It’s hard to nail down that number with a high degree of accuracy.” “So what else do we rely on?” asked…, © CapRate Events, 2011-2020 It will also illustrate how a data center partner that can provide hyperconnected colocation through direct access to cloud providers can help you maintain your strategic edge. 221 River St., 9th Floor, Hoboken, NJ 07030 | 917.460.3572. And since there is so much variability in data center design and construction, the idea of using a cost per MW model across a portfolio of data centers in multiple markets is a risky measure. Data centres are vital to modern life and underpin how we, in the developed world, work, play and interact. The one-story building delivers 2.39 megawatts per acre, with each megawatt costing $7.65 million. At some point, every owner or general contractor operating in the mission critical space has been asked about their dollars per megawatt ($/MW) for a particular construction build. However, it is often unclear which if these costs are included in the $/MW for a specific build. But if you’re analyzing something in a tertiary market, where there is very little information, then your range in expected value is going to widen. In a larger 10-MW data center, the estimated annual cost reduction would be approximately USD 2.87 million. In this way, no unallocated overhead costs are created, and costs associated with data center or network room physical infrastructure can be more accurately and directly related to the IT infrastructure. 1. The following factors are the primary drivers of data center design, and each has a direct impact on cost: In this whitepaper from Skanska, you’ll learn that while these primary drivers are common across all data centers, no two data centers are designed to be exactly alike. Chicago [3]. The electricity costs associated with continuous operation of a data center are substantial; a standard data center with a thousand racks spread over an area of 30,000 ft2 requires about 10 MW of power for the Your email address will not be published. The Citadel, also owned by Switch, is the largest data center campus in the world as of … So, if it costs $10 Million USD a Megawatt to build one, then you’re seeing a lot of sales in the $15-$20 Million USD range. Viewing this content is free. It’s in charge of storing, managing and distributing data throughout the IT system. The difference is much starker if you compare the smallest data centers to the largest ones. 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. And most of the time that is expressed in dollars per kilowatt or dollars per megawatt. It is important to know watts (W), kilowatts (kW), and kilowatt hours (kWh). Without a dependable data center, the continuity of daily operations would be compromised. That makes sense. Conventional measures of efficiency used in commercial buildings do not apply when occupancy levels are 100 times lower than a conventional office and cooling loads 10 times higher. Depends on the scope of the question, actually. Bill Kleyman is a veteran, enthusiastic technologist with experience in data center design, management and deployment. The average cost of a kWh in the United States is $.139 cents per kWh. Data Center F also set a new quarterly best PUE performance for an individual facility at 1.08, improving on the previous best of 1.09 by Data Center E in Q1 2011. As the business grows, their need for a larger, more powerful and more secure data center will become imperative. Image Credit via Hosting Canada In the organization’s early days, it may be possible to get away with a small data center. “The sales comparison or market approach, some of you may already be familiar with,” began Williams. You need to know basic terminology before learning to calculate power usage and costs. Consider this – a recent NRDC report indicates that data center electricity consumption is projected to increase to roughly 140 billion kilowatt-hours annually by 2020, the equivalent annual output of 50 power plants, costing American businesses $13 billion annually in electricity bills. We are very grateful for your support over the years and expect to produce in-person conferences in 2021. Amps (amperes): The actual electrical current, or moving electrons, coming through the power lines. o Recurring cost of power. And you definitely can’t look to other sectors for a copy-and-paste example. And, most of all – How do you control ALL of the hidden costs behind $/MW? 1 MegaWatt at $0.1 (USD) per kw-hr, gives you electric cost (raw) of about $73,00 per month. While the expansion of cloud services presents an enormous opportunity for SaaS providers, it also brings new challenges. As more organizations place their environments into the data enter, energy efficiency and data center management have become extremely important for multiple reasons. See also: How Server Power Supplies are Wasting Your Money •2A 1000 W/ft2(10,764 W/m) data center costs about 8 times the cost of a 100 W/ft data center (per unit of floor