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Writer's pictureAlucid Team

Tool of the Week: Data Center Build vs. Colocation TCO Calculator

When deciding whether to build your own data center or opt for colocation, comparing the Total Cost of Ownership (TCO) is crucial to making an informed decision. Schneider Electric's online TCO calculator is a powerful tool that helps you assess which option is more financially viable for your business.

 

The tool factors in various data center attributes—like energy usage, location, and equipment costs—and different pricing models. It calculates the TCO over time, giving you a detailed breakdown of costs for both building and maintaining your own data center versus leasing space from a colocation provider.



One key benefit of using this calculator is that it pinpoints the cash cross-over point—the moment where building becomes more expensive than colocation or vice versa. This lets you see when one option becomes more cost-effective in the long run. The tool also highlights the impact on cash flow, showing the upfront costs and how each option affects your finances over time.

 

In short, the Schneider Electric TCO calculator provides invaluable insights, allowing you to make data-driven decisions that align with your business’s needs and growth plans.

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