South Data Center Divestment or Lease Strategy
ID: RFI 31701-03604
• State: Tennessee
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Description
Background
The State of Tennessee, Department of Finance & Administration is considering options regarding its South Data Center located in Smyrna. This includes the potential sale or lease of the Tennessee South Service Center (South Data Center) and a transition to vendor-managed services for legacy state on-prem equipment.
The purpose of this Request for Information (RFI) is to gather exploratory information and solicit advice from the vendor community on the most effective divestment approach. The State seeks input on whether to continue owning and operating the data center or pursue a sale/lease arrangement, with a provision for leasing back space needed to keep legacy servers operational until operations have fully transitioned to the cloud.
Work Details
The RFI seeks responses that provide insights into:
1. Considerations for buying or leasing the TSSC.
2. Potential offerings of Managed Data Center Services if the TSSC is bought/leased.
3. Advice on selling or leasing the data center, including effective sale or leaseback structures observed in public sector organizations.
4. Experience in procuring and operating data centers, specifically in public sector contexts.
5. Pros and cons of selling the data center versus continuing ownership while offering co-location services to third parties.
6. Examples of successful data center divestments and attractive terms associated with them.
7. Macrotrends related to data center demand over the next five years and strategies employed by state or federal governments compared to private sectors.
Period of Performance
Responses to this RFI are due by 2:00 PM on May 21, 2025, with various deadlines leading up to this date for initial questionnaires, NDA submissions, and questions.
Place of Performance
The contract will be performed at the Tennessee South Service Center located in Smyrna, Tennessee.
Bidder Requirements
Respondents must submit an Initial Vendor Background Questionnaire and complete a Non-Disclosure Agreement (NDA) prior to receiving detailed building and technical specifications about the data center.
The State of Tennessee, Department of Finance & Administration is considering options regarding its South Data Center located in Smyrna. This includes the potential sale or lease of the Tennessee South Service Center (South Data Center) and a transition to vendor-managed services for legacy state on-prem equipment.
The purpose of this Request for Information (RFI) is to gather exploratory information and solicit advice from the vendor community on the most effective divestment approach. The State seeks input on whether to continue owning and operating the data center or pursue a sale/lease arrangement, with a provision for leasing back space needed to keep legacy servers operational until operations have fully transitioned to the cloud.
Work Details
The RFI seeks responses that provide insights into:
1. Considerations for buying or leasing the TSSC.
2. Potential offerings of Managed Data Center Services if the TSSC is bought/leased.
3. Advice on selling or leasing the data center, including effective sale or leaseback structures observed in public sector organizations.
4. Experience in procuring and operating data centers, specifically in public sector contexts.
5. Pros and cons of selling the data center versus continuing ownership while offering co-location services to third parties.
6. Examples of successful data center divestments and attractive terms associated with them.
7. Macrotrends related to data center demand over the next five years and strategies employed by state or federal governments compared to private sectors.
Period of Performance
Responses to this RFI are due by 2:00 PM on May 21, 2025, with various deadlines leading up to this date for initial questionnaires, NDA submissions, and questions.
Place of Performance
The contract will be performed at the Tennessee South Service Center located in Smyrna, Tennessee.
Bidder Requirements
Respondents must submit an Initial Vendor Background Questionnaire and complete a Non-Disclosure Agreement (NDA) prior to receiving detailed building and technical specifications about the data center.
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Overview
Opportunity Type
Request for Proposals (RFP)
Opportunity ID
RFI 31701-03604
Response Deadline
May 21, 2025
Past Due
Date Posted
April 16, 2025
Source
Source Notes
Source does not have a linkable page for this opportunity. To find the opportunity, go to the Source website listed above and search for the Opportunity ID.
Est. Value Range
Experimental
$5,000,000 - $20,000,000
(AI estimate)
Agency Distribution
Moderate
On 4/16/25 State of Tennessee in Tennessee issued Request for Proposals (RFP) South Data Center Divestment or Lease Strategy with ID RFI 31701-03604 due 5/20/25.
Contacts
Documents
Posted documents for South Data Center Divestment or Lease Strategy
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