area). Still, most clients tend to treat data the same way and the cost of this decision could be quite significant. Data centres have a unique set of cost drivers that are not necessarily driven by floor area. For comparing different methods, it is useful to compare costs per unit of energy which is typically given per kilowatt-hour or megawatt … Indications are that for some data centers this value can … What to expect: Although Tier IV, 2N data centers catch headlines, they are res… In a previous CapRE Insider Report, we covered Williams’ overview of the “cost approach” to valuation – and in this article we cover his explanation of other methods. Please enter your e-mail address and create a password to continue. costs, as no data centers are exactly alike. This is not ground-breaking science; it is common sense. Data Center Power Series – Part 4 . Several accumulating costs determine the total price of a greenfield data center, including design, land, substation requirements, utility costs, regional impacts, permit/entitlement Page 2 costs, site, building, MEP and commissioning (Cx) costs. Currently, Bill works as the Executive Vice President of Digital Solutions at Switch. PORTLAND, OR — Data center valuation is a critical part of the investment game. Site selection. So, if it costs $10 Million USD a Megawatt to build one, then you’re seeing a lot of sales in the $15-$20 Million USD range. LinkedinTwitterFacebookSubscribeMail. Complicator in Lease Renewals The new focus on power as a leasing benchmark creates some challenges for enterprise companies that use leased data center space, according to Jim Kerrigan, the director of the data center real estate practice at Grubb & Ellis. This new guide from CoreSite will highlight the challenges your SaaS organization faces in a competitive landscape. Speed – Savvy customers now expect construction cycles of six to nine months for new state-of-the-art data centers, as opposed to the 12 to 18 month cycles of only a few years ago. The costs include the initial capital, and the costs of continuous operation, fuel, and maintenance as well as the costs of de-commissioning and remediating any environmental damage. Due to COVID-19, CAPRE will be virtual-only for the remainder of 2020. That’s why CapRE invited Gene Williams, Senior Director & Group Leader for Cushman & Wakefield’s Data Center Valuation Practice Group to CapRE’s Second Annual Greater Portland Data Center Summit to shine some light on this opaque issue. 05 / Data centre cost drivers. According to the report, data centers currently consume about 31 GW, a report on energy consumption data included in the census concludes. Copyright Data Center Frontier LLC © 2020, We always respect your privacy and we never sell or rent our list to third parties. The dialog is wide ranging because data center facilities are complex, technology changes rapidly and owners/operators have disparate needs. 4 LEASING A DATA CENTER U. S. MARKET COST CO M PARISON N OVE M BER 2014 2014, CBRE, Inc. We analyzed a typical 1 MW, or 1,000 kilowatt (kW), data center lease over a seven-year term across 23 $115 million, or $5.1 million per MW, while the total construction cost per MW across the assets once fully built out is expected to average $6.5-7.0 million per … This is not a paywall and you will not be required to enter additional information. A comprehensive data center cost model must account for such variance in real estate price. Cost-Efficiency – Construction projects that cost $10 million per megawatt a few years ago are in the range of $7 million per megawatt today. Many devices are rated based on the amps they use or can support (such as outlets or circuit breakers). $900 – $2800 per sq ft. Actionable, fact-based insight into data center construction costs is the best way to avoid risks inherent in data center projects. For a well managed data center this value is usually about 2.0 (or less), which implies that for every Watt of server power, an additional Watt is consumed by the chillers, UPSs, air handlers, pumps, etc. Data Center Frontier provides a one-stop resource for the latest news and analysis for decision-makers navigating this complex new landscape. By downloading this White Paper you are agreeing to our. The levers are cost of power (in this caseI used 10cents per kw hour and the PUE - which I … The COVID-19 pandemic presents strategic challenges for the data center and cloud computing sectors. The key cost drivers are: And, a report from DataCenterDynamics indicates that the world’s data centers are expected to consume 19% more energy over the course of the next 12 months than they have in the past year. This is for illustration purpose only and we use the base rent, utility power cost and terms to calculate the savings. We tell the story of the digital economy through the data center facilities that power cloud computing and the people who build them. Scalable Attributes – Full vs. The COVID-19 Crisis and the Data Center Industry, Northern Virginia Data Center Market: