What does it cost to build a data centre? (2024)

A data center is a physical facility where businesses keep their vital applications and data. A data center’s architecture is built around a network of computing and storage devices that allow for standard applications and data sharing. Routers, switches, firewalls, storage systems, servers, and application-delivery controllers are critical core components in modern data centers.

Data Centre Cost

The cost of ownership in maintaining a private data center or co-location facility is Data Center Cost. The property, structure, servers, networking gear, power, cooling systems, and other network infrastructure needs.

While some factors influence annual expenses, the cost to build a data centre is determined by the building’s footprint, its site, and the center’s purpose.

On average, the cost of running extensive large data center services ranges between $10 million and $25 million per year. The most significant expenditure is on ongoing application and supporting infrastructure maintenance. The remainder is spent on heating, computer room air conditioners, property taxes, and labor expenses.

Cost To Build In-house Data Center

A small data center will set you back around $1000 per square foot to construct. That isn’t taking into account that laying fiber to your location might cost thousands of dollars each mile. The average commercial data center availability center costs between $10 million and $12 million per megawatt to construct, with most of the expense incurred during the initial few megawatts of deployment. Companies are rapidly changing business needs, and evolving technology has compelled them to make considerable upgrades to their infrastructure. Should companies decide to hire these facilities, they may be expected to help them meet IT demands.

Construction

A typical data center for single-tenant use may take 12-24 months to be ready through planning, engineering, construction, and commissioning phases. However, existing co-location facilities providers can get spaces prepared in weeks, a fraction of the time it takes to develop.

Core Business and Staffing

Setting up a data center, by definition, entails moving time, knowledge, experience, and additional workforce personnel away from the core business to address the data center’s specialized needs, such as power supply and cooling.

Ongoing Support

Businesses must also consider the initial startup expenditures for building and acquiring real estate the continuing operating expenses of power, heating, air conditioning, and security and maintenance.

Scalability

The projected life cycle is ten years or more when constructing a single-tenant data center. This might cause initial overbuilds to be added to capital, physical infrastructure, and energy consumption expenses. If the data center is too big, the total cost of each rack will be more significant. If a company’s data center is too small, it will run out of space sooner than anticipated and lose the cost-saving benefits of scale. The primary use of co-location services allows businesses to expand or shrink their presence as needed. In the world of data center co-location, suppliers compete to provide you with the most cost-effective solutions available. You can add or remove capacity rapidly and inexpensively in co-located facilities.

What does it cost to build a data centre? (1)

Shared Cost Structure

The user pays all of the expenses associated with a single-tenant data center, such as space, power, and environmental infrastructure. A co-location service provider lowers the fixed costs of facility management, maintenance, security, and data center infrastructure for its customers.

Connectivity

Connectivity costs from carriers and ISPs may increase when you add fiber and local loop expenses to your data center. This can also add time to the facility’s entire operation. Carriers generally have a backup data center inside their facilities, eliminating additional local loop costs. Co-locations provide services that may need to pay for the construction of fiber entrance facilities or provide incentives to entice the carrier to extend its fiber network connectivity into the data center industry.

Certifications

The cost of certifications and the criteria and procedures that must be in place for them, such as SSAE16 and HIPAA, needs to be factored in.

Co-locate with 365 Data Centres

Data Centers is a laser-focused firm dedicated to providing reliable and secure co-location, network, and cloud providers service. A new data center components feature security monitoring, and Without appropriate maintenance, your equipment and infrastructure that supports it will wear out over time.

Cost Examples of Building a Data Center In-house

Mid-sized Enterprise Data Centers (5,000 square feet)

  • A Tier II facility with 160 racks, each with a capacity of 5.0 kW/rack (800 kW of UPS-protected power)@ 5.0kW/rack. (5,000 sq. ft. X $300/sq. ft.) + (800 kW x $12,500/kW) = $11.5 million
  • A Tier Level III level facility, with 160 racks at 10.0 kW/rack (1,600 kW of UPS-protected power) @ 10.0kW/rack. (5,000 sq. ft. X $300/sq. ft.) + (1,600 kW x $23,000/kW) = $38.3 million

Small Data Center (1,000 square feet)

  • A Tier Level II level facility with 32 racks at 5.0 kW/rack (160 kW of UPS-protected power) @ 5.0kW/rack. (1,000 sq. ft. X $300/sq. ft.) + (160 kW x $12,500/kW) = $2.3 million
  • A Tier Level III level facility, with 32 racks at 10.0 kW/rack (320 kW of UPS-protected power) @ 10.0kW/rack. (1,000 sq. ft. X $300/sq. ft.) + (320 kW x $23,000/kW) = $7.7 million

Large “Telco Room” (500 square feet)

  • A Tier Level II facility with 16 racks at 5.0 kW/rack (80 kW of UPS-protected power) @ 5.0kW/rack. (500 sq. ft. X $300/sq. ft.) + (80 kW x $12,500/kW) = $1.2 million
  • A Tier Level III facility, with 16 racks at 10.0 kW/rack (160 kW of UPS-protected power) @ 10.0kW/rack. (500 sq. ft. X $300/sq. ft.) + (160 kW x $23,000/kW) = $3.8 million

What is the Difference Between a Data Center and The Cloud?

