Knowledge Builders

what does it cost to build a data center

by Stacey Cremin Published 2 years ago Updated 2 years ago
image

The cost to build a data center is frequently quoted on a price-per-square-foot basis. Depending on where you are, this cost could be as minimal as $200 per square foot, but it can range as high as $1,000 per square foot or more. Data Privacy should also be considered while implementing it.

The average enterprise data center costs between $10 million and $12 million per megawatt to build, with costs typically front-loaded onto the first few megawatts of deployment. What's more, the typical edge data center costs between $8 million and $9 million.Mar 22, 2021

Full Answer

What are the things to consider when building a data center?

  • Agility: Ask yourself, are you working fluidly enough to adapt to changing business needs? Fixed rules and fixed modeling are no good. ...
  • Integration: You need to make sure that you're set up to integrate more data as it becomes available. ...
  • Objective: Always have your eye on the business outcome. ...

How much does it cost to build a data center?

The average enterprise data center costs between $10 million and $12 million per megawatt to build, with costs typically front-loaded onto the first few megawatts of deployment. What’s more, the typical edge data center costs between $8 million and $9 million.

How much should a modular data center cost?

How Much Is A Data Center Worth? It depends, but to start with, a figure of $1,000 per square foot is the average cost. So also, 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 Do Data Centers Make?

What are data centers and how much do they cost?

The cost to build a data center is frequently quoted on a price-per-square-foot basis. Depending on where you are, this cost could be as minimal as $200 per square foot, but it can range as high as $1,000 per square foot or more. Data Privacy should also be considered while implementing it. Other Cost Considerations

See 7 key topics from this page & related content

image

How much does a data center cost?

The average yearly cost to operate a large data center ranges from $10 million to $25 million. A little less than half is spent on hardware, software, disaster recovery, continuous power supplies and networking. Another large portion goes toward ongoing maintenance of applications and infrastructure.

How much does IT cost to build a data center per square foot?

The average-powered base building (defined here as foundation, four walls and roof along with a transformer and common areas for security, loading dock, restrooms, corridors, etc…) of a data center facility typically ranges from $125 per square foot to upwards of $200 per square foot.

How much does IT cost to build a data center in USA?

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.

Is building a data center profitable?

Data centers are expensive, resource intensive, and rarely profitable.

Can I own a data center?

The short answer to your question is that it costs about $1000 a square foot to build your own data center. That's not taking into account that it can often cost in excess of $10,000 per mile that it takes to have fiber installed to reach your location.

How much does a Tier 4 data center cost?

Tier IV Costs $15,400 to Support $2,500 Server | Data Center Knowledge | News and analysis for the data center industry.

What is the biggest cost in data center?

Data Centers -- What are the Costs of Ownership?Electricity: 20 percent.Engineering and Installation Manpower: 18 percent.Power and Server Equipment: 18 percent.Facility Space: 15 percent.Service and Maintenance: 15 percent.HVAC Equipment: 6 percent.Project Management: 5 percent.Rack Hardware: 2 percent.More items...•

How much land does a data center need?

Size matters for data centers — end users generally need at least two buildings on a site to take advantage of efficiencies in utilities, security and proximity to other data centers. A good target site footprint for two such buildings is 40 acres, and many developers are looking for sites that are hundreds of acres.

How do I start a data center startup?

1:277:49How to set up a data centre startup in India | Data Economy FrontlineYouTubeStart of suggested clipEnd of suggested clipAnd I approach the government and ask them okay can you come up with the data's in the power.MoreAnd I approach the government and ask them okay can you come up with the data's in the power. Because all the basic amenities should be provided by the government and the government like the idea.

How long does IT take to build a data center?

between 18 months and 24 monthsThe construction phase is typically between 18 months and 24 months (Table 5).

How much does IT cost to build a Tier 3 data center?

DATA CENTER: TOTAL COST OF OWNERSHIPBUILD YOUR OWNTier III COLOCATION SPACEConstruction Cost$535,000.00$ -Floor Space$15,000.00$153,000.00Electricity$51,321.60$107,775.36Electrical Maintenance$28,361.15$ -4 more rows

How do I invest in a data center?

How to Invest in Data Center REITs. There are numerous data center REITs listed on the FTSE Nareit US Real Estate Indexes. Many investors acquire shares in these REITs via REIT mutual funds or exchange-traded funds (ETFs), but individuals can also invest directly in an office REIT with the help of a broker.

How many square feet are data centers?

approximately 100,000 square feetData Centers are of Different Sizes While most are small, the average data center occupies approximately 100,000 square feet of space.

How much land does a data center need?

Size matters for data centers — end users generally need at least two buildings on a site to take advantage of efficiencies in utilities, security and proximity to other data centers. A good target site footprint for two such buildings is 40 acres, and many developers are looking for sites that are hundreds of acres.

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

Overall, the company is building 4 data centers at this campus as part of a $1.0bn+ investment, which will span a total of 2.5 million sqft. Indeed, this implies a cost of $400 per sqft to develop this data center campus.