The Focal Point for Cloud Growth, Winning the SaaS Game with Hyperconnected Colocation, Job Openings | Peter Kazella and Associates, Inc, Lead Electrical Commissioning Engineer - New York, NY, Department Head Electrical Engineer - New York, NY, Data Center Chief Engineer - San Antonio, TX, Data Center 101: Mastering the Basics of the Data Center Industry, Resiliency/Redundancy Requirements or “Tier” Make Up. I recently performed a cost comparison exercise for a client who had a 7.5 MW data center in the UK. Charting the future of data centers and cloud computing. Required fields are marked *. This would result in an estimated annual cost reduction of approximately USD 143,000 for a small 500-KW data center, based on electricity costs of 0.08 per KWH. 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. Electricity is measured in amps, volts, ohms, and watts. For more than 20 years, companies in data center site selection were driven by cost of power. Remember, informed decision-making is key to completing a successful data center project on budget, so take the time to examine your costs holistically and from multiple angles. Your email address will not be published. We write about what’s next for the Internet, and the innovations that will take us there. But that doesn’t mean it’s easy to understand. The data center is a centralized location where a company’s IT activities are managed. Without a doubt, the biggest cost in making a data center “rack ready” is the infrastructure. Think power systems, cooling, solutions, data center contracts and more. So if all of that density capability is not used … Data Center Frontier explores trends, stats and future expectations for the No. For sponsorship/exhibitor/speaking information about future in-person conferences or webinars, please contact, The Challenge of Data Center Valuation: Data Centers Are Unique Because You Value Power, Dollars per Kilowatt. The rapid evolution of data centers and data center infrastructure technology has brought about many definitions and opinions regarding industry terms, capacity calculation methods, and best practices used in data center environments. At the same time, the data centers that support these enterprises desire to maintain uptime while achieving the lowest cost per MW. You will immediately proceed to this page. By Bill Kleyman - May 31, 2017 Leave a Comment. Mission Critical Magazine | Data Centers & Critical Facilities $250 sq ft construction. Reduce data centre cost. Now, learn how to find and control ALL of the hidden costs behind $/MW. The average total power to rack is about 4.05 kW, with 58% of racks consuming 5 kW per rack, 28% consuming from 5 kW to 10 kW per rack and the rest consuming more than 10 kW per rack. When you’re working in a large metropolitan area, a core location, there should be plenty of data points in the data center business to identify a range in value. Data centers are at the heart of the modern business. For example, you have a server that requires 400W and it runs 24 hours. The Real Cost of a Data Center Build. Data Center Frontier, in partnership with Open Spectrum, brings our readers a series that provides an introductory guidebook to the ins and outs of the data center and colocation industry. These will span over 16 million square feet space with at least over 1,400 MW of IT power capacity, equalling nearly 0.6 million square feet and 50 MW per facility on an average per hyperscale data centre. The Northern Virginia data center market is seeing a surge in supply and an even bigger surge in demand. These costs can, of course, be much higher depending on the power, redundancy and availability requirements. In a one day period, your server would consume 9,600W or 9.6kWh. “It’s just based on data points. In fact, IDC reports that energy consumption per server is growing by 9% per year globally as growth in performance pushes demand for energy. It is also important to understand how volts (V) and amps (A) factor into the equation. First of all, you have to understand the design elements of a data center. New requirements around cloud, virtualization and user density has placed even more pressure on data center operators to deliver a powerful, and economical, solution. Dollars per megawatt is a misleading metric because there are no guidelines that define which costs should be included in a $/MW estimate, and individual owners and contractors define their $/MW differently. "In year four, our cost per kilowatt a month is about a third of what it would have been." That makes sense. data center tco comparison calculator Use this calculator to compare the Total Cost of Ownership (TCO) of having a data center in Sacramento compared to other locations. If your utility costs are $.139 per kWh, your daily costs to run your server are $1.248 per day or $37.44 per month. For example, while the construction cost of powered base buildings may range from $200 to $450 per square foot, turnkey data centers are reported to cost from $800 to $1,200 per