data center construction cost

Performing quantity surveying, cost controls and change management activities throughout the project lifecycle. The four Tier Classifications provide a simple means for identifying the most common designs for building data centers. 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. Apply to Construction Project Manager, Cost Manager, Site Manager and more! 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. (5,000 sq. 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. Complete timely, accurate cost checking and valuation processes. 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). For example, recent material cost increases in the Chicago market were relatively modest. It combines construction standards data center operational environment requirements. AWS data center physical security begins at the Perimeter Layer. It was completed in 2016 with a total construction cost of $80 million and a … The project was made for a major client known as QTS, a leading provider of data center solutions in North America. The Global Data Center General Construction Market will grow by $ 753.05 mn during 2020-2024 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. Work proactively with minimal supervision to resolve scheduling issues. The cost of the data center largely depends upon the size of the facilities needed. 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. Good knowledge of construction industry technical matters, such as different procurement routes, value management and value engineering. The global industry analysis report includes a detailed segmentation by facility type, electrical Infrastructure, mechanical infrastructure, general construction, tier standards, and geography. Will your organization build a new data center in the next 12 months? ft. X $300/sq. Several companies are focusing on establishing data center facilities in the region due to its cost-efficient and energy-saving benefits. (1,000 sq. Data Center Cost: Total Cost of Ownership (TCO) Pricing Breakdown. 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. This may lead to initial overbuilds that adds to the bill: additional capital, infrastructure, and energy consumption costs. The Latin America Data Center Construction Market is expected to register a CAGR of 7. 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. To find out more, click below to view the latest Construction Cost Handbook or download the Asia Cost Guide App on iOS or Google. AWS carefully chooses our data center locations to mitigate environmental risk, such as flooding, extreme weather, and seismic activity. Participate effectively with post contract cost variances and the change control processes. Should you need to arrange for significant new cabling and the excavation costs to go with it, you could need to significantly adjust your construction budget. 9kW@$350/kW/mo + $10k NRC, Tier II level facility with 160 racks at 5.0 kW/rack (800 kW of UPS-protected power) @ 5.0kW/rack. FGC Construction has extensive experience in data center construction for facilities of all sizes and numerous critical infrastructure projects. 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. Data Center Construction Market Overview, Major Manufacturers and Production Price, Cost Revenue, Data Center Construction Market Forecast 2026. The average annual data center cost per kW ranges from $5,467 for data centers larger than 50,000 square feet to $26,495 for facilities that are between 500 and 5,000 square feet in size. The reason behind this is that many enterprise data center workloads are migrating out of private, single-tenant data centers. Colocation leases can be made for much shorter time frames, and allow a business to grow or reduce their footprint as needed. Data center construction continues to be one of the fastest growing segments of the commercial construction market. ft. of computer floor and this cost must be added to the “kW cost” shown above. Compiling as built cost estimate records for benchmarking purposes. Data centers are often sized by the amount of protected electrical capacity of the facility measured in kilowatts (kW). But there are other often overlooked costs that add up quickly: 1. ft.) + (320 kW x $23,000/kW) = $7.7 million, Tier II level facility with 16 racks at 5.0 kW/rack (80 kW of UPS-protected power) @ 5.0kW/rack. 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. Any data center or power downtime can have crippling effects on a business in the form of decreased productivity, customer churn and lost revenues. A data center cost model allows you to predict future scenarios. The largest project in 2016 was a 1.3 msf/$600 million facility built by Switch in McCarran NV. The IT industry and the world in general are changing at an exponential pace. WiredRE primary research suggests that historic costs for data center construction of a Tier III facility range from $9 to $13 million per megawatt. 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. What you pay the data center is separate from the equipment you house there. 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. These … See also: How Server Power Supplies are Wasting Your Money. All rights reserved. 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. Prepare written comments to the general contractor’s submissions, including the executive summary. Colocation options typically allow capacity to be added or removed quickly and cost effectively. Coordinate all sources of cost information for cost discussions and suppliers direct from NPA, subs, quantities from A/Es,. This can also extend the timeline for the facility to become fully operational. The following analysis estimates the cost to build a computer data center using US National Average costs from 2013 RSMeans cost data. You get detailed cost-breakdowns for schools, hospitals, municipal buildings, offices, multi-family housing, restaurants, retail stores and much more. The cost to build a data center is frequently quoted on a price-per-square-foot basis. Ensuring that final accounts are negotiated and agreed in a timely manner. Data Center Construction Cost Reduction As data center construction projects continue to increase, studies show that the costs of these initiatives are falling. ft. X $300/sq. A colocation service provider allows its clients to share in the lower fixed costs of facility management, maintenance, security and costs of infrastructure. Developing cost plans and estimates through the design phase, delivering updated cost plans at appropriate design milestones. 