Report finds average enterprise data center costs $270.1 million to operate over a 10-year period, but the spread between the highest and lowest cost markets is vast
Enterprise data center users can potentially save up to $140.9 million with thorough due diligence in identifying markets that meet their business requirements and provide lower net tax burdens after incentives, relatively affordable power rates, favorable weather conditions, and greenfield space to build in a less expensive manner, according to a new report from CBRE Group, Inc. These potential savings represent up to 52.1% of the $270.1 million average project cost for a typical 5-megawatt (MW) enterprise project in the U.S. over a 10-year period.
“The ever-increasing need for data exchange, storage and security is broadening demand for data centers in the U.S., but one solution does not fit all,” said Pat Lynch, managing director, Data Center Solutions, CBRE. “Capital and operating costs vary considerably by market, and non-monetary factors such as proximity to a headquarters location, fiber density and environmental and other risk factors can also drive enterprise site selection decisions.”