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What Does Data Center Installation Cost Most Tenants?
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Many factors impact the end cost to tenants and these variables continue to evolve
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But the consensus among experts is that the U.S. data center market
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has basically reached its lowest point when it comes to pricing and firmer pricing is expected to follow soon
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Multi-Tenant Data Centers Keeps Costs Down
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Over the past five years, there has been a steady drop in data center pricing as competition increased
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Another trend that’s popping up again is the convergence of IT and infrastructure
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(and data centers are also becoming IT service providers)
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As a result, multi-tenant data centers have started to offer much more than managed or cloud services
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This in turn will see colocation providers continuing to focus on large, strategic, wholesale deals and make their money on higher margin clients
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Data centers have started to spread out far and wide increasing competition and driving prices down
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As customers have become better at evaluating their own colocation needs,
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providers have now started to deliver customized space making the price vary within each feature
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Building vs. Outsourcing
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Outsourcing is always going to be more cost effective than building your own colocation center
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According to Forrester, the average cost is around $200 per square foot to build a colocation center
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Further, the fiber installed on site can cost more than $10,000 per mile to reach the site
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There will also be a need for staff, maintenance, cooling, and 24/7 monitoring which will all add to the expenses
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The major benefit of owning your own data center is total control over security, operations, data, and the environment
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Data center installation pricing is relative and on average you can expect rack space to cost anywhere from $100 to $300 per month per unit
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This price usually includes IP addresses and a preset allotment of bandwidth
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Further, server monitoring will be a separate service and cost you anywhere from $75 to $400 per server per month
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Finally, depending on the number of servers that need to be migrated,
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there will also be an initial setup cost that can run anywhere from $500 to $3,000 for engineering labor
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How well do you understand installation costs for a data center?
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What’s the biggest mistake that novice buyers make?
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Share your thoughts in the Comments below
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Recommended ReadingLearn How Multi-Tenant Colo Providers Can Develop a Scalable, Data-Driven, Marketing and Sales Funnel That Powers Growth
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