Data Center Hosting & Storage Services Cost and Pricing Analysis
In this data center hosting & storage services procurement intelligence report, we have estimated the pricing of the key cost components. Operating a major data center typically costs between USD10 million and USD25 million per year. The majority of data center upgrades involve electrical equipment, with prices per gross square foot ranging from USD 280 to USD 460. HVAC (heating, ventilation, and air conditioning) is a different principal system that adds additional costs of USD125 to USD215 per gross square foot. The cost of the service might vary depending on how many gigabytes are used; for consumption of under 100GB, it costs about USD14 per month or USD168 per year; for usage of 101GB to 500GB, it costs about USD30 per month or USD360 per year. Any usage of more above 1TB will cost USD85 per month or USD1,020 per Tb/Year. 501GB to 1TB will cost USD65 per month or USD780 per year.
The total cost of ownership includes staff costs as well. That refers to security personnel and facility technicians. Additionally, to maintain equipment functioning properly, a data center needs to be cleaned at least once a year. That typically costs between USD 6,000 and USD 7,000 each year.
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Operational Capabilities - Data Center Hosting & Storage Services
Industries Served - 30%
Geographic Service Provision - 23%
Years in Service - 15%
Revenue Generated - 12%
Employee Strength - 12%
Certifications - 8%
Functional Capabilities - Data Center Hosting & Storage Services
Costs & Budget - 30%
Scalability20%
Tiers (I/ II/ III/ IV) - 15%
Deployment type (Enterprise, Co-location/ Cloud/ Edge/ Modular) - 15%
Security/ Data Recovery - 10%
Others - 10%
Rate Benchmarking
When analyzing the rate benchmarking of the data center hosting & storage services category, the geographic location, the quality of the service, nature of requirements and workforce cost are crucial factors. North American inventories are growing, with a supply of 2,132 MW (2.1 GW) increasing by 19.5% between Q1 2022 and Q1 2023. Construction costs have increased, the vacancy rate is at a ten-year low and available MW dropped from 46.6 MW to 38.4 MW. Leasing activity remained resilient despite rising interest rates and unstable economic conditions, driven by robust demand from technology, financial services, healthcare, and telecommunications sectors. North America's pricing trend increased in Q1 2023 due to supply constraints, including power availability, expensive land, labor costs and supply delays. Nuclear power, which supplies 34% of electricity, offers potential solutions. Investment in nuclear energy could potentially alleviate future power availability issues in five to 10 years.
The number of data centers in the Asia-Pacific region is quickly growing, with each of Tokyo, Singapore, and Sydney having more than half a GW of electrical capacity. Inventory in Sydney is up 30% from last year. Operators have trouble getting power, but vacancies have decreased in most important markets. Less than 4 MW of space is available for lease in Singapore, and vacancies have decreased by 1.5% to 2% in Tokyo and Hong Kong during the past year. Asia-Pacific leasing activity remains resilient despite macroeconomic headwinds and global technology sector rationalization. Sydney leads in net absorption with over 99 MW, while Tokyo has 43 MW. Singapore and Hong Kong have muted activity levels, while emerging markets like Mumbai and Seoul show growth. Colocation rental rates remain strong, with Singapore being one of the most expensive globally at over USD300 per kW and Tokyo at around USD200 per kW.
List of Key Suppliers
- Equinix
- Digital Realty
- Microsoft Azure
- NTT Global Data Centers
- Telehouse/KDDI
- CoreSite (American Tower)
- Google Cloud Platform
- CyrusOne
- GDS Holdings
- Amazon Web Services
- 365 Data Centers
Supplier Newsletter
- In July 2023, Digital Realty introduced its first data center NVIDIA DGX H100, a multi-node, DGX-integrated, AI training as a service solution that is tailored to the particular needs of enterprise AI. It offers its consumers access to a sizable, connected community of networks, data centers, cloud services, and partners as well as world-class services, expertise, and infrastructure that are AI ready.
- In June 2023, A renowned provider of data center infrastructure and services, NTT Ltd, has unveiled the opening of its newest campus for hyperscale data centers in Chennai, India, as well as the arrival of its MIST subsea cable system. The 12-fiber pair MIST cable system, with a capacity of more than 200 TBPS, is the first cable to land in India.
- In December 2022, the Joint Warfighting Cloud Capability (JWCC) contract between Amazon Web Services (AWS) and the U.S. Department of Defense (DoD) includes the availability of AWS Modular Data Centre. The DoD depends on data-intensive, low-latency modern military apps to support crucial field coordination and communications.
- In December 2022, Microsoft and LSEG enter in a 10-year strategic relationship to develop solutions for cloud infrastructure and next-generation data and analytics. Microsoft will invest in LSEG through the purchase of shares, engineer LSEG's data infrastructure, and create user-friendly next-generation products for productivity, data and analytics, and modelling using Microsoft Azure, AI, and Teams.
- In October 2021, big tech Google unveiled Google Distributed Cloud- for data centers, in the cloud and at the edge. The collection of services, Google Distributed Cloud includes both hardware and software to expand infrastructure. It is accessible by Anthos and is perfect for local data processing, edge computing, modernizing on-premises systems, and satisfying strict data security, privacy, and sovereignty requirements.
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Data Center Hosting & Storage Services Procurement Intelligence Report Scope
- Data Center Hosting & Storage Services Category Growth Rate : CAGR of 14.2% from 2023 to 2030
- Pricing Growth Outlook : 10% - 12% (Annually)
- Pricing Models : Value-based pricing model, performance-based model, dynamic pricing model, subscription-based pricing
- Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
- Supplier Selection Criteria: Type, scalability, technical expertise, security measures, cost and value, support and maintenance, regulatory compliance, and others
- Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Data losses caused as a result of data breaches are no less than a nightmare for any organization.
The loss of critical data can have severe and direct implications on key business operations and damaged the reputation in the industry.
The magnitude of physical security in a Data Center is much higher, so businesses tend to prefer a smaller Data Center present on their own premises.
Strong data redundancy mechanism used by the Cloud Service Providers ensures data remains continuously available with users' near-zero downtime.Avoiding Device Failure, Human Errors& Malware-Based CorruptionsThere are three most common reasons for data losses in a Hybrid Cloud.
One of the key advantages of using Hybrid Cloud Computing is that it is scattered across several systems managed by the Cloud Service Provider.
An added advantage includes the storage architecture present in the Hybrid Cloud keeps all the data at single storage, avoiding multiple copies of the same data being stored across different servers.
