Looking at Data Centers from a Fresh Perspective

Business Ideas & Inspiration Internet & IT 20.11.2015  0 92 0
Looking at Data Centers from a Fresh Perspective

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The concept of establishing data centers is not new. Several decades ago, an explosion in the IT industry created a gap between the demand for internet services by users and the actual capabilities of the World Wide Web. It was during this time that many IT companies earned their initial profits by providing hosting services (hosting websites and internet projects on physical servers).

Who Can Participate in the Data Center Creation Project?

This type of business will require significant investments from you. Everything depends on your capabilities and requirements. For example, in April 2015, Google launched a 15,000 m² data center, with a total investment of $600,000,000. It's worth noting that projects of this scale require only 175 staff members for operation.

In the domestic setting, there are three primary pathways for project development:

1. Capacity Expansion

Many investors are attracted to high-yield and quickly profitable projects. Establishing a data center often pays off within a year or a year and a half, enabling stable high revenue with low maintenance costs.

3. Data Exchange Center (DEC) Relocation or Enhancement

After securing funding for the project, the second most critical issue is finding a suitable location for the DEC. It must meet specific requirements:

  • Ability to connect to electricity with a capacity ranging from 300 kW (for small DEC) up to 600 kW for a DEC with 60 server racks.
  • The building or space owner should be willing to enter into a lease agreement for at least 5 years. Why is this necessary? Firstly, acquiring a building for servers is very costly, significantly extending the payback period by 2-3 times. Secondly, you'd need to remodel the space and conduct repairs. If asked to vacate the premises in 3 years, all profits would be spent on finding new space and relocating equipment.
  • The premises should not contain transit pipes that could burst at any moment and damage equipment worth hundreds of thousands of dollars.

Previously used assembly workshops, sections of plants, or factories suited for this purpose. They are situated away from cities, typically well-secured, and allow for easy scalability.

Without a meticulously detailed plan for constructing the DEC, your efforts will be in vain. Everything must be calculated, from the required amount to purchase servers to equipment for staff facilities. Typically, such projects involve 500 to 1000 pages of text, diagrams, calculations, and recommendations.

Expert Support

This excellent quote reflects the required approach to implementing a complex project. Investing money wisely, sourcing directly from computer system manufacturers and dealers, allows for budget allocation and ensures high reliability of the future system.

Remember, you will be selling reliability, security, and continuity to your future clients. If your data center crashes regularly once a week, you will quickly lose customers or be forced to reduce service costs.

Maintenance

file-sharing services.

How Much Can You Earn?

On average, renting a single server rack costs between $100-1000 (depending on the configuration). It is more profitable for DEC owners to sell one-third or half of a rack's capacity at more advantageous rates, yet still affordable for consumers. With around 60 racks, you can potentially earn over $50,000 per month, assuming full capacity.

However, there are significant expense categories:

  • Internet channel costs;
  • Electricity costs – for a 600 kW line, the monthly sum can be substantial;
  • Staff salaries;
  • Taxes;
  • Logistics;
  • Technical maintenance and upgrades.

On average, projects involving 60 server racks pay off within 1-2 years, depending on server utilization rates and launch conditions.

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20.11.2015  0 92 0
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