Copyright 2018 Amro Almashharawi. All Rights Reserved.

Amro's DC Financial Calculator

Data Center On-Prem vs. Colocation Financial Analysis Forec

Purpose
The intent of this tool is to provide comprehensive financial analysis of data center options for mediu
deliver a fairly accurate financial modelling to stakeholders and decision makers in an aim to define a
strategy for their business.

Copyright
Created and developed by Amro Almashharawi . All rights reserved. 2018 Amro Almashharawi

By using this tool , you understand and agree that this tool and any data or analysis produced are sole
Please contact the Author for customization or should you need to use this tool commercially.

About the Author

An engineering and technology enthusiast , Amro is a Data Center Architect and Senior Consultant at
IBM.
Amro has a track record in managing the design and building of several enterprise data centers in
various verticals (Financial ,Healthcare, Oil and Gas ,and Military). He delivers Data center & Cloud
strategy and technical consultancy to CIO's and Technical Managers in large enterprises and
government organizations.

Date and Version

Version 1.0 (Original) : August 11,2018

Notices
This tool is provided for information purposes only. All content and findings expressed here are solely
capacity and do not necessarily represent the views of IBM or any of its companies. While efforts wer
accuracy of the information contained in this documentation, the Author take no liability as a result o
tool is provided as is without warranty of any kind, whether express, implied, or statutory.
ancial Calculator

tion Financial Analysis Forecasting

data center options for medium to large enterprises. It allows users to

n makers in an aim to define a successful long term data center

2018 Amro Almashharawi

a or analysis produced are solely for Non-commercial purposes only.

this tool commercially.

Contact Details
hitect and Senior Consultant at
Amro.Almashharawi@gmail.com
al enterprise data centers in
delivers Data center & Cloud
large enterprises and

dings expressed here are solely those of the author in his individual
s companies. While efforts were made to verify the completeness and
or take no liability as a result of using the information in this tool. The
implied, or statutory.
Copyright 2018 Amro Almashharawi. All Rights Reserved.
Amro's DC Financial Calculator - Data Center and Colo Param

Method 1: $ per kW + $ per square

Method of Construction Cost estimation foot
Annual Discount Rate 5.00%

Table A1 - Data Center Primary Criteria

Parameter Value Unit
Number of Computer Rooms (white space) Modules 2 nos.
Module size in (sq.ft) 4000.00 sq.f
Estimated number of racks per module 134 rack
Estimated Grand Total number of racks in the DC 268 rack
Average allocated power per rack 5 kW
Tier Level Tier III
Total Build Up Area (BUA) 17600 sq.f
Dollars per sq.ft of built-up area (for Method 2) $2,000.00

Cost Adjusting Factor for Method1 -10%

Enter Construction Cost (Method 3 Only) $30,000,000.00 $

Table B1 - Colocation Service Criteria

Parameter Value Unit
Total Number of Racks 268 rack
Initial cost of infrastructure installation per rack $2,500.00 $
Nominal monthly charges per redundant kW power $300.00 $
Nominal monthly rack charge (if applicable) $250.00 $
Nominal monthly charges for cross-connect $300.00 $
How many cross-connect 4
Office/hot desks rent (annually) if applicable $15,000.00 $
Smart or remote hands and other misc. services $6,000.00 $
(monthly total charge)
 How to Use this too
Data Center and Colo Parameters
1
2
3
Note : Start by selecting the preferred method of estimation. Then fill the 4
highlighted parameters in (Table A1)
5

Table A2 - Fine Tuning Criteria

Remarks Parameter Value
Area allocated per rack (sq.f) 30
computer room or white space module area Built-Up Area to white-space ratio 2.2
Calculated based on area per rack in Table2A Rack Height (RU) 45
Calculated value Target PUE 1.8
Electricity Tariff (rate) per kWH in ($) 0.1

Diesel Gen. - Annual Run Hours 48

Calculated based on Table A2 Input Energy Consumption Escalator (Y on Y) 2.00%
Will only be applied if Method 2 is selected DC Occupancy (fill) ratio 70%
Loading ratio to kW nameplates 65%
Will only be applied if Method 1 is selected
Calculation Method Selected
Will only be applied if Method 3 is selected Direct Construction Cost

Table B2- Fine Tuning Criteria for Colocation Option

Remarks Parameter Value
Negotiated Overall Discount Rate 0%
One-off CAPEX payment per rack Actual Consumption to Nominal 100%
typically $100/kW to $350/kW monthly
typically <$100 per rack per month
typically $300 per CC per month
for redundancy enter even number of links
depends on number of desks or size of space
typically $100-$200 per hour for
remote/smart hand respectively
 How to Use this tool ?
Start by selecting the Method of Estimation
In Table A1 - Fill in the highlighted cells only
Use Table A2 to fine tune the results
Fill in Table B1 for Colocation and fine-tune in Table B2
Master Report, Charts, and Cash Flows are updated automatically

Premium Features
Notes
30-40 sq.f per rack is typical
values of 2.2 to 3 are typical

