Praying for a new power crisis

By PAULA OLIVER

In the heart of an innocuous Albany building, a high-security telehousing centre is emerging as four entrepreneurs anticipate a summer power crisis.

Acenet's just-completed 1115 sq m centre is designed to house the computers of large organisations whose systems could fail if there is a repeat of Auckland's infamous 1998 power blackout.

By renting space for systems in the centre, businesses reduce the risk of costly downtime after a disaster.

Acenet consultant Philip D'Ath says it is the largest independent telehouse in the country, and he is confident it can compete with those set up by Telecom, Clear and Telstra Saturn.

"Our advantage is that we will have all three major telco cables coming into the one facility. That's unlikely to happen in one particular telco's building, and it makes us almost bulletproof because we can switch around if the worst comes to the worst."

Telecom and Clear feeds are already linked in, and he hopes to have Telstra Saturn hooked up by the end of the year. The building's capacity is one gigabit a second, and its first client will begin moving equipment in shortly.

Given that space is rented out in racks, at $800 (plus GST) a rack per month, Mr D'Ath and his three colleagues appear to be poised to take advantage of a growing market.

But it has not all been easy.

Mr D'Ath says each of the four men put money into the project, but to get it off the ground they also needed a bank loan.

"It was very tough talking them into it. But we went along with the first contract already signed, giving guaranteed revenue, and an asset to our name."

Acenet has a long-term lease on the large concrete building, and Mr D'Ath estimates that the refit cost about $2 million.

There are diesel generators to ensure power is available at any time, plus early smoke-detection apparatus and air conditioning. Security is strong, but Mr D'Ath says any client can arrange access, either with an escort or with an approved card.

New Zealand could become a popular destination for overseas companies' computers, he says, and the weak kiwi only strengthens the opportunities.

"Usually it's impossible to sell direct services like this to places like the US, but it's becoming easier as the dollar weakens."

With the Southern Cross cable due to switch on this year, the increased available bandwidth, at a bargain price, could also attract overseas clients.

Mr D'Ath's three colleagues have a mix of skills. Two are involved in electrical and data communications, and the other has experience in networking.