Business Case Report

Build Or Colocate? The ROI Of Data Center Facilities In India

A Total Economic Impact™ Analysis Shows That Colocation Is More Economical Than Building A Data Center For Most Indian Companies

September 3rd, 2013
Manish Bahl, null
Manish Bahl
Sophia I. Vargas, null
Sophia I. Vargas
Rachel A. Dines, null
Rachel A. Dines
With contributors:
Doug Washburn , Rupika Malhotra


Data centers in India are running low on space, power, and cooling capacity. When it comes time to provision new data center capacity, IT infrastructure and operations (I&O) professionals in India face a critical decision: build or lease. So what should you do? Forrester evaluated the leading approaches to expanding data center capacity, comparing traditional data center building with leasing from a colocation provider. We applied Forrester's Total Economic Impact™ (TEI) analysis to a generalized facility starting at 350 kilowatts (kW) with annual IT power consumption growth of 10% and found that, while traditionally built data centers give complete control over the operational environment, leasing is still the most economical and risk-averse solution for many organizations. This report, and the TEI model that accompanies it, extends Forrester's previous research on the economics of data center facilities to help I&O professionals in India and elsewhere decide when to lease and when to build a data center given their unique circumstances.

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