A Major U.S. Bank

Project Details

Client: A major U.S. Bank
Location: Hong Kong
Topline: The Client, a major U.S. bank, had two aging Data Center sites which were no longer fit for purpose. CBRE was able to negotiate flexible contractual agreements to cater for the bank’s future Data Center requirements. At the end, the client moved into a new Data Center, and its existing Data Center was updated within only 15 months.

The Challenges

CBRE were instructed by the Bank to assist in their Hong Kong Data Center strategy as two of their aging Data Center sites were no longer fit for purpose.

Solution & Outcome

Solution

CBRE recommended an auditable search process to find a site which met the client’s technical, security, and operational specifications.

By leveraging the market, CBRE was able to negotiate service fees 24% below average market rate.

CBRE also negotiated extra flexibility into the contract which will allow them go grow and develop the site as required, and stringent Service Level Agreements to ensure the Data Center was operated to the Client’s standards.

As just one relocation site matched the criteria, CBRE helped the client negotiate a strategic renewal and restructure at one of their existing sites.

This included significant saving of >35% against their passing service rates upon renewal, with flexibility to expand or exit the site during the term of the contract at no additional cost or penalty.

The operator also committed to upgrading their infrastructure to meet the client’s latest technical requirements. This was completed within 15 months.

Outcome

Savings of more than US$16MM against market over the term of contract for both transactions.

A new Data Center that meets all of their requirements.

The opportunity to develop their existing Data Center site to support their business development into the future.