Data centers have become one of the most important components of IT infrastructure. It’s hard to find a company or organization that isn’t reliant on the internet and computing for a variety of services and products, and connectivity and cloud resources within the environment of a data center have become integral in powering solutions and constructing networks. It’s the heart of many companies, the thriving, beating organ that keeps everything flowing smoothly.

Naturally there are a ton of benefits to supporting a data center. But one question that every company might ask itself is whether to own and build its own data center facility or to partake in a colocation option, which would be where the company would rent a building as a space for servers and other machines? There’s a lot to think about when weighing these options. Let’s dive in.

Constructing Your Own Data Center

Who doesn’t want to have their own data center? This is probably the most ideal option, but it’s not a surprise that building your own data center is the most expensive route. Sure, you have the comfort and security of having your own data center, but this is not always financially practical for every company. According to Forrester research firm, the average cost to build a data center is $200 per square foot. Not included in this price tag is the property purchase, permits, taxes, and even supplying the center with the appropriate data center furniture.

Of course, after the building is constructed, that’s not the end of expenses. Security systems would need to be installed, as well as fire suppression and cooling systems. Then you have to think about network connectivity and hiring the right staff members. Remember, since it’s your data center, you’re responsible for everything. One of the most underrated but crucial factors when it comes to data center expenses is hiring the right personnel. After all, you’ll want to make sure you have a top-notch staff to go with your first-rate data center.

Here’s a breakdown of the Pros and Cons of building a data center.

Pros

Cons

Colocating a Data Center

If you’re looking for the most cost-effective option, then colocating a data center is the best route for your company or organization. Most companies go with this option, since the operational costs alone can put some companies in the red. Having that operational expense can weigh an organization down and limit them from being able to invest in more state-of-the-art technology and resources. Also, since you don’t have to worry about upfront costs, most of the money you spend on colocating a data center can go toward power and cooling, which as you know are integral to the data center—and if something goes wrong in this area, you’re able to allocate money toward it rather than having to worry about ownership expenses.

This option is also more ideal for smaller and medium-sized companies because they’re able to provide more reliable assistance when it comes to security processes, compliance, and remote staff services. Even though you don’t have as much flexibility when it comes to ownership, businesses that decide to colocate a data center have more options when it comes to scaling up and down resources according to the challenges they face along the way

Here’s a breakdown of the Pros and Cons of colocating a data center.

Pros

Cons

Conclusion

Which option is right for your business? There’s a lot to think about when it comes to constructing your own on-premises data center versus partnering with a third party to colocate a data center. If you’re a large organization with more money and resources, then building a data center might be a good move since you can have more control and ownership. If you’re a small or medium-sized company, then colocating a data center is a great option, as you will save money and be able to allocate the remaining money to small-business adjustments. Plus, you’ll receive all of the same benefits of a large organizational data center at a fraction of the cost.

About Inracks

Inracks develops innovative Command and Control Room Furniture infrastructure solutions for a variety of clients. Most of the company’s early activities addressed custom design and manufacturing, which they found fit well with their principal core competency: creation of low volume, low cost solutions involving storage and racking of data processing equipment.