Data Center Investment

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Many large technology-related companies are now focusing on data center investment in support to their ever-growing businesses and to maintain their data storage system stability. Due to the advent of micro-computer technology, there are more companies looking forward to invest for data centers to improve their services to the customers.

In view of that, here are the specifics about data center investment.

Why Many Big Companies are focused to Data Center Investment?

Data centers are now basically needed by a great number of technology-related companies to support on their large-scale operations and to establish a strong foundation for the steadiness of their data storage and telecommunication systems. Since the advent of computer-based technology in the early years, long before the introduction of micro-computer industry, there’re already several large modern companies have used data centers as the core for telecommunication and to store valuable information regarding their businesses. Even the military were also the first one to use the system for their highly-sensitive military operations and for the effectiveness of their intelligence network.

Computers are one of the main components in a data center. This is mainly because it can store a large volume of information and mainly used for better communication system which is extremely required in providing top-quality customer support services. However, building and maintaining a data center involves a huge investment wherein only those large companies can actually acquire for this.

With the ever-growing information technology (IT), this is a big factor that contributes on the existence of data centers as it uses high-end networking tools which is less expensive and faster than it was. In addition, data centers these days are now applying internet technology that made it even better than before, thus enhancing the day-to-day operation of a particular business. Despite of the fact that a large amount of funding is needed, the demand for data centers had increased in the past three years, in which social networking sites, telecommunication firms, and other large private firms have declared their interests on this latest industry.

Significance of Data Center Investment

According to datacenterpractice.com, there are several reasons why many large companies, for example Google and Facebook, have set-up their long-term goals for building-up their data centers:

  • Revenue growth – It is estimated that about 20% can be the increase in the annual earnings of the company with data centers, plus the return of investment is even faster.
  • Cheaper overheads and relocation costs – Because the large-scale operations become easier and faster, relocating the “servers” is also cheaper that lowers the operating expense, thus enhancing the annuities of the business.
  • Business Stability – Acquiring for additional funding is easier if the company shows good track record.

The actual investment for a data center depends on its level which currently has four Tiers, Tier 1 to Tier 4. For instance, approximately $10 million investment per megawatt and $1,000 per sq. ft. is desirable for a Tier 3 Data Center. Other factors for establishing a data center are design of the facility, fully-controlled environment, strong structural platforms, sufficient electric power, fire protection and other forms of security measures.

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