While much attention is focused on designing the data centers of the future, the potential of existing facilities is often overlooked. Retrofitting these data centers by upgrading and modernizing infrastructure, technology, and systems offers significant opportunities to enhance performance, efficiency, and sustainability.
Further, in a cost-sensitive environment, achieving the right balance between Capital Expenditures (CAPEX) and Operating Expenses (OPEX) is crucial for long-term success. This raises an important question: what are the key advantages of retrofitting?
Modernizing an existing facility can eliminate the need for significant land, construction, and new infrastructure, requiring a significant CAPEX investment. Upgrading systems, such as energy-efficient cooling and power management, can significantly reduce OPEX costs. Extending the lifespan of existing assets will ensure a better Return on Investment (ROI) than building a new facility.
| Expense | New Data Center | Retrofitting Existing Facility |
|---|---|---|
| Construction Costs | $8M-$12M per MW of IT Capacity* | $4M-$8M per MW of IT Capacity* |
* Does not include land cost
Modernizing an existing facility can bypass the substantial costs associated with land acquisition, construction, and new infrastructure, which typically demand significant CAPEX investment. By upgrading systems like energy-efficient cooling and power management, organizations can dramatically lower OPEX. Additionally, extending the lifespan of current assets ensures a stronger ROI when compared to constructing an entirely new facility.
| New Data Center | Retrofitting Existing Facility | |
|---|---|---|
| Time to Completion | 12 – 36 Months | 6 – 18 Months |
Retrofitting an existing facility allows owners to integrate more powerful IT equipment, increasing computing capacity without the need for additional physical space. Enhancing cooling and power management systems ensures optimal operating conditions for the equipment. Additionally, modern systems offer greater reliability, reducing the risk of hardware failures or data loss.
Other notable benefits of retrofitting a facility include:
Retrofitting an existing data center offers numerous benefits, including cost savings, improved performance, increased sustainability, and greater adaptability. It is a practical approach to ensuring the facility can meet both current and future business needs while maximizing the return on investment in existing infrastructure. Considering an upgrade? Let’s discuss how retrofitting can improve your data center’s performance while saving costs. Email me at jsneed@wbengineering.com to start a conversation.