How much does a modular data center cost?

Data center costs are generally expressed as a euro or dollar per watt multiple. Tier1 Research, a leading commentator on the data center industry, conducted a study on this topic and based it on 20 modular data center (MDC) providers. They concluded that the value should be $10 per watt.

How much does it cost to run a data center?

The average yearly cost to operate a large data center ranges from $10 million to $25 million. A little less than half is spent on hardware, software, disaster recovery, continuous power supplies and networking. Another large portion goes toward ongoing maintenance of applications and infrastructure. The rest is spent on heating, air conditioning, property and sales tax, and labor costs.

What is data center cost?

Data Center Cost refers to the cost of ownership in running a private data center or colocation facility — including the property, building, servers, networking equipment, power, cooling and other infrastructure needs.

Calculate Generator Requirements

You can’t serve your members if you don’t have power. It’s as simple as that.

Power

Total fixed data center costs before maintenance before maintenance is between $4,046 - $6,100 per month. This does not include soft labor or maintenance pricing.

We also support your IT team with relevant resources, trusted advice, and best practices to ensure that your implementation is right the first time

Learn more about what we can do for you with one of our free eBooks, or schedule a personal consultation with one of our experts.

Why is location important in data centers?

The adage holds true for data centers: Location! Location! Location! To decrease latency, data centers need to be located as close to the fiber optic trunk lines as possible. Perhaps, more important, these facilities are best suited with dual, independent feeds from the power grid. By virtue of these two qualities, data centers often are set within a sizable corporate concentration, putting a premium on land pricing.

How much does it cost to build a data center?

From the switchgear, UPS, redundant chillers and generators, an N+1 data center encompassing 3.5 MW of sellable IT capacity can be between $280 per square foot and $350 per square foot (assuming a 100,000-square-foot facility). These costs can, of course, be much higher depending on the power, redundancy and availability requirements.

What is mission critical in real estate?

In the world of commercial real estate, only a handful of product types can truly be classified as mission critical – healthcare facilities and data centers are two that immediately come to mind. It’s not surprising that, because of their importance to our daily living, the sheer cost associated with developing either one of these product types is dramatically more expensive than an office or industrial building. Data centers have their own cost nuances: They need to be located within close proximity to major fiber optic trunk lines with dual feeds from the power grid and require heavy power and security infrastructure.

How much does a data center cost?

The average-powered base building (defined here as foundation, four walls and roof along with a transformer and common areas for security, loading dock, restrooms, corridors, etc…) of a data center facility typically ranges from $125 per square foot to upwards of $200 per square foot. In general, this is somewhere between what it costs build industrial and office assets (depending on the design).

How much money did Google invest in Council Bluffs?

In 2007, Google announced plans to construct a data center in Council Bluffs . By 2019, Google will have invested more than $2.5 billion into this 1.4 million-square-foot facility.

What to expect from tier 1 markets?

What to expect: The Tier I markets will continue to see more construction and absorption but “edge cities” will also begin to thrive as providers seek to spread their megawatt (MW) footprint geographically.

Will the proliferation of data centers increase as the world becomes more connected?

The proliferation of data centers is only projected to increase as the world becomes more connected. There is no doubt that efficiencies and component cost reductions will decrease the required space per kilowatt. However, the change in the way we consume content (videos, streaming TV and gaming, etc…) will push the limits of required bandwidth per person. Expect this to increase the burden on providers and outpace the efficiencies of storage technology.

image

1.Estimated Cost of Building a Data Center Business in 2022

Url:https://www.profitableventure.com/long-cost-build-data-center/

18 hours ago 10 rows ·  · Megawatts (MW) Total development costs for a greenfield data center, based on megawatts, ...

2.How Much Does Running A Private Data Center Cost Per …

Url:https://www.streamdatacenters.com/glossary/data-center-cost/

28 hours ago  · It costs between $10 million and $12 million per megawatt to create an average business data center, with the majority of the expenditures being front-loaded onto the first few megawatts of the facility’s deployment. Furthermore, the average cost of an edge data center is between $8 million and $9 million dollars.

3.Data Center Cost: Total Cost of Ownership (TCO) Pricing

Url:https://ongoingoperations.com/data-center-pricing-credit-unions/

6 hours ago  · It costs between $10 million and $12 million per megawatt to create an average business data center, with the majority of the expenditures being front-loaded onto the first few megawatts of the facility’s deployment. Furthermore, the average cost of an edge data center is between $8 million and $9 million dollars.

4.Data centers: expensive to build, but worth every penny

Url:https://www.us.jll.com/en/views/data-centers-expensive-to-build-but-worth-every-penny

2 hours ago The average enterprise data center costs between $10 million and $12 million per megawatt to build, with costs typically front-loaded onto the first few megawatts of deployment. What’s more, the typical edge data center costs between $8 million and $9 million.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 1 2 3 4 5 6 7 8 9