Data Center Costs: From Building to Maintaining

The thought of consolidating all of your data into one robust data center is an appealing prospect – but as a CTO, you might be hesitant until you understand all of the factors involved. There’s a lot to consider in terms of cost, equipment, location, and more.

In this article, we’ll discuss the upfront and ongoing costs associated with building a new data center so you can make an informed decision. We’ll also discuss how to tell whether building a data center is the right choice for your company. Without further ado, let’s dive in.

The total cost to build a data center will depend on a variety of factors, including location, construction, cost of infrastructure, power, cooling, etc. Generally speaking, it can cost anywhere between $600-$1,100 per square foot to build a data center from the ground up.

Put another way, it costs between $7 million – $12 million per megawatt of commissioned IT. These estimates are taking into account the powered shell, electrical systems, and HVAC components necessary to run a data center.

Here’s a breakdown of what the money should go toward:

• Electrical systems: 40% – 50% of the budget
• Building fit-out: 20% – 25% of the budget
• Land and shell: 15% – 20%
• HVAC/mechanical: 15% – 20%

Choose a good location for your data center. It needs to be built in a sweet spot: close to major fiber optic trunk lines, with dual independent feeds from the power grid.

Your data center will require a lot of power and security infrastructure, so there’s a high likelihood that it’ll need to be located on corporate land (in other words, the price tag will be significant).

It’s also a good idea to choose a location generally free from natural disasters. You can help prepare your data center for such an event by conducting regular risk assessments and coming up with disaster continuity and recovery plans.

Construction will include:

• A foundation
• Walls
• A roof
• A transformer
• Loading dock
• Security/surveillance room
• Restrooms
• Hallways/corridors
• Common areas for employees

Planning for construction includes several factors, so it’s a good idea to get a professional opinion ahead of the project to ensure you don’t overlook anything.

In addition to the physical construction of the data center, you’ll need to plan for the digital infrastructure and other important components.

Here’s some of the equipment you’ll need:

• Structured cabling
• Servers
• Routers
• Switches
• Telephone equipment
• Storage units
• Cooling systems
• Security systems
• Generator
• Fire detection system

Each of the above categories can be broken down into even more equipment, so be sure to assess your specific needs with a construction professional so you can have an accurate idea of your data center costs.

The best way to reduce construction costs is to make sure you build a data center that’s the right size for your company. Building too large will be a waste of resources, and going too small will result in a need to upsize in the near future.

Take into consideration what your data needs currently are and what you anticipate they’ll be in the future. Since many data center components have a long life, it’s wise to look ahead several years (perhaps even decades) as you plan out construction.

Another option to consider is brownfield redevelopment, which is the use of an existing property to serve a new purpose. Many companies have seen success (and cost savings) by retrofitting existing buildings with the proper infrastructure and equipment to run a data center.

Cloud-based servers can also help keep costs down by enabling clients to only pay for the resources they use and eliminating maintenance costs. However, these solutions also have their downsides, so carefully consider all your options.

Beyond the initial construction costs, there is a recurring cost of maintenance, power, labor, and more. Read on for more info about ongoing data center costs.

A server will cost anywhere from $1,000 – $3,000 initially for a large business, but maintenance and replacement will cost a little over $700 a year. If physical servers get hacked or damaged, though, the cost will increase significantly.

Here are some other costs related to the server to consider:

• Cooling (power and maintenance): $416-$833 a month
• Uninterruptible power supply (UPS): $400-$750 a month
• Generator: $300-$500 a month
• Power: $200-$250 a month per rack (total of $1,000-$2,500 a month on average)

You’ll also need to consider the following costs:

• Utilities. In addition to obvious power needs, you’ll also need to pay for sewer and water costs, along with other utilities needed to run a facility.
• Staffing. The average salary of IT support staff is $69,667 a year. Large companies have at least 250 employees, so be sure to hire enough staff to manage all of the devices so the workload can be evenly distributed.
• Other equipment maintenance. The cost to maintain/replace security equipment, fire detection systems, fire extinguishers, and more will need to be factored in.

It’s worthwhile to ask yourself whether building a data center is truly the best solution for your company. There are several reasons why you would want to build your own data center. Here are some of them:

• You already own a majority of the data center (ie: you’re either planning to repurpose existing equipment or facilities to build a data center).
• You feel that your data is too sensitive to put into a data center managed or built by another organization.
• You’re planning to build a leasing or colocation facility which would allow other businesses to house their data there.
• You have plenty of financial resources to ensure the build goes smoothly, without experiencing a delay.
• You haven’t heard about any of the alternatives to building your own data center.

The two alternatives to building your own data center are data center rental/leasing and colocation. Each of the two has advantages and disadvantages, so research all of your options for the best outcome.

If you need help with designing, installing, or maintaining/operating your data center, we can help! We offer advanced estimating software to keep your project within budget. For over two decades, our team of professionals has partnered with business owners and IT professionals like you to deliver scalable solutions that are tailored to their unique needs.

Take a look at our most recent projects, and if you like what you see, contact us for more information!

i.e.Smart Systems is a Houston, TX based technology integration partner that specializes in design and installation of audio/visual technology and structured cabling. For more than three decades, our team of in-house experts has partnered with business owners, architectural firms, general contractors, construction managers, real estate developers, and designers in the Houston market, to deliver reliable, scalable solutions that align with their unique goals.