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4 Ways to Reduce Data Center Construction Costs

4 Minute read

For a suitable data center structure, a baseline expectation in terms of cost could be around $200 per square foot. For even the smallest standard data centers, roughly around 5,000 square feet in size, this means your new construction project will be difficult to keep below one million dollars. However, land cost, market conditions, requirements, and more can all impact the cost of your data center construction, perhaps to your advantage or not.

In this article, our data center construction experts at FGC Construction will break down four ways you can reduce data center construction costs to help keep your project scope within your budget without having to sacrifice the quality of your facility.

Work with an Experienced Estimator

Proper estimating is one of the most important practices in any construction project and should be completed before beginning any size project. This way, you will know that your project is within your budget from the very beginning.

While there are many helpful online calculators that exist, they are incapable of representing the full picture that an experienced estimator would be able to provide. True, dedicated estimators will not just crunch the same numbers for every client. Rather they will use their experience to find solutions with the best possible value for minimal costs.

Make sure your professional data center construction providers have extensive experience on all types and sizes of projects in the recent data center industry. This experience will ensure they have a wealth of knowledge to deliver an estimate to you in a short period of time. It will also give you confidence that even indirect impacts on your construction costs, such as permits, and financing plans are all properly accounted for.

Other factors to consider include fluctuating prices of raw materials like steel, oil, cement, and wood. These shifting aspects can cause direct impacts to your construction costs that many may not be fully aware of or able to helpfully manage.

Consider Which type of Data Center You Need

Depending on your specific needs, a wide variety of data center types exist, each providing unique benefits. Whether you are planning on building a simple, relatively small data center, or something much bigger, it is important to know exactly what your needs are to ensure you do not overspend. Here are a few of the options available to you:

Hyperscale Data Centers are facilities owned and operated by the company it supports. They offer robust, scalable applications and storage portfolio services to individuals or businesses.

They are necessary for cloud and big data storage, having anywhere from 500 cabinets with a minimum of 5,000 servers linked. Another major factor of importance is the high fiber count across the network, differentiating them from other, smaller data centers.

Enterprise Data Centers are also owned and operated by the company it supports but are typically smaller or less powerful than the hyperscale data centers of companies like Microsoft, Google, and Apple.

Telecom Data Centers require a very high level of connectivity and are mainly responsible for driving content delivery, mobile, or cloud services.

Colocation Data Centers are another fantastic option that we will discuss at the very end of this article

Renegotiate Your Contracts

When you are “in between” data centers, it is a great time to reevaluate your contracts. Look over your hardware, software, leasing, maintenance, and support contracts in-depth. See which ones you no longer require, and attempt to secure lower payment schedules for others. Vendors are typically used to reviewing contracts during rough economic times, and looking into your contracts can be a great way to lower some of the costs associated with owning and operating your data center once it has been constructed or renovated. 

Consider Colocation

An easy way to understand colocation facilities could be to think of them as the apartment complexes of data centers. They typically consist of one data center owner selling space, power, and cooling to various customers. This enables businesses to scale and grow their businesses even when they aren’t quite ready to invest the resources necessary into a data center of their own. The minimum complexity, low costs, and the technical guidance offered at some facilities makes this a very attractive option for many companies in need of data center space.

FGC Can Help Guide You Through Your Data Center Construction

Our professional team has extensive experience in data center construction for facilities of all sizes and numerous critical infrastructure projects. Located throughout the United States, we can help you find answers to difficult questions during the important planning stages of the project to ensure you are successful.

If you are ready to take the next step, and would like a professional’s assistance, we are here for you. Contact our team today.

  • FGC Construction installed an entire megawatt of UPS and generator upgrade to our 3d Printing facility. This holds our power stable and provides unlimited runtime. Much appreciated!

    Lee M.COO - Boston, MA
  • FGC Construction delivered 2.5MW of high density data center in the middle of Silicon Valley. City planning to utility negotiations. Very impressed!

    Tim S.CFO - Silicon Valley, CA

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