Our partners at Info~Tech Research Group have provided this overview of the key issues facing IT leaders as they consider build-outs or upgrades of their data centers. As you read through this report, you will also find links to free downloads of numerous Info~Tech tools and research notes to support you in your decision-making process.
Build a Data Center
Our partners at Info~Tech Research Group have provided this
overview of the key issues facing IT leaders as they consider build-outs
or upgrades of their data centers. As you read through this report, you will
also find links to free downloads of numerous Info~Tech tools and
research notes to support you in your decision-making process.
Executive Summary
– 42% of IT leaders will face a data center build or upgrade in 2010 – one of the most expensive and complex IT projects, it can cost up to $1.6 M for a 1000 square foot data center.
– Each data center project is unique and should have its own detailed budget. Planning up front and establishing a clear project scope will minimize expensive changes in later project stages.
– Industry benchmarks are not always accurate – the absence of a budget risks cost overruns by 22%. Hidden costs for landscaping, permits, and security can increase capital investments. Ongoing operating expenses must also be budgeted, as they represent 65% of the total costs associated with building a data center.
– Accurate estimates of facility requirements are a critical input to the project’s budget.
– Power and cooling supply requires careful estimation to accommodate future growth yet avoid unwarranted costs.
– Fire protection is mandated by law and comes with real consequences as it can impact life safety.
– Site selection should identify any potential issues that may lead to additional construction costs, especially in an existing building.
– Hire a specialized general contractor and avoid those who build office spaces only. Data centers have more stringent, unique code requirements. Use specialized talent to avoid costly retrofit later.
Many IT organizations face a
data center build but fail to recognize the
design and engineering complexities.
Data Center facilities require industrial design and engineering
– Data centers are getting bigger and more complex.
– Despite the availability of consolidation technologies, organizations Info-Tech surveyed were two times more likely to increase the size of their data center than decrease it.
– Internal expertise is most often lacking to undertake the build.
– Data center facilities require specific industrial design and engineering requirements to meet the needs for fire-protection, power provisioning, stand-by power, cooling, physical security, and layout.
Careful analysis of five key design
elements done internally now will yield better
cost and build outcomes later.
Analyze These 5 Now
To Yield Better Cost & Outcomes Later
– Analyze these five factors before engaging outside consultants and contractors to correctly align the facility costs and capacity with enterprise needs.
– Data Center construction projects executed without these five design activities, before awarding contracts, demonstrate a higher likelihood of cost overruns, overcapacity, and problems.
Establish clear project scope to minimize
expensive changes in later project stages.
Complete this project charter before the project commences to identify a clear and defined scope, decision rights, potential risks, and receive executive sponsorship.
– Understand just how big a project you are building.
– Provide input into a build vs. buy decision.
– Provide a project approval for business leaders to sign off on.
– Reduce external costs of the project overall.
65% of costs occur after the data center is
built — get a handle on all costs before the build.
–On average, a 1000 square foot data center costs $1.6 M.
–Each project is unique and should have its own detailed budget; create a detailed list of expected expenses for an accurate budget.
–Consider ongoing costs in your initial budget calculations, as they make up the bulk of the total costs associated with building a data center.
–Some major ongoing operating expenses include:
– Building leases
– Fire suppression systems
– Mechanical systems for electrical distribution, and in-room cooling
Info-Tech research shows that data centers
cost between $400 and $700 per square foot.
Lower than industry conventions.
–Using conventional industry standards can lead to over-estimating the build budget; Info-Tech’s research shows actual costs are 22% less.
–Organizations that rely on the industry standard of $600 to $900 per square foot when creating their budgets run the risk of over budgeting and over spending.
–As a result, general benchmarks should not be used for a data center build.
–Organizations should complete their own detailed investment and expenses to accurately budget for their builds.
For a more accurate and inclusive cost estimate
use Info-Tech’s budgeting tool.
–The ITA Premium, “Data Center Facility Budget Tool” enables the organization to account for all costs in order to arrive at an accurate estimate.
–Accounts for hidden costs, such as janitorial expenses, landscaping, permits, and physical security.
–Provides a complete example for a 1000 sq ft facility that you can tailor to suit your situation.
–Factors all necessary renovations, repairs, and upgrades related to purchasing an existing data center into the final cost.
–Even if you are planning on renovating an existing data center, you can still use the tool to determine ongoing operational costs.
Power estimates should accommodate
facility and equipment requirements.
Do not focus solely on the IT equipment housed in the data center.
Leverage the “Data Center Power
and Cooling Requirements Calculator”
to ensure budget accuracy.
Fire protection is not solely about IT assets;
additional protection must be evaluated
to avoid unnecessary costs.
–The number one consideration when evaluating fire protection options is life safety in the data center. It is mandated by law and non-negotiable.
–While clean agents can be very effective in suppressing fire and protecting property, they are also expensive to install and maintain and, may be toxic.