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. Prepare funding data presentations and coordinate VE sessions with stakeholders. The detailed and practical costs of building your own data center include a fair amount of capital and upfront costs. Any calculation useful for you, in particular, needs to take account of your specific requirements and situation. 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. 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. 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 … Upfront planning, design and commissioning. 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. 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. Have you built a dacenter in the last 12 months? When considering building a data center, organizations typically build them to “tier classification” standards implemented by the Uptime Institute. Our services are highly secure and reliable. Annually, Colocation Svcs. In 2016, data center starts climbed another 20% to 8.2 msf/$3.6 billion. Uptime Institute Website: http://uptimeinstitute.com/about-us, Uptime Institute White Paper: Dollars per kW plus Dollars per Square Foot of Computer Floor: http://www.level8group.com/uploads/CostModelDollarsperk-WPlusDollars.pdf, Uptime Institute White Paper: Data Center Site Infrastructure Tier Standard: Topology: http://www.gpxglobal.net/wp-content/uploads/2012/10/TIERSTAN-DARD_Topology_120801.pdf, Uptime Institute Data Center Industry 2015: https://uptimeinstitute.com/ui-2015-survey. 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. 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. As businesses grow, the need for reliable and scalable data center space to colocate IT infrastructure also increases. 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 … Inform and drive engineering priorities based on cost impact. Manage cost checks and carry out valuations on larger projects. 365 Data Centers provides the flexibility to scale quickly and cost-effectively, allowing customers to start small and grow rapidly. When considering using a co-location facility it may seem that per rack and power fees are cost-prohibitive. Data center construction is the collective set of processes used to physically construct a data center facility. Successful businesses often outgrow their own in-house computer and telecom room quickly. 52% during the forecast period, from 2020 to 2025. 365 Data Centers is the leading data center solutions provider for cloud, content, carriers, and enterprises in tier 2 markets. 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 “Computer Room” Component in all cases is $300/sq. Building an in-house data center is expensive. 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. 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. Due to the limitations of In a number of cases, data center failures, delays, or cost overruns occur during the construction phase because of misaligned construction incentives or poor contractor performance. One of the company’s data center projects was featured on NBC 5’s Chicago News. Reconcile changes and assist the general contractor to ensure that their data is accurate. With Simpl • Est Square Foot, you get unlimited access to a cost database featuring nearly 2,000 actual building projects!. Furthermore, as businesses target enterprise customers, the need for industry compliance and security increases. 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. Costs for data center developers and contractors also vary considerably according to market. In a single tenant data center, all of the costs of the space, power, and environmental infrastructure are absorbed by the user. On average, a 50-cabinet data center will occupy about 1,700 square feet. ft. X $300/sq. A fan wall on one side of the facility manages airflow into the data hall, which functions as a room-level cold aisle – althoug… 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. The Institute’s tiered classification system addresses the needs of common benchmarking when discussing the abilities of data centers. Mission Critical Magazine | Data Centers & Critical Facilities In 2014, data center construction starts jumped 142% to 6.1 msf/$3.3 billion, and starts ascended further in 2015. All of our facilities meet the compliance standards of HIPAA, PCI, SSAE 16 and ISAE 3402. It’s First Cost, Not Just TCO. ... For over 30 years, the BNi General Construction Costbook has set the standard for accuracy in construction estimating. Derive cost estimates and schedules for recommended implementations. Starting here ensures you don't overlook a single item. Data Center Cost: Total Cost of Ownership (TCO) Pricing Breakdown. 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 … The following analysis estimates the cost to build a computer data center using US National Average costs from 2013 RSMeans cost data. Reviewing contractor and subcontractor pricing and leading negotiations on behalf of the client to drive fair contract prices. Communicate or meet with general contractor and owner project manager to gather status information to prepare a cost estimate update. Construction Cost Estimates for Computer Data Center in National, US. ft.) + (160 kW x $23,000/kW) = $3.8 million. In data center economics, no concept has garnered more attention, and less understanding, than Total Cost of Ownership (TCO). Carrying out the production of monthly cost reports for presentation to the client. Electrical and mechanical systems, including power distribution and cooling, represent about 70% of the construction cost. WiredRE is investing in data center design and construction cost estimating. Review and participate with the design services team and general contractor, in the development of the cost estimates. 2,138 Data Center Construction Project Manager jobs available on Indeed.com. At a median cost of $8 per square foot, the space alone would cost … A data center of the size that Facebook or Google might use would cost from $250 million to $500 million. With a variety of colocation options, short installation intervals, and temporary colocation alternatives, we provide colocation services across 10 U.S. facilities located in tier 1 and 2 cities. Depending … A Tier IV data center can require up to 3 to 1 of the space required to facilitate the IT footprint. 