Phynyx Consulting Services
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Services

NetSuite & Celigo Implementation Services

Assessment, Process & Architecture

A 360-degree assessment designed & customized for your specific needs.

Business Requirements and Documentation

Evaluating, mapping, questioning, and thinking outside the box. Real timeline for your implementation & Integrations

NetSuite Implementation & Customization

Ensure your implementation goes live hitch-free with a detailed process review by a team of experts.

Shopify ↔ NetSuite Integration

Shopify is one of the most adopted webstore platforms. Connect your Shopify stores (single or multiple) with NetSuite ERP.

Amazon – NetSuite Integration

Connect your Amazon Store (seller account) with NetSuite ERP. Experience the power of integrations that accelerate your performance.

3PL – NetSuite Integrations

Get your NetSuite ERP integrated with any 3PL using any format – EDI, XML/JSON, CSV, other ones. Exchange of Transactions from 3PL to NetSuite

Specialized Asset Appraisals

At PHYNYX Consulting, we take pride in being a leader in the field of technology appraisals and valuation. We specialize in the assessment of all types of technology assets, ranging from software applications to complex hardware systems, and everything in between. Our extensive technical and commercial knowledge allows us to provide expert insights and valuable guidance to our clients.

When it comes to technology appraisals, we understand that each asset is unique and requires a customized approach. Our team of experienced professionals takes the time to thoroughly evaluate each asset, considering factors such as market demand, functionality, and potential for future development. We utilize advanced appraisal methods and tools to ensure that our clients receive accurate and reliable valuations.
Our Data Center Services

Data Center Appraisal

In the United States, there is a rapidly increasing demand for data center appraisals, which involve evaluating the facilities or buildings used to store internet servers or other data-based equipment. This demand is being driven by the need for greater data storage capacity to support a range of online services, including banking, social media, artificial intelligence, 5G, and others. Typically, these buildings are situated within industrial parks, but are custom-designed and feature redundant or backup components to ensure their reliability and functionality.

Our Evaluation Criterias

Few notable standards for the design of data centers

Security, Fire Protection – To ensure the safety of the data stored within the center, high levels of security and fire protection measures are necessary. This typically includes CCTV and security patrols, fencing, security guards, and strict entry requirements. For fire protection, advanced systems such as sprinklers, mists, and chemical suppression are often employed.


Cooling – Robust cooling systems are also essential to keep the servers from overheating. Backup systems are typically in place to ensure continued operation in case of primary system failure, and airflow within the data center is carefully monitored.

Power Sources – Due to the heavy electricity consumption of the servers, reliable power sources are critical. Backup systems, such as battery banks and diesel or gas turbine generators, are in place to automatically initiate in the event of a power outage. In many cases, there are also two sources of primary power or connections to the power grid.


Internal Equipment – The internal equipment, mainly consisting of servers that can be easily expanded or moved, is not typically considered in the appraisal of the data center as it is not fixed to the asset itself.


Raised Floor – Finally, a raised floor is an important component that allows cables to be fed through the floor of data centers. This enables efficient cable management and organization within the facility.

Type of Data Centers

Types

Modular Data Center – A modular data center is a flexible option that can be easily expanded or reduced in size to accommodate changing client demand. Often pre-engineered, these data centers may be constructed from containers or shipping containers for easy transportation.


Green Data Center – Green data centers prioritize reduced emissions, often leveraging outside air for cooling and locating in arctic climates. Renewable energy sources are also frequently utilized.


Data Center REITS – While not a specific type of data center, Data Center REITs (Real Estate Investment Trusts) are becoming an increasingly popular investment option. These funds are positioned to benefit from future growth in demand driven by emerging technologies such as 5G and AI. While most are located in the US and Europe, some real estate funds in Latin America have also invested in data centers as part of their broader stabilized asset portfolios. Notable examples include funds managed by PEI, Visum, and FUNO.

Our Approach

The way we approach things...

When appraising data centers, the cost approach may be applicable since most are relatively new and custom-built. However, special attention must be paid to developer profit, which may be higher than other projects due to the asset's special use and perceived risk.

The sales comp or market approach can be challenging in Latin America since there are few data center transactions beyond build-to-suit deals. In such cases, a comparable sale can be extracted from those transactions.

Income capitalization is a useful method for evaluating data centers since it reflects the way investors would purchase such assets. However, contracts for data center space to tenants may include fixed portions and a percentage of sales, making analysis and projection challenging without an operating history.

The discounted cash flow (DCF) method can help determine the future net cash flows of a data center. However, due to the asset class's relative newness, the future is less certain compared to other property types such as office or retail. While demand is likely to grow in the short and medium term, advances in technology may reduce server footprints or affect the asset class in unforeseen ways. On a positive note, data centers can be easily converted to other industrial uses in the future.
Factors

Value Impacting Factors

Contracts for data center space are typically signed by companies dedicated to providing capacity for users. These contracts often have a long-term duration and may include a variable component related to the amount of space or capacity that can be sublet to users.

The location of a data center is crucial in determining the efficiency of its operations. Factors such as the cost of energy and climate play a significant role in this regard. Additionally, the proximity of the data center to its users is also a crucial factor to consider.