Make Cost Savings Part of Your Data Center Build or Buy Decision

Significant cost savings can be realized when building or leasing in a high-density environment versus maintaining IT equipment in a low-density environment. Consider whether or not your current data center can support the trend toward high-density IT equipment, and build your data center strategy around taking advantage of new opportunities, such as colocation.

Read the Gartner report “Best Practices for Selecting a Colocation Provider.”

The Truth about Data Center Power and Cooling Costs and PUE

According to a recent IDC survey of enterprise data center managers, power and cooling costs make up about 24 percent of data center budgets. For data centers with an average annual budget of $1.2 million, about $300,000 goes to power and cooling.

But it gets worse. Power usage effectiveness (PUE)—the ratio of power coming into the data center to how it’s being distributed across the IT workload—falls precipitously. More than two-thirds logged a PUE of more than 2.0. Worse, some ten percent were over 3.0 or didn’t even know what their PUE score was.

By comparison, U.S. government guidelines recommend 1.5 or less; a PUE of 1.0 is considered very efficient.

How IO’s High-Density Data Center Modules Reduce Costs

Unlike traditional raised floor environments, IO’s data center modules seal off the environment, allowing power and cooling to take place within a highly pressurized space. Airflow is optimized throughout using variable speed air handlers. Cabinets within the module are deployed in a hot aisle/cold aisle configuration, and best practices are implemented in any open spaces to achieve the best PUEs.

In these high-density modules, space and power is efficiently utilized:

  • Less equipment to install, reducing the IT footprint.
  • Fewer cabinets, reducing the amount (and cost) of wiring and cabling.
  • More power for the space, significantly reducing energy costs.
The Real Test: Traditional Raised Floor vs High-Density Modular Data Center

IO’s industry-defining modular data center was stacked up against its traditional raised floor data center in 2013. Its traditional raised floor environment had a PUE of 1.73 over the year-long study—much better than the enterprise data centers in the IDC study. IO’s data center module fared even better with a PUE of 1.41.

This may not sound significant, but lowering PUEs by just .25 directly lowers operating costs by $1 million over five years. In IO’s case, it yielded significant reductions in energy waste, water usage, and carbon dioxide, resulting in a 19 percent cost savings. That translates to more than $220,000 per MW of IT power load. Read the full study here.

With one of the lowest data center PUE ratings in the industry, IO goes beyond colocation to deliver data center as a service (DCaaS) at scale. Not only does IO provide the ultimate flexibility to right size to your current needs—effectively removing the risk from a build decision—it can help deliver data center cost savings that make the build vs. buy decision a no-brainer.

Examples of Real-World Data Center Cost Savings with IO
  • Meritage Homes – Has seen a 30 percent reduction in its monthly data center costs with increased uptime.
  • CBS Interactive – Reduced previous colocation costs by about two-thirds.
  • Logicalis – Accommodated up to 18 cabinets in their data center module with 8.5 KW per cabinet.
  • Sirius Computer Solutions – Continually optimize power consumption and cooling, reaping huge benefits to their clients as they scale.
  • Catalyst Lending – Spend less for a full rack with a fast Internet connection and power than was previously spent for just the Internet connection.

Says Jay Steed, Assistant VP for IT Operations and Customer Support at Arizona State University: “It made great sense for us to colocate at IO rather than make the capital investment to renovate aging data centers that I couldn’t afford to maintain over the long run anyway.” Read the full Arizona State University case study.

Learn more about IO’s cost savings and data center efficiency. Better yet, schedule a tour and see for yourself how high-density modules can yield cost savings.


“Enterprises Still Failing to Cut Data Center Power, Cooling Costs,” eWEEK.com, 06/20/2015.

DISCLAIMER: This document is for reference purposes only. The information contained herein should not be relied on and neither IO Data Centers, LLC nor any of its affiliates makes any warranties or representations as to its accuracy.