Defining Requirements Before the Search Begins

Dropbox’s data center site selection starts internally: the capacity engineering team quantifies the cabinet counts needed for the services to be supported. From that, the datacenter engineering team locks down three core parameters:

  • Power. Based on historical usage by existing hardware and projected needs of future equipment, expressed as a kW or MW allocation covering total expected IT load of cabinets and network gear.
  • Space. Enough room for varied cabinet configurations following industry practices (4-foot cold aisles, 6-foot hot aisles, etc.).
  • Time. The lease commencement date — when capacity must be online — anchors the entire schedule.

With requirements fixed, Dropbox taps its existing network of providers to see who is active in a desired market. Responses often surface constraints, like a supplier that can meet power needs but not until a later quarter. Those answers determine who moves on to the full RFP stage.

Issuing the RFP and Setting Efficiency Stakes

The full RFP document captures facility-level expectations. Physical parameters include:

  • Supporting infrastructure design. Dropbox adheres to Uptime Institute Tier III guidelines; any deviation must be flagged by the landlord for evaluation.
  • Cabinet weight, dimensions, and quantity. Flooring must support equipment both during moves and when deployed in groups.
  • Network design. The focus is on ingress/egress of traffic: whether the provider has Dropbox’s preferred carrier, nearby alternatives, and whether connections can be delivered with desired redundancy.

Commercial terms — rent, utilities, incentives — are gathered early to set internal expectations and track negotiation progress.

PUE has become a harder constraint in recent years. Dropbox treats it as a cost multiplier on consumed power; the lower the multiplier, the more efficient the facility. The company pushes for contracts that bake in a lower PUE, often with stipulations around customer-installed containment and electrical consumption thresholds. On-site practices matter too: eco-friendly cooling units, disciplined hot/cold aisle separation, and proper airflow containment are expected.

Technical Questionnaires Surface Real-World Gaps

After RFP responses arrive, Dropbox runs a bid leveling process paired with a technical questionnaire. Questions probe space, power design, cooling, network, history, environmental risks, security, operations, and staffing. The answers often expose issues that wouldn’t appear in a proposal:

  • Reduced UPS redundancy. One provider used an inertia wheel instead of standard UPS, delivering only 30 seconds of emergency power versus five minutes — drastically compressing generator startup deadlines.
  • Construction delay risk. If the need-by date sits right at power availability, any slippage in equipment delivery or installation means missed deadlines.
  • Inadequate monitoring. Without automated facility-level alerts (generators, UPS, air handlers), responses to incidents rely on humans, introducing delay and error risk.

Site Walks and Numeric Scoring

Candidates are narrowed to four to six providers for in-person validation. Site walks verify claims made in questionnaires. Dropbox has found mismatches this way: a provider promised a dock that could handle a full 53-foot trailer but required a forklift or tailgate, and one completed facility had exposed exterior fiber optics plus wildlife living inside the building.

Each facility is then scored numerically across weighted parameters:

  • Space. Adequacy for rack count, cabinet loads, dock suitability, and lift needs.
  • Power. Redundancy, grounding, upstream redundancy, and efficiency.
  • Cooling. Redundancy, efficiency, and whether operation is water-free.
  • Network. Campus and building-level redundancy, physical separation, and pathway routing.
  • Security. Cameras, protocols, and retention of video/log data.
  • Site hazards. Flood zones, seismic activity, flight paths.
  • Operations and engineering. DCIM monitoring, 24/7 on-site staff, and manufacturer SLA coverage.
  • Logistics. Handling of scheduled and unscheduled shipments and carrier pickups.

Dropbox-specific factors also weigh in: fiber pathway distance to POPs, proximity to existing facilities, and staffing considerations.

External fiber routes get joint review with the network team. Dropbox evaluates on-net and near-net providers, then solicits circuit pathways between locations and inspects proposed routes for shared fate or single points of failure where two circuits collapse into one corridor. Route discipline matters — a vendor may deliver a path different from what was agreed.

The scoring system assigns each candidate a numerical value, highlighting strengths and deficiencies against requirements. That narrows the field to two — sometimes three — sites that receive counter proposals.

Lease Negotiation: Where the Numbers Get Agreed

Once a shortlist of facilities has passed technical and physical validation, Dropbox moves to commercial negotiation. The goal is to demonstrate to each provider that we have done our homework, and that starts with understanding exactly which levers can be pulled in a data center lease. The following commercial terms are the ones Dropbox typically focuses on:

  • Rental rate. The cost of power and space, expressed in $/kW/month. Facility providers set this rate based on their own priorities—business objectives, revenue targets, rate projections, market alignment, and similar factors. Understanding those priorities can reveal where rate reductions might be possible.
  • Utility rate. The cost of electricity itself, measured in $/kWh.
  • Rental escalator. The annual percentage by which rent increases over the lease term. Macroeconomic trends influence this figure to some degree.
  • Rent ramp. The rate at which contracted power increases over time. There is usually substantial flexibility here. Dropbox has recently begun proposing a ramp down at the end of leases to better align contracted dollars with actual production usage.
  • Power usage effectiveness (PUE). The multiplier a provider charges to cover cooling and operational expenses beyond a tenant’s base electrical consumption. This is partially negotiable, but depends on the facility’s overall efficiency and the tenant’s willingness to participate in efficiency best practices. A firm commitment on that front can help.
  • Incentives. Extras that go beyond the facility itself, such as rent abatement (for example, the first three months free), a tenant improvement allowance (the landlord offsetting installation costs), or dedicated office or storage space for operational staff. Depending on market conditions, these may be offered upfront.

After sending a counterproposal, Dropbox waits for the provider’s reply and then decides whether to proceed. If the commercial terms are acceptable, the remaining step is signing the contractual agreement—ideally through Dropbox Sign—and preparing to move in.

That completes the site selection process as Dropbox practices it. The sequence again:

  1. Identify what you need early.
  2. Understand what is being offered.
  3. Validate the technical details.
  4. Physically verify each proposal.
  5. Negotiate.

Applied consistently, this process has allowed Dropbox to negotiate best-in-class rates relative to the market across its last three selection efforts, while also promoting improved efficiency and greater contract flexibility. The specifics will vary by organization, but the underlying structure—early identification of needs, careful technical and physical validation, and informed negotiation—should be adaptable to most businesses facing a data center decision. It is a process that works well for Dropbox, and one that may be particularly useful for teams going through site selection for the first time. The approach makes what can seem like a daunting undertaking more navigable.