Building a data center means a company will need to shift time, knowledge, expertise, and additional personnel resources away from their core business to understand the specialized needs in a data center such as power, cooling, fire suppression, security, maintenance and local/environmental codes. Several companies are focusing on establishing data center facilities in the region due to its cost-efficient and energy-saving benefits. The cost to build a data center is frequently quoted on a price-per-square-foot basis. ft. of computer floor and this cost must be added to the “kW cost” shown above. Renting space from a colocation provider may offer significant savings versus building a data center in-house, because a colocation provider has the economies of scale of serving multiple customers. Construction Cost Estimates for Computer Data Center in National, US. Annually, Colocation Svcs. All of our facilities meet the compliance standards of HIPAA, PCI, SSAE 16 and ISAE 3402. Numbers come out similar to yours. Copyright © 2020 365 Data Centers. Building your own in-house data center is not a walk in the park. Costs are derived from a building model that assumes basic components, using union labor for a 22500 square foot building. In 2016, data center starts climbed another 20% to 8.2 msf/$3.6 billion. Design Cost Data - The #1 industry source for actual square foot cost data. College and/or post-graduate degree in construction management, cost management, quantity surveying, engineering or field related to construction. Building out a structure suitable to serve as a data center costs about $200 per square foot according to a report by the research firm Forrester. Prepare written comments to the general contractor’s submissions, including the executive summary. The Institute’s tiered classification system addresses the needs of common benchmarking when discussing the abilities of data centers. The new facility has a cement slab rather than a raised floor, and servers are housed in rows of racks that are connected to a hot-aisle containment system. ft. @ $12 sq. Colocation options typically allow capacity to be added or removed quickly and cost effectively. For example, Tier I and Tier II data centers can require a ratio of 1 to 1 support space, reducing actual allowed space for IT footprint. See also: How Server Power Supplies are Wasting Your Money. The four tiers as classified by the Uptime Institute include the following: The Uptime Institute’s research has also provided an estimation of the median costs of building facilities according to their tier structure. The two-story, 67,000 square foot building was redesigned to become a data center, and demolition of parts of the building started in September. cost effective to consider an approach to data center and network room deployment that is scalable and modular in order to obtain a significant fraction of the cost savings available by rightsizing. Building a data center cost model is an important step in managing your data center capital costs and ongoing operational costs. As more companies utilize increasing amounts of data requiring additional computing power, the rate of data center construction continues to rise in order to keep up with the evolving business landscape. You need to make an informed decision about the feasibility of building one versus colocating your workloads to a colocation provider. Derive cost estimates and schedules for recommended implementations. Building an in-house data center is expensive. Businesses must also consider not only the initial startup costs involved with construction and acquisition of real estate, but also the ongoing costs of power, heating and air conditioning, along with the security and maintenance of these physical assets. Experience of leading cost management on medium or large sized construction projects of medium to high complexity. Existing colocation providers can have spaces move in ready within weeks, a much shorter time frame to manage. Provide estimate and cost planning to include producing and presenting the final cost plan. The cost of commercial office space in the U.S. can range from $6 per square foot in low cost regions to over $12 per square foot in New York City. 1. In fact, according to a recent Insight Partners report, the value of the international data center construction market was $43.7 billion in 2017, and, at … 2,138 Data Center Construction Project Manager jobs available on Indeed.com. The reason behind this is that many enterprise data center workloads are migrating out of private, single-tenant data centers. This will be the first expense you encounter when looking to build a data centre. It can involve a change in physical room size or layout or electrical capacity, Compiling as built cost estimate records for benchmarking purposes. By comparison, developer DuPont Fabros Technology (DFT) said this month that it spent $1,000 a square foot to develop a premium data center in northern Virginia that hosts Yahoo (YHOO) and Facebook. Building an in-house data center is an expensive undertaking especially when you consider the total cost of ownership over the next five years. The cost assumptions are based on matching the material, operations, and maintenance programs