Cost To Build A Data Center

Data centers are very expensive to build. The cost of building a data center varies according to its size, location, and other factors such as the features of the facility. Data centers are built using one or more floors in an office building or warehouse. Some people build their own data centers while others use virtual data center designs that they buy from third-party service providers. These days, most companies prefer outsourcing their infrastructure needs because it is cheaper than building one from scratch especially if you have limited resources and capital at hand. For example, you can save money by outsourcing your IT department instead of hiring new employees for your organization which will be costly as well as time-consuming.

The process of building a data center is a complicated one. It requires careful planning and a lot of research to ensure that all aspects of the project are done correctly, so that your company can use the data center as soon as possible.

The first step in building a data center is to determine what kind of facility you need. There are many different types of facilities available, from simple computer rooms to large warehouses or even entire buildings dedicated to hosting servers and other equipment for companies that need high levels of security and redundancy.

Once you’ve determined which type of facility you need, it’s important to find out where it will be located. Data centers should be located in areas with low crime rates, high-quality infrastructure, good weather conditions (for cooling purposes), and proximity to power grids so they don’t have to worry about outages affecting their operations. They should also be near other technology businesses so they can take advantage of shared resources like backup generators or firefighting equipment if necessary.

Once you’ve found an appropriate location for your new data center, it’s time to start designing it. This involves creating blueprints for each room so builders know exactly what needs built where so there aren’t any surprises down the road when construction begins in earnest.”.

The Data Center Cost to Build Ratio

The data center cost to build ratio is a common term in the industry. It is defined as the total cost of the data center to the total cost of the building, including land and construction. This ratio is an important factor in determining whether a data center should be built on-site or off-site. The higher this number, the more likely it is that an organization will want to host its IT infrastructure at an off-site location (i.e., co-location).


Pre-leasing is when you secure space before a new data center is built. This can be done either at an existing location or in an empty lot.

A pre-leased data center will cost more than the average price of $3,500 per square foot to construct because of the rent, but it also takes less time for construction to begin. It can take up to two years for a new building project to be approved and built in most cities, while pre-leasing usually takes only one year’s worth of planning before construction begins.

Pre-leasing has other benefits as well: it allows companies to move into their space early enough so they don’t have to waste any time finding a temporary location; they avoid paying extra fees associated with long-term leases; and they avoid paying interest on loans taken out by their landlord.

Other Fixing Costs

There are many other costs that can add up to a substantial amount. These include:

  • IT equipment (such as servers, storage, and networking equipment)
  • Building materials (the structure of the building itself)
  • Security systems for both physical and network security
  • Electricity, water, and waste disposal

Power Costs

Power costs are a major part of the cost of running a data center. How much you pay depends on location, size of facility, and type of equipment being used.

The average cost to power an average-sized data center is about $0.15/kWh (or 15 cents per kilowatt hour). In some regions, electricity costs can climb as high as $0.25/kWh (25 cents per kilowatt hour).

If you’re building your own facility and want to control your power consumption costs as much as possible then consider installing solar panels and/or wind turbines on your roof or property so that you will be producing more energy than you need for operation.

Site Selection

Site selection is one of the most crucial steps in planning a new data center. Your location will determine how much it costs to build your data center and how much you’ll pay for electricity, cooling equipment, and maintenance.

The best locations for data centers are:

  • Close to power grid, internet, and cooling resources – The proximity of these resources will help reduce your capital costs by enabling you to use less expensive materials like diesel fuel instead of electric power. Simply put, it’s cheaper (and greener) to use a truckload of diesel than an entire train car full of coal or natural gas when powering your servers.
  • Close to customers – If you can locate near major cities where many customers reside, it could save everyone involved time and money because they won’t need transportation when they’re sending information back-and-forth between each other.* Free from natural disasters – Hurricanes may seem like just another weather pattern but they can cause extensive damage if left unchecked—whether it be flooding or high winds which tear down trees all over town. You’ll want find out exactly what type

Data Center Management

Data center management is a complex task that involves many different aspects, such as upgrades and maintenance of the data center, staffing and training, security measures like fire safety and power management. It’s important to keep in mind that your company will have to invest time and money into building this infrastructure from scratch as well. To help you estimate the cost of your own project we’ve created a list of some common expenses associated with creating or expanding your data center:

  • Construction costs
  • Rack space (per server)
  • Network equipment (such as switches)

Insurance Costs

Insurance costs for data center construction

Insurance costs for data center equipment

Insurance costs for data center operations

Insurance costs for data center security

Designing the Data Center

You need to design the data center to be efficient and cost-effective. This includes:

  • Considering the type of equipment you need
  • Considering the cooling requirements
  • Considering the security requirements

In-house Or Outsourced Construction

Outsourcing is more expensive, but it’s also more flexible and may save you money in the long run. If you want to keep your data center private and don’t want to spend time on construction, outsourcing is the best option for you.

If you need a new data center quickly, outsourcing is probably still the best way to go because it will take less time than building one in-house. You can also save money by using an existing building that hasn’t been used for years or months rather than buying land and building from scratch (even if it isn’t as good).

Equipment List

Data Center Equipment List:

  • Server racks, cabinets or cages. You’ll need one rack or cabinet for every 10-12 servers you want to install (i.e., if you want 100 servers, you’ll need ten racks or cabinets).
  • Network equipment such as switches, routers, and firewalls. Depending on how big your data center is and what kind of networking equipment you’re using (Ethernet vs. SONET), this can add up quickly.
  • Cooling units for the servers themselves. These can range from simple fans attached to each server cabinet/rack all the way up to elaborate cooling systems that keep things running smoothly 24/7 without fail—and thus provide peace of mind when it comes time for an audit by regulatory bodies like HIPAA or PCI-DSS (Payment Card Industry Data Security Standard).

Land Costs

Land costs make up a significant portion of the overall cost to build a data center. On average, 5% of your total budget should be devoted to land costs. This amount can vary significantly depending on where you choose to locate your data center, but it’s always something to keep in mind when estimating your project budget.

If you’re building from scratch and have no existing infrastructure or utilities on-site, then you’ll need access to power and water in order for your facility to operate at peak efficiency. The best way to lower this cost is by choosing an area that already has some form of infrastructure in place (such as another data center).

Location Of The Data Center Facility

  • Location of the data center facility is important.
  • Your data center should be close to your customers.
  • Your data center should be close to your employees.
  • You need a low-risk area for the construction of your facility, and you also need a high-security area for it afterwards.

Permitting And Approvals For Building A Data Center Construction Project

Permits and approvals are required before construction can begin on a data center. If you’re building a traditional data center, you will need to obtain permits and approvals from the local city or county government. These include:

  • Building permits – Building permits are issued by your local building department, which ensures that your data center is built to code and meets all fire safety standards. You may also be required to submit plans for review prior to receiving approval for construction
  • Electrical service – Electrical service needed for powering up the servers is often provided by an electric utility company in addition to being metered separately from any other electrical service at the facility
  • Gas services – Natural gas or propane (LNG) supplies are generally provided by private utilities that provide these services directly within their territories

Building a data center can be cost-intensive.

Building a data center can be cost-intensive. If you are not prepared to spend money on the project, it is better to not undertake it at all. Before starting your project, you need to know what it will cost and how much money you are going to spend on the project. You should have a good understanding of what kind of data center you need and why you want to build one in particular.


When you consider how much it costs to build a data center, it’s important to take into account the many different factors that go into the price. You should also think about how much it will cost you to manage your facility once it’s built so that you can make sure you have enough money set aside for maintenance and repairs. If possible, try working with an experienced contractor who has built similar facilities before so they know what they’re doing.

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