Business Case Report

Build Or Colocate? The ROI Of Your Next Data Center

August 20th, 2013
Sophia I. Vargas, null
Sophia I. Vargas
Rachel A. Dines, null
Rachel A. Dines
With contributors:
Doug Washburn , Eric Chi


Data centers 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 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, modular building, and leasing from a colocation provider. We applied Forrester's Total Economic Impact™ (TEI) analysis to a generalized facility starting at 500 kilowatts (kW) with an annual IT power consumption growth rate of 10% and found that, while modularly built data centers are more economical than their traditional counterparts, leasing is still the lowest-risk solution for many organizations. This report, and the TEI model that accompanies it, will help I&O professionals decide when to lease and when to build a data center given their unique circumstances.

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Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.