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The Business Case for Retrofitting Data Centers

By Jimmy Sneed

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?

COST EFFICIENCY

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

FASTER IMPLEMENTATION

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

ENHANCED PERFORMANCE

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:

• Improved sustainability: Upgrading to more energy-efficient systems through retrofitting can significantly lower the greenhouse gas emissions associated with data center operations.
• Prolonged asset life: A retrofit extends the lifespan of a data center, postponing the need for a complete rebuild. The upgraded systems also enhance the facility’s capability to support emerging technologies like edge computing and AI workloads.
• Business continuity: Retrofitting a data center can often occur in phases, allowing operations to continue uninterrupted during renovations. Modernization also enhances the facility’s resilience, enabling it to better manage power surges, cooling challenges, and cybersecurity threats.
• Competitive advantage: Modernizing a data center increases its capacity to handle larger workloads, providing businesses with greater flexibility for expansion. Upgraded infrastructure also enables faster adoption of emerging technologies.
• Risk mitigation: A retrofitted data center benefits from enhanced security through advanced cybersecurity features. Additionally, upgrading replaces aging equipment vendors may no longer support, addressing challenges in sourcing parts and maintaining necessary preventative maintenance.

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.