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Information Technology Landscape in Nations

Infrastructure Needed for a Park

Infrastructure: Requirements for IT-based technology parks tend to focus on Internet connectivity, power generation, transportation options and cultural environment.   Other infrastructure may be needed for specialized industries.  A park's infrastructure and service offerings can be critical to set it apart from competitors.

The infrastructure needed to support a technology park can vary widely based on the Park's location and the services provided by the park.  For a technology park based on information technology, good Internet connectivity is clearly a core requirement.  This requirement generally extends to the availability of fiber optics networks offering at least megabit transmission speeds and redundant connectivity, either through multiple fiber providers or through a combination of different transmission media, such as fiber optic cables and satellite transmission. 

Additionally, a reliable and abundant power supply is necessary to run large data centers, which typically consume 50W/square foot.1  With the average U.S. data center estimated at 30,000 square feet, this corresponds to 1.5 MW per data center,2 475 MW for all data centers combined, or approximately 0.12% of the entire energy output of the United States.3  For a country such as India, with an estimated 103,445 MW as of 1999,4 this is a more significant burden, representing 0.45% of the total energy output.

 Most technology parks, however, cannot survive on Internet infrastructure alone.  A technology park is a combination of technology infrastructure and pleasant surroundings.  The ambience of a technology park might include picturesque scenes of mountains, beaches or gardens and stimulating cultural activities in the surrounding area that entertain a well-educated workforce.  The web pages for most technology park environments often dedicate a large portion of their site to local attractions, such as museums, sports teams and nightlife.  As many remote areas are using technology parks as a means to attract investment, the cultural requirement can be a difficult one to satisfy.  A Time article puts it best:

    Perhaps no two words strike more fear into the heart of a business traveler than science park. These soulless industrial developments are invariably far out of town, since cheap land tends to be their primary raison d'ĂȘtre. Finding a decent hotel is usually not a problem, but a club sandwich from room service can be the culinary high point of a visit. And cultural stimulation tends to come from pay-per-view movies.5

Given the global nature of business today, another important component of a technology park is proximity to transportation infrastructure, particularly airports and highways.  Frequent flights and short distances to major international cities are a prerequisite to attract significant foreign investment.  Public transportation and rail networks can also be important, particularly when a technology park is located near a populous city.

Special-purpose facilities may also be needed depending on the nature of the Park's activities and the needs of the Park tenants.  For intensive manufacturing operations such as semiconductor chip manufacturing, access to chemical suppliers, metals and a large supply of fresh water are important.6  Other parks might offer basic administrative and secretarial services or convention centers capable of hosting large conferences.  Many Parks advertise as many services as possible to attract business of all varieties.  Taking into account the amount of unused space in existing technology parks, expansion efforts underway in many parks and the number of new parks being planned, the service offerings of the park may ultimately become the distinguishing factor in attracting investment.

REFERENCES

1. Tadpole-Cycle, "Tadpole and Platform Computing Launch "PowerBack" To Reduce Energy Costs For Power-Hungry Data Centers," September 25, 2001, http://www.tadpole.com/cycle/newsevents/press/2001/092501.htm, visited December 13, 2001.

2. Id.

3. Mazurkiewicz, Greg, "Data Center Power Usage Exaggerated," http://www.achrnews.com/CDA/ArticleInformation/Energy_Matters_Item/0,4186,659 82,00.html, visited December 13, 2001.

4. Energy Information Administration "Country Analysis Briefs: India," http://www.eia.doe.gov/cabs/india.html, visited December 13, 2001.

5. Stratte-McClure, Joel, "A French Exception to the Science Park Rule," http://www.time.com/time/europe/magazine/2000/1002/oyot.html, Time Europe, October 2, 2000, visited December 12, 2001.

6. See generally, Intel Education, "How Chips are Made," http://www.intel.com/education/teachtech/learning/chips/introduction.htm, visited December 14, 2001.

 


Copyright 2001.  Anne Theodore Briggs and Stephen Watt
This report was created in Impacts of National Information Technology Environments on Business, an MBA class of American University, Washington, D.C.