[1st-mile-nm] PNM Data Center & Fiber Network

[Richard Lowenberg]

>From an April article:

PNM offers buildings, partnership to Diné

www.gallupindependent.com/2008/April/041708pnm.html

By Kathy Helms, Diné Bureau

WINDOW ROCK ? PNM Resources is getting out of the landlord business and
refocusing on its utility business. At the same time, it is looking to
outsource some of its information technology activities and is seeking a buyer
for its Aztec Trading Building and Data Center in Albuquerque.

PNM representatives believe this presents a great opportunity for the Navajo
Nation and is hoping to cultivate a partnership by selling the buildings to the
Nation and then leasing back the space it needs. A nondisclosure agreement is
now in the works.

David Harkness, Cathy Newby, Stuart Grimes and Michael D?Antonio ? all of
PNM ? presented their offer Tuesday to the Budget and Finance Committee,
which will tour the facilities on Friday. Resources Committee toured the
buildings last week and spoke in support of the purchase during a special
meeting Monday afternoon.

Harkness said PNM is selling its real estate with significant unused capacities.
The Aztec Trading Building, which is 55,000 square feet, houses its trading
group. The Data Center is at about 25 percent occupancy.

The Data Center building, when built, was significantly larger than what PNM
needed.

?At the time we were doing a lot of merger and acquisition activity. It looked
like a good thing to do, but at this time, the building is only about 25 to 30
percent populated with PNM technology equipment, as well as the staff that
maintains it,? Harkness said.

With some of the budget challenges PNM is going through, in addition to its
pending rate case before the Public Utility Commission, it would like to move
as quickly as possible and is looking at value-added partnerships, such as with
the Navajo Nation and Science Applications International Corp., whose largest
customer is the U.S. government.

Regarding Navajo, Harkness said, ?It?s a revenue opportunity for us to lease
that space from you as well as any other companies that want to lease that
space.?

He said SAIC would be a good partnership for the Nation. ?They have expressed
an interest in helping in any way they could be of service to help the Navajo
Nation become more equipped, and training the Nation on how to operate such a
facility.

?Longer term, we really see a good opportunity from a fiber optics/exchange
agreement moving forward. The connectivity of the Data Center now is really
focused from connectivity into Albuquerque as well as the rest of the fiber
optic networks.?

The state-of-the-art Data Center was built two years ago and was the first Leeds
Silver Certified ?green? building in the country. It has protected power and
air conditioning and is located on a secured campus, with numerous layers of
security to get into the building, work space, operation control center, and
technology core, Harkness said.

?We really think this is a real opportunity for PNMR as well as SAIC to work
together as a job-shadowing and learning environment as we go forward.?

Cathy Newby of PNM Tribal Relations said that if the Nation is going to pursue
gaming, it needs an off-site data storage facility. Harkness said the location
would be great for housing the infrastructure needed to monitor the casino
industry.

Other possible tenants, according to PNM, include New Mexico pueblos, the state
of New Mexico, the federal government, University of New Mexico as well as UNM
Hospital. PNM also has had inquiries from states looking for ?disaster
recovery? sites. ?New Mexico is a tremendous location for disaster
recovery. We don?t have very many natural disasters here,? Harkness said.

?So there really is a guaranteed revenue stream when you first come in the
building. This is something that day-one, you get a return on your
investment.?

Additional long-term benefits deal with fiber optics.
?We have connectivity to the Lambda Rail, which provides the Internet access,
we?ve got connectivity to the Carrier Hotel in downtown Albuquerque, as well
as connectivity to the UNM Distance Learning/Healthcare facility,? Harkness
said.

Stuart Grimes of the Telecommunications Department said PNM has about 400 miles
of fiber optic cable already run, which it typically uses to control its
switching stations. ?We have a fairly high concentration of fiber throughout
the Albuquerque metro area.?

Navajo Department of Information Technology is very interested in the fiber
optic system PNM has outside of Albuquerque, he said. One system extends to
just outside Gallup. PNM also has a fiber optic system that runs between
downtown Albuquerque all the way to San Juan Generating Station just outside
Farmington.

>From San Juan Generating Station, ?we have fiber optic that goes west to
Shiprock Substation. I?m told that we could tie it in with NTUA and possibly
get fiber out of that location and into Shiprock,? Grimes said.

PNM also has microwave/wireless Internet infrastructure at the Aztec facility.

?From Albuquerque, we have a microwave link that goes to Mount Taylor, and
from Mount Taylor, we have one that goes to Ambrosia,? he said. Another link
goes to San Juan County.


-- 
Richard Lowenberg
1st-Mile Institute
P.O. Box 8001, Santa Fe, NM 87504
505-989-9110;   505-603-5200 cell
rl at 1st-mile.com  www.1st-mile.com

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