Is the data center expansion plan a construction or acquisition plan?

Is the data center expansion plan a construction or acquisition plan?

Today, users' demand for data center space is growing exponentially. Data center enterprises need to implement more hardware to process and store big data. To build more data centers and deploy more hardware, enterprises need to purchase more land for construction, you may also need to work with data center suppliers to lease some existing data centers or acquire existing facilities. Enterprises of all sizes must go through a critical stage in building their own data centers or renting existing facilities. Enterprises need to analyze some problems, such as the construction cost, commissioning, maintenance, and management cost of the data center. Before deciding on the construction or purchase of a data center, we should evaluate all the costs.

Before deciding whether to buy an existing data center facility or a new device, the following are key considerations:

1. Creation Time

Generally, it takes 12-18 months to build a new data center. Assuming that existing customers need to expand the capacity of the data center, and the enterprises in the data center need to provide the required space in a shorter period of time, building a new data center will not be a good idea. The most feasible approach is to work with other organizations or companies to acquire a small data center.

2. scalability

Traditional data centers generally have a life cycle of 10 to 15 years, with at least five hardware update cycles. This may lead to over-construction, waste of money, expensive infrastructure and lower energy efficiency, because the servers are idle most of the time. Enterprises can lease data centers. Generally, leasing is short-term, about three to five years. This allows customers to increase their data center space based on their needs. Through cooperation, enterprises can reduce costs and increase more space.

3. Funds

The initial installation cost of building a new data center facility may reach thousands of US dollars. Enterprises can invest a lot of money or obtain financing funds from financing companies to build a new data center. In addition to investing in data centers, you can also rent existing data center facilities of data center suppliers, sign monthly or annual lease contracts, lease data center suppliers and provide consistent services to their customers, you can also expand your data center space based on your needs.

4. Location

Geographic location is one of the top concerns for companies planning to build their own data centers. It would be wise to seek cooperation with a data center provider that is co-located. enterprises can access the data center facilities frequently. Some companies have the idea of working with remote data centers to facilitate rapid disaster recovery or business continuity.

Advantages of collaborative data center positioning:

• Reduce initial costs

• Enhanced security features

• There is no need to focus on improvements and technological changes.

• You can enjoy the services of various service providers.

• Faster product time to market.

• Contraction or growth can be made based on the needs of enterprises.

Some enterprises may choose to establish and maintain their own data centers, while others may consider leasing third-party data centers. Leasing data centers is more cost-effective and secure for small and medium-sized enterprises, without the need to build a new data center.