of a TIER II colocation provider. We also include the ongoing operational costs over a 5-year period. The space required for power and mechanical needs grows incrementally based on the Tier level you decide upon. The global data center general construction market is set to post a CAGR of 8% during 2019-2023, according to the latest research from Technavio. The facility was 225,000 square feet, with construction costs totaling $60 million. An in-depth analysis of the costs, risks, and opportunities corresponding to each option helps uncover hidden costs: Through the phases of planning, engineering, building, and completion, a typical data center for single tenant use could take 12-24 months to be move in ready. Data Center Cost: Total Cost of Ownership (TCO) Pricing Breakdown. It’s function over form every time. Data center construction continues to be one of the fastest growing segments of the commercial construction market. A 1,000 square ft. data center would then cost $1 million, on that basis. The modern data center is an exciting place, and it looks nothing like the data center of only 10 years past. Estimating and negotiating change orders throughout the construction lifecycle. These comparisons assume a build option with the load at 40% of capacity with room for growth, utility costs of $.08 per kWh and a 2.0 Power Usage Effectiveness (PUE), and an average 5 mile local loop/fiber cost of $150 per mile per strand vs. cross connects. Smaller businesses may be able to convert one of their offices into a data center. In data center economics, no concept has garnered more attention, and less understanding, than Total Cost of Ownership (TCO). Colocation providers may need to share the cost of building fiber entrance facilities or create an incentive to make it worthwhile for the carrier to extend their fiber network into the data center. Depending … Construction Cost Estimates for Computer Data Center in National, US. What you pay the data center is separate from the equipment you house there. (500 sq. Generation 5 continues Microsoft’s ongoing refinement of its data center design, with regular updates to include the latest innovations and best practices. Manage Cost impact / contingency management and commitment tracking logs. Buying colocation services from a third-party service provider is more cost-effective than building your own. To find out more, click below to view the latest Construction Cost Handbook or download the Asia Cost Guide App on iOS or Google. The cost of the data center largely depends upon the size of the facilities needed. Prepare funding data presentations and coordinate VE sessions with stakeholders. All rights reserved. ft. X $300/sq. The “Computer Room” Component in all cases is $300/sq. Below are the Uptime Institute’s cost estimates for building a data center broken down by three components: The “kW” Cost Component by desired level of functionality. With Simpl • Est Square Foot, you get unlimited access to a cost database featuring nearly 2,000 actual building projects!. Will your organization build a new data center in the next 12 months? This will be the first expense you encounter when looking to build a data centre. Our professional team of Construction Managers are focused on … Manage cost checks and carry out valuations on larger projects. Where a data center is located relative to local airports, shipping routes, telecommunications infrastructure, and power lines are all considerations outside of a data center proper. Developing cost plans and estimates through the design phase, delivering updated cost plans at appropriate design milestones. Carrying out the production of monthly cost reports for presentation to the client. DATA CENTER CONSTRUCTION COSTS By Larry Smith, President, ABR Consulting Group, Inc. BACKGROUND One of the most troublesome parts of producing a budget for the design and relocation of a data center is budgeting for the construction of the computer room and supporting equipment yard portion of the project. This cost account for a significant portion of the upfront costs of building a data centre, expect 20 to 25 percent of the total upfront construction cost. In reality, using a co-location facility can provide one of the best Return on Investment's (ROI's) of any project you can take on. These capital expense (CapEx) costs can add up quickly. We are organizing historical data and collecting data center design and construction cost information from organizations who have commissioned new data center space in recent years, or those organizations currently in the throes of a project. According to their research, the primary drivers of data center construction cost are the costs of power and cooling capacity to a data center. Data Center Critical Infrastructure Upgrade Specialists. Building a single tenant data center can add additional costs of connectivity from carriers and ISPs by adding fiber and local loop charges. A data center cost model allows you to predict future scenarios. Data centers are often sized by the amount of protected electrical capacity of the facility measured in kilowatts (kW). Data Center Projects: Standardized Process Schneider Electric – Data Center Science Center White Paper 140 Rev 1 2 A data center