square foot, or more, to build. Multiply that by a 1.5 PUE to get to 1MW of critical load and you are paying about 109k USD per month. Not surprisingly, variations between these primary drivers lead to cost differences between data centers that are not always evident from $/MW alone. Figuring out the difference between them can be a challenge if you're not an electrician or into DIY home repair, but it's really quite easy. While this is still true with hyperscale companies that look at cost per kWh, it also must be considered from a scalability factor, in some cases as high as 350 to 400 megawatt per site. In today’s data center conversation, there is considerable discussion of ideal topology, clean power, cost per MW, network connectivity (latency) and a myriad of “flavor of the month” issues. So, how do you keep up with the pace of demand? Partial Build-out of Facility. Charting the future of data centers and cloud computing. WiredRE primary research suggests that historic costs for data center construction of a Tier III facility range from $9 to $13 million per megawatt. Figure 40: A chart showing forecast average total customer power per UK Data Centre power per UK Data Centre facility from the end of 2015 to the end of 2020 in MW. data center power typically is used for mechanical cooling systems. However, more recent construction cost data from seasoned and experienced data center developers is ranging from $7 to $9 million per megawatt. Dollars per megawatt is a misleading metric because there are no guidelines that define which costs should be included in a $/MW estimate, and individual owners and contractors define their $/MW differently. Thank you for your interest in CAPRE: digital infrastructure + commercial real estate. Contrariwise, the cost per MW model is fixated on first cost only and does not account for a true data center development strategy. The Data Center 101 Special Report series is directed to those new to the industry, or those of our readers who need to brush up on the basics. Figure 41: A chart showing average UK Data Centre pricing per power bundle per rack in kW All of this translates to greater data center utilization rates and more power requirements. When TCO is expressed in a per-rack basis, the total cost of the data center or network room is allocated across the utilized racks. Globally, data center power consumption has been growing. $5 mill to $22 mill per MW. The Citadel. Not only are data center administrators working hard to cut costs – they’re also working overtime to minimize management overhead and improve infrastructure agility. From the switchgear, UPS, redundant chillers and generators, an N+1 data center encompassing 3.5 MW of sellable IT capacity can be between $280 per square foot and $350 per square foot (assuming a 100,000-square-foot facility). The baseline example of a legacy one-story data center has a surface area of just over 20 acres and has an initial cost of $306 million. 1 data center market in the country. Download this whitepaper today to better understand all of the costs and design considerations when working with your own data center project. As a result, $/MW is not always representative of the total price of a data center build. Some people would mean "building up a new facility", others just merely "setting up my company's infrastructure in existing facility". And most of the time that is expressed in dollars per kilowatt or dollars per megawatt. To maintain uptime while achieving the lowest cost per MW take us there in charge of storing, and., data center management have become extremely important for multiple reasons some of you May already be familiar,. Server that requires 400W and it runs 24 hours and most of the investment.... Continuity of daily operations would be compromised always respect your privacy and we never sell or rent our to... Center cost model must account for a true data center facilities that power computing. 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Center Frontier LLC © 2020, we always respect your privacy and we never sell or rent our to. This is not a paywall and you are paying about 109k USD month... A larger, more powerful and more question, actually Bill works as Executive! Grateful for your support over the years and expect to produce in-person conferences in 2021 watts ( W,! Disparate needs new guide from CoreSite will highlight the challenges your SaaS organization faces in a landscape..., $ /MW for a client who had a 7.5 MW data center selection. And an even bigger surge in supply and an even bigger surge in demand $ 5 mill to 22. Terminology before learning to calculate power usage and costs, coming through the power lines translates to data. By Bill Kleyman is a veteran, enthusiastic technologist with experience in data center facilities are complex, technology data centre cost per mw. Presents strategic challenges for the data center development strategy, cooling, Solutions, data center,. 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