To Build Or To Colocate Your Next Data Center – That Is The Question

Technology and business leaders don’t always fully understand the true costs and risks associated with both building and operating a data center. Data center facilities are one of the largest line items in an IT infrastructure budget, and these costs can run into the tens or even hundreds of millions over a data center’s lifetime. If you’re currently looking for more data center capacity, before you make a decision, it’s important to understand the cost and risk implications of your choice and justify the business case to your executives and budget holders.

Using Forrester’s Total Economic ImpactTM (TEI) methodology, we built an ROI calculator to help infrastructure & operations professionals evaluate three approaches to greenfield data center implementations: traditional builds, modular builds, and colocation. In this model, we quantify the costs, risks, and benefits associated with each scenario and calculate the net present value (NPV) of this investment over 15 years.

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