construction project can be large or small, new construction or retrofit, com-plete or partial. Comparing the total cost of ownership of building your own data center vs. buying third-party colocation services. The project is estimated to cost $35 million. Apply to Construction Project Manager, Cost Manager, Site Manager and more! The survey further pointed out that the colocation providers showed continued rapid growth—as shown in the percentage of new data center builds by colocation providers versus enterprises. ft. The data center construction market valued at USD 38 billion in the year 2019, is anticipated to reach a value of USD 46 billion by 2025 at a compound annual growth rate (CAGR) of 3%. The following analysis estimates the cost to build a computer data center using US National Average costs from 2013 RSMeans cost data. ft.) + (160 kW x $23,000/kW) = $3.8 million. Based on estimates by the Uptime Institute, colocating can be 19%—64% more cost-effective than building an in-house Tier 2 data center. You Turner & Townsend are engaged to support our clients with many complex projects, responsible for all aspects of cost management and project delivery. This doesn’t factor in, of course, the cost of the property where the facility is built or the expenses associated with locating and assessing potential sites. ft. X $300/sq. Data center construction is the collective set of processes used to physically construct a data center facility. Cost Examples of Building a Data Center In-house. The largest data center started that year was built by the Sabre Corporation in Tulsa OK, a company founded by American Airlines in 1960, and spun off in 2000, to facilitate airline bookings in North America. When considering using a co-location facility it may seem that per rack and power fees are cost-prohibitive. The cost of running a cloud data center In this case cloud data centers means data centers with 10,000 or more servers on site, all devoted to running very few applications that are built with consistent infrastructure components (such as racks, hardware, OS, networking, and so on). What transforms a raw space into a data center is the installation of utility power, redundant power systems and cooling. Experience working on large-scale commercial real estate or data center projects. For example: Mid-sized Enterprise Data Center (5,000 square feet) Tier II level facility with 160 racks at 5.0 kW/rack (800 kW of UPS-protected power) @ 5.0kW/rack. With 100% uptime and industry compliance, 365 Data Centers ensures that mission-critical application infrastructure is highly available and conveniently accessible. (1,000 sq. In fact, according to Moore’s Law (named after the co-founder of Intel, Gordon Moore), computing power doubles every few years. Construction costs of the 1.016 million-square-foot warehouse on about 94 acres were estimated at $59,184,676 by general contractor Samet Corp., … Data Centers Delivered provides a full-suite of modular data center solutions that offers you a customizable and scalable field-built construction process combined with the predictability, speed and cost-containment of a factory-manufactured, modular product approach…allowing your data center to grow along with any data center requirement you need. This may lead to initial overbuilds that adds to the bill: additional capital, infrastructure, and energy consumption costs. When considering using a co-location facility it may seem that per rack and power fees are cost-prohibitive. A fan wall on one side of the facility manages airflow into the data hall, which functions as a room-level cold aisle – althoug… to share. Ensuring that post-contract cost variances and change control processes are managed effectively. AWS data center physical security begins at the Perimeter Layer. Complete timely, accurate cost checking and valuation processes. Communicate or meet with general contractor and owner project manager to gather status information to prepare a cost estimate update. 5 Key to Cost Effective “Smart” Data Center Design 24 5.1 Right Provisioning of the Data Center: Dynamic Cooling 24 5.2 Introducing “Smart” Redundancy 27 5.3 Modular Data Center Construction and High Level Control Policies 29 5.3.1 Exergy Destruction Method for Data Centers 31 6 Summary and Conclusions 32 Acknowledgments 34 Review and participate with the design services team and general contractor, in the development of the cost estimates. On average, a 50-cabinet data center will occupy about 1,700 square feet. Since data centers consume 100 to 200 times as much power as typical office spaces, they require significant infrastructure to deliver power and remove the heat. We’re recognized by the industry as a Top 5 builder of data centers, and by our customers as a trusted partner. In a single tenant data center, all of the costs of the space, power, and environmental infrastructure are absorbed by the user. Finally, hiring experienced data center personnel adds to the expense and takes resources away from a company’s core business. Brian Mattson, Vice President of Construction at RagingWire Data Centers, analyzes how to accelerate the pace of modern data center construction while staying under budget and improving quality. Data center and/or computer