Lease or Build a Data Center?

Build Data CenterAs your business grows, you may be faced with many decisions. One of those decisions may be to either build a data center or lease one. This usually comes up as you start to realize you don’t have enough capacity, power or HVAC ability to grow any further than you already have with your in-house data center.

When this happens, it’s important to look at the advantages of both leasing and building a data center. It’s a very big decision, which you need to take seriously. Here are some of the advantages of both.

Building Your Own Data Center

When you build a data center it comes with some pretty obvious benefits, such as you own it and you have full control. However, there are many other advantages. With complete control, you will be able to set up the power, operating environment, humidity, temperature and security to fit your needs and what you want.

Along with the control, you will have the ability to maximize the space as you see fit. You can share it with another company or you can use it all for yourself. There’s also no risk of losing your lease because you own the data center.

Leasing a Data Center

Lease Data CenterOf course, leasing a data center also has advantages. You will have more predictable expenses and the flexibility to add capacity as needed. Some prefer the advantage of being able to scale up and down, as needed.

With a leased data center, you also have the ability to gain more space without the same capital expense. Most providers will also give you access to certified professionals when you need help.

Factors to Consider With this Decision

There are several factors to consider outside of your budget when it comes to leasing or building a data center. First, you want to consider your data growth. Will you be growing fast and furious or will it be steady and over time?

Data already doubles about every two years in the digital world, so you may want to consider how quickly your data needs will be on the rise. It’s predicted that the digital world will use about 44 trillion gigabytes of data by 2020. What will your company’s use be by then?

Second, you want to consider virtualization. Virtualization is growing fast and will continue to grow very fast. With the ability to reduce power consumption and cost needed to run data centers, visualization should be a factor in your decision for sure.

Finally, consolidation is another thing to consider. This is a strategy used by many companies to reduce IT assets and make technology more efficient. It may also be called data center consociation.

Sometimes, it only makes sense to build a data center, while other times it makes sense to lease. Some companies actually leverage both. It’s important to look at the benefits, costs, risks and how you will use the data center before making your final decision.

Data CenterThe cost, alone, may be a deciding factor. Building a data center will take a large capital expenditure up front with about 25% of the construction costs usually needed just to get things started. You will also need to pay for security setups, building permits, fire suppression, HVAC units, UPS equipment, data center staffing and so much more.

With leasing or colocation, you won’t need to spend nearly as much. Some upfront costs may be necessary for setup and moving, but the initial expenses will be much lower compared to building a data center. You will also only need to pay for the metered or flat rate for power, along with cross connection fees and some staffing fees. Usually, you’ll have a set price for your needs, which makes it easy to predict.

Make sure you consider all of the factors before choosing to lease or build a data center. It’s a big decision and will either help or hurt your business in the future.











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