Assessing Natural Disaster Risks: Essential Insights For Data Center Location Strategy

All data centers face some level of risk of natural disasters. It is therefore vital that data center operators effectively assess natural disaster risks in all the different regions where they operate (or want to operate). This assessment will provide the foundation for effective risk mitigation. Here is a quick guide to what you need to know.

Understanding natural disaster risks

Here are the 6 main categories of natural disaster risks globally and their potential impact on data centers.

Tornadoes: Tornadoes can cause extensive damage to data center facilities, including roof uplift, structural collapse, and debris impact. Power lines, cooling systems, and network infrastructure may be affected, resulting in service interruptions, hardware damage, and data center downtime.

Hurricanes/cyclones/typhoons: High winds, heavy rainfall, and storm surges associated with hurricanes can cause structural damage to data center buildings, roofing systems, and outdoor equipment. Flooding, power outages, and wind-driven debris can disrupt data center operations, leading to service downtime and potential data loss.

Floods: Floodwaters can infiltrate data center facilities, damaging servers, networking equipment, and power distribution systems. Water exposure can cause short circuits, corrosion, and hardware failures, leading to data loss and prolonged downtime.

Wildfires: Wildfires generate smoke, ash, and heat, which can infiltrate data center facilities and damage servers, cooling systems, and electrical infrastructure. Power outages caused by wildfires or grid failures can lead to service disruptions and data loss due to equipment damage or overheating.

Earthquakes: Earthquakes can cause structural damage to data center buildings, racks, and server equipment. Seismic activity may result in power outages, network disruptions, and physical harm to IT infrastructure, leading to service interruptions and data center downtime.

Volcanic eruptions: Volcanic eruptions release ash clouds, gases, and lava flows, which can pose risks to data center facilities located in proximity to volcanic zones. Ashfall can infiltrate cooling systems, damage server components, and disrupt power supplies, leading to equipment failures, service interruptions, and data loss.

The practicalities of evaluating natural disaster risks

It’s highly unlikely that the average data center operator will have the resources to undertake their own direct evaluation of natural disaster risks in an area. Instead, they will rely on expert sources such as relevant government agencies.

Government agencies are typically an excellent source of data on natural disaster risks since it is part of the government’s job to plan for them and manage their impact.

Furthermore, these bodies can often facilitate data-sharing agreements and provide updates on ongoing environmental changes. This ensures that risk assessments are based on the most current and comprehensive information available.

The benefits of working with local authorities

In general, whenever possible, it’s best to collaborate with a local authority in the specific area you are assessing. Local authorities maintain extensive, localized, databases on past disaster events, infrastructure inventories, and demographic information.

By collaborating with these authorities, analysts can access high-quality, region-specific data that may not be available through national or global sources. This data is crucial for creating precise risk models and simulations.

How natural disaster risk assessment influences business planning

Natural disaster risk assessment plays a key role in business continuity planning and overall risk mitigation strategies. Here are just five of the ways it guides business decision-making in these areas.

Identifying vulnerable locations

By mapping out areas prone to natural disasters, businesses can make informed decisions about where to site data centers (and other critical infrastructure).

Informing infrastructure design and upgrades

Effective, local risk analysis is crucial for designing buildings and systems that can withstand local hazards. For instance, in earthquake-prone areas, businesses can implement seismic-resistant designs and construction techniques. In flood-prone regions, elevating structures and improving drainage systems can mitigate water damage.

Enhancing emergency preparedness and response plans

By understanding the specific risks and potential impacts, businesses can create detailed response protocols tailored to different disaster scenarios. This includes establishing clear communication channels, designating emergency roles and responsibilities, and conducting regular drills and training sessions.

Guiding investment in redundancy and backup systems

Understanding the risks associated with natural disasters enables businesses to invest strategically in redundancy and backup systems. For data centers, this might involve setting up off-site backups in geographically diverse locations to protect against localized disasters. Additionally, businesses can invest in backup power supplies, such as generators and uninterruptible power supply (UPS) systems, to maintain operations during power outages caused by natural events.

Shaping insurance and financial planning

By quantifying potential losses from various disaster scenarios, businesses can determine appropriate levels of insurance coverage to protect against financial risks. Risk analysis also helps in negotiating better terms with insurers by demonstrating a proactive approach to risk management. Furthermore, it enables businesses to set aside financial reserves or establish contingency funds to cover unexpected expenses related to disaster recovery.