A data center is a facility where server rooms and data storage are housed for an organization. The components of a data center include the hardware, the area in which it is housed, power and backup systems, environmental controls, and anything else needed to keep those servers up and to run.

Cloud companies may have their own data centers, but organizations frequently maintain their own data centers, known as on-premises or on-prem for short. When most people talk about their data centers, they refer to on-premises data centers.

How is a Cloud Data Center Different?

A public cloud data center is a facility that provides as-a-service applications and workloads. For example, a software-as-a-service vendor might store all of the program’s requirements on servers in one or other data centers and allow clients to access it via an internet connection. Instead, the software is run on a large data centers server rather than on each user’s computer room.

Conclusion

The need for dependable and scalable data center space to co-locate IT infrastructure rises as businesses develop. A data center or power outage might have severe consequences for a firm in the form of decreased productivity, client churn, and revenue loss. Successful businesses often outgrow their in-house computer and telecom room quickly. They also need appropriate working conditions to allow software development, testing, quality assurance, and production apps. Furthermore, as firms attract business clients, compliance and security standards become more important.

Before extending your data center, you should assess the costs, risks, and potential benefits of creating an in-house data center versus buying co-location services.

What does it cost to build a data centre? (2024)

FAQs

What does it cost to build a data centre? ›

According to the U.S. Chamber of Commerce, the average data center costs $215.5 million to build and includes 165,141 net rentable square feet. Here's how the costs break down: IT equipment – $157.1 million. Land acquisition – $13.4 million.

How much does IT cost to build a data center? ›

For the sake of argument, we can start with a figure of $1,000 per square foot. A 1,000 square ft. data center would then cost $1 million on that basis. A data center of the size that Facebook or Google might use would cost from $250 million to $500 million.

How much land do you need to build a data center? ›

Property Size and Location. Data center tenants generally need to build two buildings on a site to take advantage of efficiencies in utilities and security. This means a feasible site size is approximately 40 acres at a minimum, though some developers and tenants could be interested in much more.

What is required to build a data Centre? ›

What are the 4 main components of a data center infrastructure? Fundamental components: hardware and software used in IT operations and data management. These may be stored and server equipment; network infrastructure such as switches and routers; information security elements like firewalls.

How much does a data center cost reddit? ›

Depends on tier of facility, could range from $6M per MW to $16M per MW.

How much does IT cost to build a space center? ›

The cost of the center is estimated at $2 billion, and it's anticipated that construction of the first building could begin within three years, with occupancy taking place by 2027.

Why is data center so expensive? ›

A mile of fiber optic connection can cost up to $250,000 USD. A Data Center needs technological infrastructure to eliminate heat, fire protection, and physical security equipment; depending on the tier, closed circuit equipment and access sensors with biometric authentication mechanisms can also be installed.

How long does IT take to build a data center? ›

Construction. A typical data center for single-tenant use may take 12-24 months to be ready through planning, engineering, construction, and commissioning phases. However, existing co-location facilities providers can get spaces prepared in weeks, a fraction of the time it takes to develop.

What is the minimum size for a data center? ›

Space Requirements

Smaller data centers might operate within 5,000 to 10,000 square feet, but larger enterprise and hyperscale data centers significantly exceed this range. Data center capacity can thus refer to the physical space that is available for IT infrastructure.

Is IT profitable to build a data center? ›

Data center conversions can be a highly profitable avenue for CREs looking to repurpose underutilized spaces. The commercial real estate industry is grappling with an unprecedented challenge: a significant decline in traditional office occupancy.

How much does datacenter infrastructure cost? ›

On average, constructing a commercial data centre costs between $10 million and $12 million per megawatt, with a significant portion of the expense occurring in the initial stages of deployment. As business needs evolve, companies often need to invest significantly in upgrading their infrastructure.

How much did Google data center cost? ›

Google is fulfilling its promise of spending $9.5 billion on new Google data centers and offices in 2022 with the unveiling of a new $750 million data center in Nebraska.

How much does Amazon data center cost? ›

If approved, construction of the five facilities would take place over the next four-five years, with the first facilities coming online in late 2023 and the last slated for early 2027. According to government documents [PDF], Amazon expects each datacenter to cost approximately $2.37 billion.

What is the true cost of building a data warehouse? ›

Data Warehouse Cost in Brief

The requirements for analytics & reporting complexity, data quality management, security, and regulatory compliance also influence the TCO. Depending on these variables, the cost of data warehouse implementation can range from $30,000 to $1,000,000+.

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