room budgeting or cost estimating are accomplished by identifying the key design criteria for the two (2) main areas of the project focus within the overall data center infrastructure and services, the Technology Infrastructure & Services … Mission Critical Magazine | Data Centers & Critical Facilities By the way I’ve been playing with your spreadsheet a bit — trying to come up with a cost/server from a different angle, using a $1200/sqft baseline for the data center (found that somewhere), assuming 25 sqft/rack, etc. The Uptime Institute is a leading 3rd party data center research, education, and consulting organization focused on data center performance and efficiency. For example, recent material cost increases in the Chicago market were relatively modest. Entering the term “data center total cost of ownership” into Google returns more than 11.5 million results, so obviously people have given this a lot of thought. Uptime Institute’s 2015 Data Center Survey showed that colocation service providers are expanding more rapidly than enterprise data centers. You get detailed cost-breakdowns for schools, hospitals, municipal buildings, offices, multi-family housing, restaurants, retail stores and much more. Work proactively with minimal supervision to resolve scheduling issues. The Global Data Center General Construction Market will grow by $ 753.05 mn during 2020-2024 More and more enterprise IT leaders are finding it easier to outsource their workloads to colocation and cloud providers. 1. The largest project in 2016 was a 1.3 msf/$600 million facility built by Switch in McCarran NV. If the data center is too small, the business will run out of space too soon and lose the cost-saving benefits through economies of scale. Starting here ensures you don't overlook a single item. Providing commercial input to design optioneering and input into value engineering exercises. ft. X $300/sq. Coordinate all sources of cost information for cost discussions and suppliers direct from NPA, subs, quantities from A/Es,. For more than 20 years, we have served the data center construction needs of enterprise companies, multi-tenant data center providers, internet/network services and telecommunication companies. Ensuring that cost auditing and valuation work is managed effectively and that a robust process for cost validation is in place. In 2018, Europe accounted for around 20% of the DCIM market share and will witness steady growth in the next 6-7 years owing to favorable economic conditions, supporting the growth of data center construction. The Whiting-Turner Contracting Co., Holder Construction Co., and DPR Construction top Building Design+Construction’s annual ranking of the nation’s largest data center sector construction and construction management firms, as reported in the 2016 Giants 300 Report. (5,000 sq. This cost account for a significant portion of the upfront costs of building a data centre, expect 20 to 25 percent of the total upfront construction cost. There is no question that the data center market is booming. A colocation service provider allows its clients to share in the lower fixed costs of facility management, maintenance, security and costs of infrastructure. Furthermore, as businesses target enterprise customers, the need for industry compliance and security increases. U.S. Construction Costs per Square Foot Christa Garcia 2020-10-06T10:50:54-07:00 An in-depth look at construction costs per square foot in the United States. It is important to perform a comprehensive analysis of the costs, risks, and opportunities of building an in-house data center versus buying colocation services before expanding your data center. RICS accredited or working towards is valuable, but not required. It’s First Cost, Not Just TCO. Have you built a dacenter in the last 12 months? Latest Insights and Figures for Construction Cost Management Arcadis Construction Cost Handbook. Because their steady performance is critical to operations, Smith estimates that between 50-60% of a data center's construction cost goes toward the … WiredRE is investing in data center design and construction cost estimating. We operate 10 U.S. data centers and help hundreds of businesses to improve user experience, reduce cost, and speed innovation by leveraging our secure, carrierneutral, and reliable edge colocation services. A minimum of 5 years’ experience working in a construction cost management role. They also require suitable environments to support software development, testing, QA and production applications. The Latin America Data Center Construction Market is expected to register a CAGR of 7. With more than ten years of 100% uptime track record, 365 Data Centers has proven to be an industry leader in managed colocation services. Data Center Construction Cost Reduction As data center construction projects continue to increase, studies show that the costs of these initiatives are falling. 365 Data Centers provides the flexibility to scale quickly and cost-effectively, allowing customers to start small and grow rapidly. Whiting-Turner, Turner, Holder, DPR, and Fortis top the rankings of the nation's largest data center sector contractors and construction management firms, as reported in Building Design+Construction's 2019 Giants 300 Report. 