Practical IT Research that Drives Measurable Results Build a Data Center 1Info-Tech Research Group

Executive Summary Info-Tech Research Group2 42% of IT leaders will face a data center build or upgrade in one of the most expensive and complex IT projects, it can cost up to $1.6 M for a 1000 square foot data center. Each data center project is unique and should have its own detailed budget. Planning up front and establishing a clear project scope will minimize expensive changes in later project stages. Industry benchmarks are not always accurate – the absence of a budget risks cost overruns by 22%. Hidden costs for landscaping, permits, and security can increase capital investments. Ongoing operating expenses must also be budgeted, as they represent 65% of the total costs associated with building a data center. Accurate estimates of facility requirements are a critical input to the project’s budget. – Power and cooling supply requires careful estimation to accommodate future growth yet avoid unwarranted costs. – Fire protection is mandated by law and comes with real consequences as it can impact life safety. – Site selection should identify any potential issues that may lead to additional construction costs, especially in an existing building. Hire a specialized general contractor and avoid those who build office spaces only. Data centers have more stringent, unique code requirements. Use specialized talent to avoid costly retrofit later.

Info-Tech Research Group3 Almost Half of IT Leaders will face a Data Center Build or Upgrade in 2010 Data Center facilities require industrial design and engineering  Data centers are getting bigger and more complex.  Despite the availability of consolidation technologies, organizations Info-Tech surveyed were two times more likely to increase the size of their data center than decrease it.  Internal expertise is most often lacking to undertake the build.  Data center facilities require specific industrial design and engineering requirements to meet the needs for fire- protection, power provisioning, stand-by power, cooling, physical security, and layout. Many IT organizations face a data center build but fail to recognize the design and engineering complexities. Source: Info-Tech N=194

Info-Tech Research Group4 Careful analysis of five key design elements done internally now will yield better cost and build outcomes later. Analyze These 5 Now Stand by Power Power Fire-Protection Site Selection Cooling  Analyze these five factors before engaging outside consultants and contractors to correctly align the facility costs and capacity with enterprise needs.  Data Center construction projects executed without these five design activities, before awarding contracts, demonstrate a higher likelihood of cost overruns, overcapacity, and problems. To Yield Better Cost & Outcomes Later

Complete this project charter before the project commences to identify a clear and defined scope, decision rights, potential risks, and receive executive sponsorship. Establish clear project scope to minimize expensive changes in later project stages. The ITA Premium “Data Center Build Project Charter Template” will help you:Data Center Build Project Charter Template  Understand just how big a project you are building.  Provide input into a build vs. buy decision.  Provide a project approval for business leaders to sign off on.  Reduce external costs of the project overall. Up front planning reduces change orders and corrections. This also means contractors are not charging by the hour for information IT should be able to pull together internally for requirements. Info-Tech Insight: 5Info-Tech Research Group

0% 20% 40% 60% 80% 100% Initial InvestmentFuture CostTotal Cost 65% of costs occur after the data center is built- get a handle on all costs before the build. Info-Tech Research Group6 On average, a 1000 square foot data center costs $1.6 M. Each project is unique and should have its own detailed budget; create a detailed list of expected expenses for an accurate budget. Consider ongoing costs in your initial budget calculations, as they make up the bulk of the total costs associated with building a data center. Some major ongoing operating expenses include: Building leases Fire suppression systems Mechanical systems for electrical distribution, and in-room cooling Future Costs are the Largest Portion of a DC Build 100% 35% Data center facilities are costly because they require detail beyond normal commercial construction requirements. For example, building code requirements alone can represent a 20% cost increase for a 110V outlet in a data center versus a standard 110V outlet installed in a commercial office. 65%

Info-Tech research shows that data centers cost between $400 and $700 per square foot. Lower than industry conventions. Using conventional industry standards can lead to over-estimating the build budget; Info-Tech's research shows actual costs are 22% less. Organizations that rely on the industry standard of $600 to $900 per square foot when creating their budgets run the risk of over budgeting and over spending. As a result, general benchmarks should not be used for a data center build. Organizations should complete their own detailed investment and expenses to accurately budget for their builds. Info-Tech Research Group7 Actual Data Center Costs are Less Than Industry Benchmarks $600 $ % $700 $900 Source: ITRG & Industry Sources

The ITA Premium, “Data Center Facility Budget Tool” enables the organization to account for all costs in order to arrive at an accurate estimate.Data Center Facility Budget Tool Accounts for hidden costs, such as janitorial expenses, landscaping, permits, and physical security. Provides a complete example for a 1000 sq ft facility that you can tailor to suit your situation. Factors all necessary renovations, repairs, and upgrades related to purchasing an existing data center into the final cost. Even if you are planning on renovating an existing data center, you can still use the tool to determine ongoing operational costs. Info-Tech Research Group8 For a more accurate and inclusive cost estimate use Info-Tech’s budgeting tool.

