General Motors plans to construct a second data center in Milford to go
along with a recently opened information technology data operation in Warren,
making Michigan the nerve center of GM's global data.
The automaker today confirmed that it will invest $258 million to open a new
data center at its Milford Proving Grounds after receiving a tax abatement from
Milford Township to construct the facility. Construction will start this summer,
and the facility is expected to open in July 2014.
As many as 350 skilled-trades construction workers are expected to help build
the center, including 95% from southeast or central Michigan, GM said.
GM also recently spent $130 million to create a new IT command center at its
Technical Center in Warren.
Collectively, the two operations will "mirror" each other, allowing continuous
flow of information in case one site has an outage. It's a standard strategy in
the data center business to implement systems that won't lose data in the case
of a natural disaster, for example.
The changes essentially mean that all of GM's global data will flow through the
two Michigan operations.
The centers are part of GM Chief Information Officer Randy Mott's plan to reduce
the automaker's complex information technology structure. Part of that plan was
to reduce the number of GM data centers from 23 to two. The company is also
"insourcing" 90% of its IT work, which was previously conducted mostly by
outside contractors.
Mott and GM CEO Dan Akerson are expected to address the company's information
technology overhaul at a press conference this morning.
"Having a single nerve center for our global operations will get newer vehicle
designs and technologies into our customers' hands quicker and improve the
bottom line," Akerson said in a statement. "IT is back home where it should be,
and it further drives unnecessary complexity from our businesses while improving
our operational efficiency and better supporting our business strategy."
Mott has described the overhaul as vital to expediting the vehicle development
process, reducing costs and improving communication speed throughout the global
automaker's business.
For example, GM said the new systems would allow it to crunch data quickly
through digital crash test analysis, saving $350,000 for every actual crash test
that doesn't have to be conducted.
The 5,040-square-foot facility in Warren has 48 computer stations and 28 video
screens allowing IT analysts to monitor information flow.
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