Future-Ready Data Centers With negotiations running almost a year behind, DigiPlex's Chairman Byrne Murphy was back at the table with the key prospect for the anchor customer needed to get his newest project off the ground. DigiPlex was the largest data center provider in Scandinavia and had plans to build another data center just outside of Stockholm, Sweden. The analysis Murphy relied on indicated that both parties had to agree to a move-in date of the first weekend of April 2015, which was coming up faster and faster. In the meeting, Murphy learned that DigiPlex's client, a large financial institution, would only move over the first weekend in April or would like to postpone the handover to January 1, 2016. At this point, Murphy asked his director of development to step outside the room with him. Murphy had long trusted critical path analysis during moments when key decisions needed to be made around both design problems and economic questions. “The barrier to entry in the data center world is credibility,” Murphy said. “It's no longer the fiber, nor power, nor financing, but rather: Do you have credibility and can I trust you with my mission-critical equipment and data in your center?” Meeting project deadlines was the most fundamental way of preserving credibility. Murphy asked his development director what was needed to do to keep the project on track. The client's move-in date was dependent on contract signing, which was already delayed. “Let's see those charts,” he said. “What is the impact if we suffer another delay?” Byrne Murphy and Critical Path Analysis . . .