Business Trends

Ten Benefits of Outsourcing a Data Center, by Colliers International

File Type: Free Content, Article
Release Date: September 2013
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data center

“Data center outsourcing is a growing trend, with many large enterprises embracing the financial and operational benefits associated with wholesale co-location solutions. The resulting demand has created U.S. data center hubs in Silicon Valley, New York/New Jersey, Northern Virginia, Chicago, Dallas, Los Angeles, Atlanta and Phoenix,” wrote Tim Huffman, executive vice president and global director of Colliers International’s technology solutions group, in Baseline magazine on August 21, 2013.

Key benefits of outsourcing include the following:

1. Uptime. Building design and systems are usually state of the art in outsourced data centers because operators are required to offer service level agreements that result in financial penalties when missed.

2. Risk Mitigation. An outsourced data center located away from corporate headquarters eliminates the possibility of a blackout or some other event taking out both facilities at once.

3. Tax Incentives. Key data center markets offer tax incentives to companies that rent data center space.

4. Speed of Delivery. Upgrading or building a new data center can take a corporation as long as two years. Data center operators provide existing inventory, space and power that allow for growth and can substantially cut down on the time it takes to get a new center up and running.

5. Discounted Power Costs. Large-scale data centers typically use 100 to 200 watts of power per square foot of space. Working with a data center operator who can negotiate favorable rates with local utilities can save a great deal of money.

For the five additional benefits, see “Ten Benefits of Outsourcing a Data Center.”