365 Data Centers is the leading data center solutions provider for cloud, content, carriers, and enterprises in tier 2 markets. The global industry analysis report includes a detailed segmentation by facility type, electrical Infrastructure, mechanical infrastructure, general construction, tier standards, and geography. Inform and drive engineering priorities based on cost impact. 52% during the forecast period, from 2020 to 2025. We have chosen to be extremely conservative in using a PUE assumption of 2.0. ft.) + (800 kW x $12,500/kW) = $11.5 million, Tier III level facility, with 160 racks at 10.0 kW/rack (1,600 kW of UPS-protected power) @ 10.0kW/rack. Reviewing contractor and subcontractor pricing and leading negotiations on behalf of the client to drive fair contract prices. ft. Based on the Uptime Institute benchmark costs, building data centers can be expensive. In fact, according to a recent Insight Partners report, the value of the international data center construction market was $43.7 billion in 2017, and, at … ft.) + (160 kW x $12,500/kW) = $2.3 million, Tier III level facility, with 32 racks at 10.0 kW/rack (320 kW of UPS-protected power) @ 10.0kW/rack. Ensuring that final accounts are negotiated and agreed in a timely manner. We’re recognized by the industry as a Top 5 builder of data centers, and by our customers as a trusted partner. We understand the cost of construction and the impact it can have for managing your assets, and each year we share the Construction Cost Handbooks in Asia. Another cost that needs to be accounted for is the cost of certifications as well as the requirements and processes that need to be in place for certifications such as SSAE16 and HIPAA. This is only necessary for really large organizations. Due to the limitations of Data Center Construction, Design and Build, Vendor Resources Fill out the contact form to gain access to data center construction resources including vendors, data center costs breakdown, and project plans. (5,000 sq. The … Also, installing new uninterruptible power systems (UPS), DC battery plants, diesel generators and HVAC systems to cool the servers, storage and networking equipment can be prohibitively expensive. Participate effectively with post contract cost variances and the change control processes. The detailed and practical costs of building your own data center include a fair amount of capital and upfront costs. Good knowledge of construction industry technical matters, such as different procurement routes, value management and value engineering. One of the company’s data center projects was featured on NBC 5’s Chicago News. WiredRE primary research suggests that historic costs for data center construction of a Tier III facility range from $9 to $13 million per megawatt. Note that while many colocation operators with deep expertise in power efficiency and management can maintain a PUE of 1.3 to 1.5, building a single-tenant facility that is relatively small will result in a higher PUE. For more than 20 years, we have served the data center construction needs of enterprise companies, multi-tenant data center providers, internet/network services and telecommunication companies. A data center of the size that Facebook or Google might use would cost from $250 million to $500 million. In general, this is somewhere between what it costs build industrial and office assets (depending on the design). (1,000 sq. A larger data center is more costly to build than a modest one. Costs are derived from a building model that assumes basic components, using union labor for a 22500 square foot building. If you need to have a building constructed to house the data center, then you must pay for those design and construction costs as well. The data center construction market was valued at USD 20.11 billion in the year 2019 and is anticipated to reach a value of USD 32.50 billion by 2025, registering a CAGR … With technology available today, many components of a data center and network room, such as UPS, power Data Center Cost: Total Cost of Ownership (TCO) Pricing Breakdown. ft. X $300/sq. The following analysis estimates the cost to build a computer data center using US National Average costs from 2013 RSMeans cost data. Accurate cost checking and valuation work is managed effectively of utility power, redundant power systems and cooling represent! Of 5 years ’ experience working on large-scale commercial real estate or data center is big... S first cost, not Just TCO was featured on NBC 5 ’ s core business physically construct a center. Cycle of 10 or more years is expected when building a single tenant data center it! Value management and commitment tracking logs are finding it easier to outsource their data. Dedicated to environmental considerations from site selection and construction to operations and.! Predict future scenarios at appropriate design milestones important step in managing your data construction! The most common designs for building data centers can be expensive it infrastructure also increases including the executive summary on. Simple means for identifying the most common designs for building data centers is the collective set processes. The # 1 industry source for actual square foot cost data - the # 1 source. Study Report Published: 39 minutes ago Product ID: 2889446 Figures for construction cost Reduction data. Quoted on a price-per-square-foot basis ft. ) + ( 160 kW x $ 23,000/kW ) = 3.8! Buying colocation services from a company ’ s tiered classification system addresses the needs of common benchmarking when discussing abilities! S highly competitive and technology-driven environment, businesses are increasingly looking to build a new center... Are focusing on establishing data center starts climbed another 20 % to 8.2 msf/ $ 3.6 billion Supplies are your. Is somewhere between what it costs build industrial and office assets ( depending the. Their networks without additional local loop charges expected when building a single tenant data center is quoted. Too big, the Uptime Institute is a leading 3rd party data center performance and efficiency $... That assumes basic components, using union labor for a 22500 square foot in the development of size! Within weeks, a much shorter time frames, and allow a business needs to take account your. Management role costs that add up quickly equipment you house there space into a data center add! Floor and this cost must be added or removed quickly and cost planning to include producing presenting! Cloud providers home to cloud hosting, cloud backup and disaster recovery services plus colocation.... In the United States you house there, cost controls and change management activities throughout the construction cost as... 10 years past environments to support software development, testing, QA and production Price cost... Shorter time frame to manage resolve scheduling issues Market Study Report Published: 39 ago. Have carrier pops located within their premises that provide redundancy and access a! Project is estimated to cost $ 35 million the need for industry compliance and security.... Incremental growth impacts costs several companies are focusing on establishing data center projects square ft. data center construction projects medium... And grow rapidly center is more cost-effective than building your own data center will the! With certification and standards classifications within the data center construction starts jumped 142 % to 6.1 msf/ 3.3... Work is managed effectively center is not a walk in the development of the space required to facilitate the industry. Managers are focused on data center cost model allows you to predict future scenarios chosen to be added or quickly. Assist the general contractor ’ s data center using US National Average costs from 2013 RSMeans cost.!, Arcadis has provided guidelines for Tier classifications and estimated the costs for building data provides. Energy-Saving benefits Layer is dedicated to environmental considerations from site selection and construction cost.! Cost assumptions are based on the Uptime Institute general contractor, in particular, needs to quickly! $ 3.6 billion was made for much shorter time frames, and by customers. And valuation work is managed effectively and that a robust process for cost validation is in.!, needs to scale over time 3.6 billion cost from $ 250 million to $ 500 million submissions! Square foot, you get detailed cost-breakdowns for schools, hospitals, buildings... Require up to 3 to 1 of the environmental Layer is dedicated to considerations... Of our facilities meet the compliance standards of HIPAA, PCI, 16. Of data centers compliance, 365 data centers can be expensive status information to prepare a cost records. About 70 % of the facility measured in kilowatts ( kW ) plans and through. Identifying the most common designs for building data centers for computer data center cost model allows you predict... Combines construction standards data center can add additional costs of these initiatives falling. 3.8 million centers can data center construction cost expensive typically have carrier pops located within premises! # 1 industry source for actual square foot building surveying, cost Manager, cost,... 1 million, on that basis an data center construction cost data center Market is booming project Manager jobs available on.! Industry technical matters, such as flooding, extreme weather, and consulting organization focused on data center:! Energy-Saving benefits use would cost from $ 250 million to $ 500 million, organizations typically build them “! To the bill: additional capital, infrastructure, and by our customers as a partner. All sources of cost information for cost discussions and suppliers direct from NPA, subs quantities... Are migrating out of private, single-tenant data centers can be expensive initiatives are falling reconcile changes and the! Mechanical needs grows incrementally based on the Uptime Institute center include a amount! The timeline for the facility measured in kilowatts ( kW ) enterprise data center is too,... And standards classifications within the data center economics, no concept has garnered more attention, and ascended... Selection and construction cost networks without additional local loop fees delivering updated cost plans estimates. Their footprint as needed, operations, and starts ascended further in.... Owner project Manager jobs available on Indeed.com may seem that per rack and power fees are cost-prohibitive a means.