CO2 Partners Risks Associated with Carrier Hotels

Mark Feil Bio 30 years Telecommunications industry experience – Vice President Frontier/Global Crossing/Broadwing – President WanConnex LLC – Led $100M XO Communications Data Center Business Unit – Eagan Tech Working Group – Carrier Hotel / Data Center Feasibility study CO2 Partners – Executive and Leadership Coaching – Strategic Planning and Organizational Assessment – Technology Consulting and Change Management – CO2partners.com

Carrier-Hotel: Defined A carrier hotel is a secure physical site or building where data communications media converge and are interconnected. © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 3

Evolution of the Carrier Hotel CLECs (Competitive Local Exchange Carrier) – Allowed for direct inter-carrier connections (Peering) – Built to save money – Consolidation Regional PoP Locations – 350 Cermak – 250 Marquette – th Street – th Avenue Challenges for MSP – Single point of failure – Cost to re-architect © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 4

 The Twin Cities only have a single true ‘Carrier-Hotel’ (511  The Twin Cities only have a single true ‘Carrier-Hotel’ (511 11th Avenue South)  The Twin Cities are currently a regional telecom ‘funnel’  All regional network traffic relies heavily on the 511 building Major US Carrier-Hotels © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 5 NYC Chicago Los Angeles Dallas MSP Miami Chicago 350 E Cermak 600 S Federal NYC th Ave 60 Hudson Los Angeles One Wilshire 900 N Alameda 818 W 7 th Miami Miami NAP 36 NE 2 nd Dallas 2323 Bryant 1950 Stemmons 400 Akard

Carrier Transport Core/Edge Routing/IP – Based on original MAEs (Metro Access Exchanges) & NAPs (Network Access Points) – Generally Peering locations Logical and Physical diversity – Disaster Recovery & Separation – Last mile, Middle mile, Long Haul Fiber Coaxial Copper Wireless Network Grooming – What is it? – Unintentional misinformation © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 6

Current Challenges Multiple single points of failure nationally – Many major cities (NY, LA, Dallas) are moving to dual Carrier-Hotels More than just a Twin Cities problem – Major intersections drive diversity (Dallas & KC) – Most of the surrounding region routes through 511 Financial constraints – Large carrier embedded bases & architecture Tier 3/4 Data Centers with 1 carrier hotel © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 7

Thoughts on the Future A Second Carrier Hotel – Follow the lead of other Major Metros Geographic Diversity – Distance of separation – Diverse utility Last Mile, Middle Mile, & LH – Will need multiple diverse paths Smaller Carriers – Will move first – Lowest cost to implement © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 8

Next Steps Broadband Task Force – Consolidate efforts on behalf of Public Sector – Use Eagan Tech Working Group model of public/private – Communications plan Specific Network Designs – White papers – Carrier relations – Consumer advocacy Other? © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 9

SE Minneapolis Data Center (MSP-2)  DataBank’s 90,000 sqft facility in Eagan, MN - Purpose-built data center & ‘Carrier-Hotel’ – 20 Miles from 511 Building – Alternative power provider in Dakota Eletric  4 large ‘Data Halls’ encompassing over 50,000 sqft of data center space for multi-tenant & customized deployments  20MW of on-site power availability (10MW-A & 10MW-B) fed through two different sub- stations  Two large & diverse ‘Meet-Me-Rooms’ will house a multitude of Carriers and Network providers  Direct peering point for AccessEagan fiber network deployed by the City of Eagan © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 10

Carrier-Hotel Designed Facility © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 11 North MMR - B South MMR - A  Carrier Neutral & Carrier Friendly  Diverse Entry Point through 4 Comm- Vaults to access multiple fiber routes  Large Redundant MMRs & Peering Environments  Ethernet-based Peering  Low-cost Cross Connections

Local Fiber Network  Large concentration of on-net carriers/providers  City of Eagan has deployed a large fiber network to enable regional business connectivity  MSP-2 will be AccessEagan’s new hub & peering location 12 © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary

Long-Haul Connectivity  DataBank’s MSP-2 will offer providers in the Twin Cities an alternative peering point with state-of-the-art design & infrastructure  MSP-2 will offer centralized MMRs & on-site technical expertise  Redundant entry point for long-haul carrier connectivity © 2015 DataBank, Ltd. | All Rights Reserved | Confidential & Proprietary 13 DataBank MSP Building Denver Kansas City Chicago  MSP-2 will be both Carrier-Neutral & Carrier Friendly

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