Typical range is 1.5 - 2 for enterprise DC

$ per kwH

Average Run hours per year

2%-5% is recommended.
for energy consumption calcs
for energy consumption calcs

Method 1: $ per kW + $ per square

foot
$29,898,000.00

location Option Premium Features

Notes

Enter 100% if this is not applicable

Copyright 2018 Amro Almashharawi. All Rights Reserved.
Data Center Options

Financial Analysis and Forecast Report

Net Present Value (NPV) Analysis - (expenditure) Total Construction Cost

NPV (million $) Total Construction Cost (in million $) $32.29 100%
NPV On-Prem (DC Build) $63.64 Arch. & Eng. Consultancy $2.58 8%
NPV Colocation $60.14 Permits & Statutory approvals $0.32 1%
Civil & Fit-Out Works $7.43 23%
Total Cost Of Ownership (TCO) Analysis Power & Electrical $11.30 35%
TCO (million $) Cooling & Mechanical $7.10 22%
TCO On-Prem $78.75 Fire Detection and Suppression $0.97 3%
Racks, Structured Cabling, DCIM &
TCO Colocation $86.61 Security $2.58 8%

TCO Analysis - DC Build Monthly Costs model (Amortized over lifecycle)

DC Build CoLo
Total CAPEX $32,289,840 Periodical Monthly Constant Payments $245,756 $232,249
Land/Building Accusation Cost $0 Monthly Dollars per Rack $917.00 $866.60
Architecture & Engineering consultancy fees $2,391,840 Monthly Dollars per RU $20.38 $19.26
Direct Construction Cost (Build) $29,898,000 Monthly Dollars per kW $183.40 $173.32
Other Costs Item (optional) $0
Copyright 2018 Amro Almashharawi. All Rights Reserved.
Total OPEX $46,460,090
Maintenance $11,211,750
Replacements $2,242,350
Energy & Utilities $13,181,351
Operation Team and Other Staffing $19,824,639

TCO Analysis - Colocation

Total CAPEX (Initial cost of infrastructure installation ) $670,000

Total OPEX $85,941,000

Annual reoccurring charges of total allocated kW power
$72,360,000
Annual nominal racks charge (if applicable) $12,060,000
Annual Cross Connect Fees $216,000
Annual Office/hot desks rent $225,000
Smart or remote hands and other misc. services $1,080,000
Copyright 2018 Amro Almashharawi. All Rights Reserved.

N et P re s e nt Val ue A nal ys i s To tal C ost O f O w ne rs hi p

$60.14 $86.61

NPV (mi lli on $) TCO (mi ll ion $)

$63.64 $78.75

$58.00 $59.00 $60.00 $61.00 $62.00 $63.00 $64.00 $74.00 $76.00 $78.00 $80.00 $82.00 $84.00 $86.00 $88.00
NPV On-Prem (DC Build) NPV Col ocation TCO On-Prem TCO Col ocation

On-Prem Construction Cost On-Prem OPEX

Components Components
Cooling & Operation Tea m
Mechanical; a nd Other Staffing ;
22.00% 52.24%
Fi re Detection a nd
Suppres s i on; 3.00%
Power & Electrical;
35.00% Ra cks , Structured
Ca bl i ng, DCIM &
Securi ty ; 8.00%
Arch. & Eng. Energy & Utilities ; Ma i ntena nce ;
Cons ulta ncy ; 34.33% 11.94%
8.00% Repl a cements ;
Permits & Statutory 1.49%
a pprova ls ; 1.00%
Civil & Fit-Out
Works; 23.00%

TCO for On-Prem DC On-Prem DC Annual Energy Consumption in Megawhatt.hours

10000
9000
8000
7000
6000
Tota l CAPEX ;
41.00% 5000
4000
Tota l OPEX; 3000
59.00% 2000
1000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
IT Load (average) Total Facility Load
 A B C D E F G H I J K L M N O P Q R
1 Copyright 2018 Amro Almashharawi. All Rights Reserved.
2
3
On-Prem DC : NPV and Cash flow Analysis
4
5
6 Year
7 Cost Component (in $) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

8 Land/Building Accusation Cost $0.00

Architecture & Engineering consultancy fees $2,391,840.00

9 (planning, design, & Commissioning)
CAPEX
10 Construction Cost $29,898,000.00

11 Other Costs Item (optional) $0.00

Facility and infrastructure maintenance

12 (Baseline) $448,470.00 $448,470.00 $448,470.00 $597,960.00 $597,960.00 $597,960.00 $747,450.00 $747,450.00 $747,450.00 $896,940.00 $896,940.00 $896,940.00 $1,046,430.00 $1,046,430.00 $1,046,430.00

Facility and critical infrastructure

13 (replacements, major components) $0.00 $0.00 $0.00 $0.00 $747,450.00 $0.00 $298,980.00 $0.00 $0.00 $896,940.00 $0.00 $0.00 $298,980.00 $0.00 $0.00
OPEX
14 Energy & Utilities $796,483.80 $807,245.86 $818,223.16 $829,420.01 $840,840.79 $852,489.99 $864,372.17 $876,491.99 $888,854.22 $901,463.68 $914,325.34 $927,444.23 $940,825.50 $954,474.39 $968,396.26

