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Budget

Budget Constraints

What is it?

The financial limits for building and operating a data center.

Theoretical Definition

Capital expenditure (CAPEX) for construction and Operational expenditure (OPEX) for ongoing running costs.

Why is it Important?

  • Budget dictates design choices.
  • Poor budgeting leads to cut corners (security/power risks).

How is it Planned?

  • Estimate upfront build costs + yearly OPEX.
  • Balance on-prem, colocation, or cloud models.

Impact Down the Line

Overbudget = project fails. Underbudget = unreliable DC.

Real World Example

A hyperscale DC may cost >$500M, while a mid-size enterprise DC ~ $5–10M.