Do not focus solely on the IT equipment housed in the data center. Power estimates should accommodate facility and equipment requirements. Typical Data Center Energy Consumption n=153 Source: Info-tech Research Group Info-Tech Research Group9 IT infrastructure accounts for only 36% of the power consumed by the data center. The facility itself will be the biggest consumer of power over the life of the facility. Getting the facility requirements right upfront will lead to lower facility costs in the years ahead. Info-Tech Insight: Power Conversion, (11%) Lighting, (3%) Cooling, (50%) Servers & Storage, (26%) Network Hardware, (10%) Equipment 36% Facility 64%

Leverage the “Data Center Power and Cooling Requirements Calculator’ to ensure budget accuracy. Use the ITA Premium, “Data Center Power and Cooling Requirements Calculator”, to estimate the facility requirements for power, standby power, and cooling for your facility.Data Center Power and Cooling Requirements Calculator Accurate estimates of facility requirements are a critical input to the project’s budget. Use this tool to estimate existing & future: IT equipment power load requirements. Cooling load requirements. Standby power load requirements. For more detailed guidance on requirements gathering, refer to the ITA Premium research note, “Data Center Facility Requirements Estimations At-a- Glance.”Data Center Facility Requirements Estimations At-a- Glance By investing time finding the right information and performing the calculations involved in estimating facility requirements, IT will ensure that the data center has the right amount of power at the right cost to support both current and future needs. Info-Tech Insight: Info-Tech Research Group10

Fire protection and suppression is a critical but often misunderstood part of data center design. Fire protection solutions beyond those mandated by law, must be well thought out, as changes in later building stages or during refresh of the data center can be costly. The ITA Premium, “Fire Protection and Suppression Selection Tool” will help you through the process of selecting fire protection and suppression systems for the data center.Fire Protection and Suppression Selection Tool Use the guide in the planning phase to help estimate budget. It can also be referenced when a fire engineer has been selected to validate decisions. Info-Tech Research Group11

Fire protection is not solely about IT assets but additional protection must be evaluated to avoid unnecessary costs. The number one consideration when evaluating fire protection options is life safety in the data center. It is mandated by law and non-negotiable. While clean agents can be very effective in suppressing fire and protecting property, they are also expensive to install and maintain and, may be toxic. Refer to the ITA Premium research note, “Fire Protection: Only YOU Can Prevent Data Center Fires” for more detailed guidance.Fire Protection: Only YOU Can Prevent Data Center Fires Under NFPA 75 a data center must have a sprinkler system, detection and alarm systems, emergency power-off, and portable fire extinguishers. Info-Tech Research Group12 Additional protection to property such as pre-action sprinklers, piping, and clean agent systems must be evaluated rather than installed by default. Info-Tech Insight: Non-Mandatory Solutions: Risk and Cost of Downtime $35.77/sq.ft. $8.12/sq.ft. +341% Mandatory Fire Protection Additional Fire Protection

Existing building sites often lead to additional construction costs. Site evaluation should identify any potential issues. The selected site must be evaluated before the data center budget can be finalized. Use the ITA Premium, “Data Center Site Selection Checklist” to target issues that will lead to cost overruns of safety/security concerns.Data Center Site Selection Checklist External environment, including physical hazards. Internal checkpoints (power, cooling, etc.) in existing facilities. Physical building attributes such as loading docks and water lines. Security checkpoints for the protection of systems and staff. Access control systems to prevent intruders. Facility layout must be planned before construction starts. Data centers house more than just servers. Provide space for all equipment and to serve all functions. Refer to the ITA Premium research note, “Planning for Data Center Physical Layout and Support Center Space” for more detailed guidance.Planning for Data Center Physical Layout and Support Center Space 13Info-Tech Research Group

A common scorecard makes the contractor selection process transparent. Each contractor should be evaluated based on a standard scoring method to ensure accuracy and fairness. Use the ITA Premium, “Data Center Contractor Scripted Interview Scorecard” to show senior management why a particular contractor is the best fit and ensure you account for the following important aspects:Data Center Contractor Scripted Interview Scorecard Data center build experience of similar size and scale Project management practices Site selection processes End user requirements processes System execution and management practices Support during and after the build The use of a common score card for contractor selection is frequently a requirement for government procurement or contract award processes. 14Info-Tech Research Group

Additional Tools and Insight Included in Complete Report Call trees are essential for ensuring that a team with the right abilities can be assembled quickly Calculating Critical Loads: A Question of Input Accuracy Estimate future loads or risk capacity issues when adding new devices in the future. Standby Power Estimates Keep the Data and the Systems Safe. Accurate cooling estimates must include more factors than just IT equipment. Construction of the data center requires specialized skills the enterprise likely will not have in house. Project complexity demands contractors that match enterprise skill, approach, and cost requirements. Reference checks unveil both the good and bad of contractor’s past projects. Info-Tech Research Group15

Info-Tech Research Group16 Info-Tech Helps Professionals To: 1.Quickly get up to speed with new technologies 2.Make the right technology purchasing decision – fast 3.Deliver critical IT projects, on time and within budget 4.Manage business expectations 5.Justify IT spending and prove the value of IT 6.Train IT staff and effectively manage an IT department “Info-Tech helps me to be proactive instead of reactive – a cardinal rule in a stable and leading edge IT environment.” - ARCS Commercial Mortgage Co., LP “Info-Tech helps me to be proactive instead of reactive – a cardinal rule in a stable and leading edge IT environment.” - ARCS Commercial Mortgage Co., LP Sign up for a free trial to get practical solutions to your IT challenges. Sign up for a free trial