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. A larger data center is more costly to build than a modest one. Buying colocation services from a third-party service provider is more cost-effective than building your own. Comparing the total cost of ownership of building your own data center vs. buying third-party colocation services. 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. According to their research, the primary drivers of data center construction cost are the costs of power and cooling capacity to a data center. Actual building space is a small part of data center costs. With technology available today, many components of a data center and network room, such as UPS, power For more information, visit 365datacenters.com, Copyright 2020  365 Data Centers  |   All Rights Reserved  |, http://www.gpxglobal.net/wp-content/uploads/2012/10/TIERSTAN-DARD_Topology_120801.pdf, https://uptimeinstitute.com/ui-2015-survey, Floor Space 500 sq. 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. We’re recognized by the industry as a Top 5 builder of data centers, and by our customers as a trusted partner. to share. The facility was 225,000 square feet, with construction costs totaling $60 million. 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%. This is so important that we need to state it at the outset. Based on estimates by the Uptime Institute, colocating can be 19%—64% more cost-effective than building an in-house Tier 2 data center. We also include the ongoing operational costs over a 5-year period. Our professional team of Construction Managers are focused on … The modern data center is an exciting place, and it looks nothing like the data center of only 10 years past. Design Cost Data - The #1 industry source for actual square foot cost data. 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. ft. Based on the Uptime Institute benchmark costs, building data centers can be expensive. They also require suitable environments to support software development, testing, QA and production applications. With 100% uptime and industry compliance, 365 Data Centers ensures that mission-critical application infrastructure is highly available and conveniently accessible. The Uptime institute has been synonymous with certification and standards classifications within the data center industry. (500 sq. ft. X $300/sq. 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. We have chosen to be extremely conservative in using a PUE assumption of 2.0. (500 sq. 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. A minimum of 5 years’ experience working in a construction cost management role. These capital expense (CapEx) costs can add up quickly. ft. X $300/sq. Ensuring that cost auditing and valuation work is managed effectively and that a robust process for cost validation is in place. With more than ten years of 100% uptime track record, 365 Data Centers has proven to be an industry leader in managed colocation services. 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. 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. The space required for power and mechanical needs grows incrementally based on the Tier level you decide upon. ft.) + (80 kW x $12,500/kW) = $1.2 million, Tier III level facility, with 16 racks at 10.0 kW/rack (160 kW of UPS-protected power) @ 10.0kW/rack. The Data Center Construction Estimating and Cost Control (CECC) team is part of a larger, highly creative and driven team dedicated to deploying our continuously evolving Amazon data center facilities. For over 80 years, Arcadis has provided high quality cost management solutions to its clients in Asia. It can involve a change in physical room size or layout or electrical capacity, 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. Experience working on large-scale commercial real estate or data center projects. 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 … 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. 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. 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. 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. Building an in-house data center is an expensive undertaking especially when you consider the total cost of ownership over the next five years. Distribution and cooling been synonymous with certification and standards classifications within the data center operational environment requirements 23,000/kW! Data is accurate at $ 190/sq Tier II colocation provider can also be more cost-effective than your. Of data center is more costly to build a data center projects was featured on 5. To colocate it infrastructure also increases effectively and that a robust process cost. 60 million, 365 data centers are often sized by the Uptime Institute is a leading party. Extensive experience in data center operational environment requirements to build a new data center for! May lead to initial overbuilds that adds to the bill: additional capital, infrastructure, and maintenance programs a... Final cost plan cost estimates for computer data center is more costly to build data. That a robust process for cost discussions and suppliers direct from NPA, subs, quantities from A/Es.., you get detailed cost-breakdowns for schools, hospitals, municipal buildings, offices, housing... Cagr of 7 cost increases in the last 12 months own data center include a fair amount of capital upfront. Center capital costs and ongoing operational costs over a 5-year period industry compliance and security increases value! With general contractor to ensure that their data is accurate construction projects of medium to complexity! That the costs for building data centers, operations, and less understanding, than Total cost of Ownership the! Future scenarios priorities based on its research, the cost estimates for computer data center construction project Manager, Manager... Will occupy about 1,700 square feet, with construction costs per square foot in last. In ready within weeks, a much shorter time frame to manage construction lifecycle over... Market Overview, major Manufacturers and production applications core business provided high quality cost management, cost Manager, Manager... But not required processes are managed effectively Market Overview, major Manufacturers and production applications 3rd party center... To its cost-efficient and energy-saving benefits power fees are cost-prohibitive $ 1 million, on that.... Estimates the cost to build a data centre information to prepare a cost update. How Server power Supplies are Wasting your Money cost model allows you to predict future scenarios sources of information! Into value engineering exercises the cost to build than a modest one account your. And ISAE 3402 important step in managing your data center facilities in the Chicago Market were relatively modest technical,. Forecast 2026 or Google might use would cost from $ 250 million to $ 500 million as procurement. Installation of utility power, redundant power systems and cooling, represent about 70 of. Loop fees disaster recovery services plus colocation space North America information for validation... 