Costs of a Data Center


The more robust the DC, the more energy availability and the greater number of telecommunications operators should be considered.

Building a Data Center is expensive. The value of the electromechanical system and the energy consumption grow each time a new system or client is added. Data Centers can be classified into 4 tiers according to the Uptime Institute:


Tier I

Composed of a single path for power and cooling distribution, with no redundant components, it provides 99.671% availability. 

Tier II

Created with a single path for power and cooling distribution, with redundant components that provide 99.741% availability.

Tier III

Consisting of multiple active power and cooling distribution paths but only one active path has redundant components and can be maintained simultaneously providing 99.982% availability. 

Tier IV

Made up of multiple active power and cooling distribution paths, it has redundant components and is fault tolerant, providing an availability of 99.995%.


The more robust the DC, the more energy availability and the greater number of telecommunications operators should be considered. In addition, the installation of redundant systems in terms of uninterrupted power (UPS), direct current battery plants, diesel-based power generators and HVAC systems–include heating (H), ventilation (V) and precision air conditioning (AC). 

These capital expenditure costs (CapEx) can add up quickly. Finally, the hiring of trained personnel for the management of a Data Center increases the expense, added to the operating costs and maintenance costs (OpEx).


Cost of building a Data Center

To begin with, it will be necessary to construct a building for the Data Center that is efficient. The cost will vary depending on location and labor; it is also dependent on the geography where it will be built.

As for servers and storage units, it will be necessary to place equipment that meets the standards according to the service that one intends to offer in the Data Center. The client and building monitoring system should also be considered.

As for energy power, it will depend on the location but we are talking about consumption on the scale of megawatts. Backup power installations should also be added (for example: industrial power battery backup and diesel generator).

On network connectivity, you must have multiple internet providers and dedicated fiber optic connections. A mile of fiber optic connection can cost up to $250,000 USD.

A Data Center needs technological infrastructure to eliminate heat, fire protection, and physical security equipment; depending on the tier, closed circuit equipment and access sensors with biometric authentication mechanisms can also be installed.


Cost of implementing a Data Center

Data Centers are often sized according to the facilities' amount of protected electrical capacity measured in kilowatts (kW). Below are the Uptime Institute's cost estimates:

  • Tier I: $11,500/kW
  • Tier II: $12,500/kW
  • Tier III: $23,000/kW
  • Tier IV: $25,000/kW

A cost for computer rooms of $300 USD per square foot must be added to the "kW cost" shown above.


Cost of a mini Data Center

To find a specific figure, we carry out the following exercise:

A small Tier II Data Center, with 32 racks and an average consumption of 10.0 kW per rack. With facilities covering 1,000 square feet (930 square meters).

  • The power consumption is calculated as follows: 32 racks @ 10.0kW/rack = 320kW
  • The cost of such consumption in a tier II Data Center: 320kW x $125,000 = $4,000,000
  • Computer room cost: 1,000 square feet X $300 = $300,000
  • Total: $4.3 million dollars

An important note: just raising the level of the Data Center to Tier III would double the cost.

To reduce costs you can opt for the construction of a Modular Data Center, which is a portable method to deploy capabilities of a Data Processing Center. These can be implemented quickly and maintenance costs are reduced, thus making construction, management and production easier and cheaper.

Unlike a traditional Data Center, the modular infrastructure offers standardized implementation options that provide flexibility and ability to meet the demands of digital businesses that need processing proximity.

Remember that having a technology partner with the necessary experience and knowledge will help you achieve your business goals. We invite you to visit:


  • Uchechukwu Christian Arinze. Semantic Scholar (2015). Enfoque de costos del centro de datos basado en modelos [Model-based data center cost approach]:, accessed August 2019.
  • Koomey. Uptime Institute (2008). Simple Model of Determining true total cost of Ownership for Data Centers:, accessed August 2019.
  • Rasmussen, Neil. Schneider Electric (2011). Determining Total Cost of Ownership for Data Center and Network Room Infrastructure:, accessed August 2019.
  • Uptime Institute:, accessed August 2019.