15 Operation Team and Other Staffing $1,195,920.00 $1,195,920.00 $1,195,920.00 $1,255,716.00 $1,255,716.00 $1,255,716.00 $1,318,501.80 $1,318,501.80 $1,318,501.80 $1,384,426.89 $1,384,426.89 $1,384,426.89 $1,453,648.23 $1,453,648.23 $1,453,648.23

16

17 Year
18 Dollar Value (in million $) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
19 Total CAPEX (Year 0 , undiscounted) $ 32.29
20 Annual OPEX Expenditure $ 2.44 $ 2.45 $ 2.46 $ 2.68 $ 3.44 $ 2.71 $ 3.23 $ 2.94 $ 2.95 $ 4.08 $ 3.20 $ 3.21 $ 3.74 $ 3.45 $ 3.47
21
22 On-Prem Net Present Value (NPV) in million $ $63.64 Copyright 2018 Amro Almashharawi. All Rights Reserved.
23
24
25
Copyright 2018 Amro Almashharawi. All Rights Reserved.
Colocation DC : NPV and Cash flow Analysis

Year
Cost Component (in $) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Cape Initial cost of infrastructure $670,000.00
x installation
Annual reoccurring charges of $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00 $4,824,000.00
total allocated kW power
Annual nominal racks charge (if $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00 $804,000.00
applicable)
OPE
X Annual Cross Connect Fees $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00 $14,400.00
Annual Office/hot desks rent $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00
Smart or remote hands and other $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00
misc. services

Overall Discount Amount $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Year
Dollar Value (in million $) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Total CAPEX (Year 0 , undiscounted) $0.67
Annual OPEX Expenditure $5.73 $5.73 $5.73 $5.73 $5.73 $5.73 $5.73 $5.73 $5.73 $5.73 $5.73 $5.73 $5.73 $5.73 $5.73

CoLo Net Present Value (in million $) $60.14 Copyright 2018 Amro Almashharawi. All Rights Reserved.
Copyright 2018 Amro Almashharawi. All Rights Reserved.

Total kW 1340
Annual DG Run Hours 48
DCiE 55.56%

Total Annual Units Tarif Tarif Unit Baseline Annual Cost

IT Loads Electricity (kWH) 5,340,972.00 0.1 $ per kwH $534,097.20

Non-IT Loads Electricity (kWH) 2,373,765.33 0.1 $ per kwH $237,376.53

Water (litre) 2,670,486.00 0.0015 $ per litre $4,005.73
Diesl (litre) 16,157.18 1.3 $ per litre $21,004.34
 Yearly Consumption Escalator 2.00%

Note

Fixed ,DCiE is
maintained Year Electricity- IT LOADs Electricity- Non IT Water Diesl
1 $534,097.20 $237,376.53 $4,005.73 $21,004.34
2 $544,779.14 $237,376.53 $4,085.84 $21,004.34
3 $555,674.73 $237,376.53 $4,167.56 $21,004.34
4 $566,788.22 $237,376.53 $4,250.91 $21,004.34
5 $578,123.99 $237,376.53 $4,335.93 $21,004.34
6 $589,686.47 $237,376.53 $4,422.65 $21,004.34
7 $601,480.19 $237,376.53 $4,511.10 $21,004.34
8 $613,509.80 $237,376.53 $4,601.32 $21,004.34
9 $625,779.99 $237,376.53 $4,693.35 $21,004.34
10 $638,295.59 $237,376.53 $4,787.22 $21,004.34
11 $651,061.51 $237,376.53 $4,882.96 $21,004.34
12 $664,082.74 $237,376.53 $4,980.62 $21,004.34
13 $677,364.39 $237,376.53 $5,080.23 $21,004.34
14 $690,911.68 $237,376.53 $5,181.84 $21,004.34
15 $704,729.91 $237,376.53 $5,285.47 $21,004.34

Year IT Load (average) Total Facility Load

1 5,340.97 7,714.74
2 5,447.79 7,821.56
3 5,556.75 7,930.51
4 5,667.88 8,041.65
5 5,781.24 8,155.01
6 5,896.86 8,270.63
7 6,014.80 8,388.57
8 6,135.10 8,508.86
9 6,257.80 8,631.57
10 6,382.96 8,756.72
11 6,510.62 8,884.38
12 6,640.83 9,014.59
13 6,773.64 9,147.41
14 6,909.12 9,282.88
15 7,047.30 9,421.06

MWH MWH
 Total
$796,483.80
$807,245.86
$818,223.16
$829,420.01
$840,840.79
$852,489.99
$864,372.17
$876,491.99
$888,854.22
$901,463.68
$914,325.34
$927,444.23
$940,825.50
$954,474.39
$968,396.26