Are you thinking about building your own data center for your business? Before you do, it’s important to consider the cost to build a data center and storage units and compare them to the cost of using an MSP. The comparisons must be done on a case by case basis as all companies needs are different.

Let’s take a look at the costs you may incur when building a data center of your own.

Cost to Build a Data Center

There are upfront costs when building a data center, but there are also long-term operational costs. Long-term costs are often recurring and need to be in the cost analysis. Costs aren’t the only thing to consider when choosing between building a data center or hiring an MSP.

Location, staffing hours, and the amount of time it will take someone to make it on-site are important factors. If equipment fails or the system malfunctions, will someone get there in time to minimize the cost of downtime? Here are a few of the largest data center costs.


Providing networking to your data center is one of the largest costs. These costs are not only upfront for set-up and installation but recur on a monthly basis. For businesses that build their own data centers, network providers tend to jack up the price because it isn’t a shared space. If you’re using an MSP that already has a data center, they can house multiple companies’ storage in one location, saving money.

Energy Efficiency (Or Lack Thereof)

Did you know that most data centers built by businesses use around 50% of energy on their IT equipment, and 30% on cooling? This means that when your business has it’s own, it’s going to be highly energy inefficient. Colocation data centers house more than one companies data, using larger power sources and improving energy efficiency.

Staffing Cost

Another significant cost for having and operating your own data center is personnel. You’ll have to have technicians on staff that can run and monitor equipment. Depending on the level of data you’re housing, you may also have to have security guards to watch your data.

You’ll need to clean out the data center on a yearly basis as well, so you’ll have to hire someone for that as well.

When Building Your Own Is Right

There are some circumstances that building your own data center may be the best fit for your business. If you have highly sensitive data that due to compliance cannot be run by someone else, you already own or operate a data center, you have low risk and a budget, and you have technical staff who could relocate.

For a lot of businesses, however, having an MSP step-in and take over the burden of running a data center and taking care of the data is a relief. If you’re interested in having your data in safe hands and avoiding the cost to build, reach out to us today!