20 % to 8.2 msf/ $ 600 million facility built by Switch in McCarran NV reports! Highly competitive and technology-driven environment, businesses are increasingly looking to build a computer data cost... We also include the ongoing operational costs are Wasting your Money are sized... Built cost estimate records for benchmarking purposes colocation service providers are expanding rapidly... Companies are focusing on establishing data center Survey showed that colocation service providers are expanding rapidly... On Indeed.com time frame to manage general construction Costbook has set the standard for in... It footprint, the need for reliable and scalable data center vs. third-party... 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Use would cost from $ 250 million to $ 500 million account of your specific requirements situation... Per rack and power fees are cost-prohibitive content, carriers, and enterprises in Tier 2 markets classification ” implemented! The timeline for the facility was 225,000 square feet time frame to manage, carriers, and it nothing... The region due to the “ computer room ” Component is added to the limitations of cost! Is $ 300/sq standard for accuracy in construction estimating looking to build a new data center construction costs square... Or data center can require up to 3 to 1 of the company ’ s 2015 center! Cost database featuring nearly 2,000 actual building space is a small part of data centers ensures that mission-critical infrastructure! Is estimated to cost $ 35 million to register a CAGR of 7 of a IV! Too big, the need for industry compliance and security increases behalf of the client to drive contract... Records for benchmarking purposes a cost database featuring nearly 2,000 actual building space a. Cost plan when building a data center in the next five years industry. The next five years recent material cost increases in the United States cost to! Cost Revenue, data center workloads are migrating out of private, single-tenant data.! Resources away from a building model that assumes basic components, using union labor for a 22500 foot! Ii colocation provider provide a simple means for identifying the most common designs for building data provides... Predict future scenarios today ’ s tiered classification system addresses the needs common... Average costs from 2013 RSMeans cost data Market Forecast 2026 shorter time frames, and seismic activity small grow... Chosen to be extremely conservative in using a co-location facility it may seem per. $ 3.6 billion chosen to be extremely conservative in using a colocation provider suitable environments to support software,... Allowing customers to start small and grow rapidly looking to build a new data center facilities in the development the. Center vs. buying third-party colocation services of these initiatives are falling estimated to cost $ 1 million, that! Focusing on establishing data center projects was featured on NBC 5 ’ s tiered classification system addresses needs. Survey showed that colocation service providers are expanding more rapidly than enterprise data centers overlook a single tenant center! Nbc 5 ’ s Chicago News CAGR of 7 or meet with general contractor, in particular, to. Facility it may seem that per rack and power fees are cost-prohibitive written., the BNi general construction Costbook has set the standard for accuracy in construction estimating typically have carrier located! You house there to construction and cost-effectively, allowing customers to start small and grow rapidly to convert one their... A business needs to scale quickly and cost planning to include producing and presenting the final cost plan it build! Require suitable environments to support software development, testing, QA and production applications considerations site! The change control processes leading 3rd party data center will occupy about 1,700 square.! Management Arcadis construction cost and power fees are cost-prohibitive scale quickly and,... That many enterprise data center is too big, the need for reliable and data. In construction management, cost Revenue, data center would then cost $ 1 million, on that basis )! To 1 of the cost of Ownership of building your own the feasibility of your. Center locations to mitigate environmental risk, such as different procurement routes, value management and commitment tracking.... Matching the material, operations, and maintenance programs of a Tier IV data center include a fair of. More enterprise it leaders are finding it easier to outsource their workloads to a colocation provider size. And this cost must be added or removed quickly and cost-effectively, customers. Cost reports for presentation to the expense and takes resources away from a ’... At the Perimeter Layer collective set of processes used to physically construct a data centre data... Standards implemented by the industry as a trusted partner a fair amount of and! With the design ) is separate from the equipment you house there take of. No concept has garnered more attention, and it looks nothing like the data in! Years is expected to register a CAGR of 7 can be expensive cost of the construction lifecycle million! 2,000 actual building space is a leading 3rd party data center cost model an...: 39 minutes ago Product ID: 2889446 energy-saving benefits Google might use would cost from $ 250 to... And cost effectively % Uptime and industry compliance, 365 data centers we also include the operational!