Cost Analysis

Data Center Cost Breakdown & ROI Analysis

Complete guide to data center costs - CAPEX, OPEX, ROI calculations, budgeting templates, financial planning, and investment analysis for Indian data centers.

Complete Cost Analysis Framework

Data Center Cost Calculator

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Capital Expenditure (CAPEX)

Component Small DC (10 racks) Medium DC (50 racks) Large DC (200 racks) Notes
Servers ₹50-100 lakhs ₹2-5 crores ₹10-50+ crores Dell, HPE, Cisco brands
Storage Systems ₹20-50 lakhs ₹1-3 crores ₹5-20 crores SAN, NAS, object storage
Networking ₹10-30 lakhs ₹50 lakhs-2 crores ₹2-10 crores Switches, routers, firewalls
Power Infrastructure ₹20-50 lakhs ₹1-3 crores ₹5-15 crores UPS, generators, PDUs
Cooling Systems ₹15-40 lakhs ₹80 lakhs-2.5 crores ₹4-12 crores CRAC units, chillers
Racks & Infrastructure ₹5-15 lakhs ₹30-80 lakhs ₹1-3 crores Cabinets, cabling, management
Security Systems ₹10-20 lakhs ₹50 lakhs-1 crore ₹1-3 crores Access control, CCTV, fire
Total CAPEX ₹1.3-3.05 crores ₹6.1-17.3 crores ₹28-113+ crores Excluding building/land

Operational Expenditure (OPEX)

Expense Type Small DC Monthly Medium DC Monthly Large DC Monthly Percentage of Total
Electricity ₹5-7 lakhs ₹25-35 lakhs ₹1-1.4 crores 40-50%
Internet Bandwidth ₹1-3 lakhs ₹5-15 lakhs ₹20-50 lakhs 10-15%
Staff Salaries ₹2-4 lakhs ₹8-15 lakhs ₹30-60 lakhs 15-20%
Software Licensing ₹1-2 lakhs ₹5-10 lakhs ₹20-40 lakhs 5-10%
Maintenance Contracts ₹50k-1 lakh ₹2-5 lakhs ₹10-25 lakhs 3-5%
Security Services ₹1-2 lakhs ₹3-6 lakhs ₹10-20 lakhs 3-5%
Total Monthly OPEX ₹10.5-19 lakhs ₹48-86 lakhs ₹1.9-3.35 crores 100%
Annual OPEX ₹1.26-2.28 crores ₹5.76-10.32 crores ₹22.8-40.2 crores -

ROI & Financial Analysis

Revenue Streams

  • Colocation space rental
  • Managed services
  • Cloud services
  • Network connectivity
  • Professional services

ROI Calculation Example

  • Medium DC (50 racks)
  • Total CAPEX: ₹10 crores
  • Monthly OPEX: ₹50 lakhs
  • Monthly Revenue: ₹80 lakhs - ₹1.2 crores
  • Payback Period: 18-36 months
  • Annual ROI: 25-50%

Financial Planning Tips

  • Phase implementation to spread costs
  • Consider OPEX vs CAPEX models
  • Plan for 20% contingency
  • Include hardware refresh cycles
  • Factor in inflation (5-7% annually)

Funding Options in India

Funding Source Interest Rate Tenure Collateral Best For
Bank Term Loan 9-12% p.a. 5-7 years Fixed assets Established businesses
MSME Loan 8-11% p.a. 3-5 years Minimal Small data centers
Venture Capital Equity dilution 5-7 years None High-growth startups
Government Schemes Subsidized (6-8%) 5-10 years Project assets Tier 2/3 cities