Data Center Solutions Build-to-Suit Data Centers
Build-to-Suit Data Centers
H5 Data Centers offers organizations the ability to customize the location, size, design, and resiliency level for their mission-critical data center needs.
A build to suit lease is a structure that allows the customer to design and customize a data center facility to meet specific or unique location or design needs without a large initial capital expenditure that comes with building and owning a data center.
An H5 Data Center build to suit can offer several key advantages:
- Enables an enterprise to select the ideal geographic location that meets its business continuity parameters, an optimal tax environment, an ideal power generation mix and proximity to customers and business operations centers
- Allows an enterprise to forgo large capital expenditures associated with a new data center and instead shift such payments to (1) an operating or capital lease, and (2) strategic operating initiatives that likely offer a higher return on investment
- H5 can contribute its expertise and purchasing power and vendor relationships to leverage time to market, land acquisition experience, data center construction and management expertise
- New data center construction, if done properly, can reduce long-term Total Cost of Ownership (TCO) by incorporating LEED-certified building practices and energy-efficient MEP infrastructure systems that drive down Power Usage Effectiveness (PUE)
- Further, H5 can evaluate a larger scale development for other companies that may help drive down the total cost of ownership for the tenant
- A building or site can also be designed to incorporate a company's brand and image which may help boost productivity and employee morale
How Do Build-to-Suit Data Centers Work?
In a build to suit to lease arrangement, the customer selects a data center developer, like H5 Data Centers, to design and build a customized data center on an ideal site and, upon completion, the customer leases the data center back from H5, typically on a long-term basis. Under a build-to-suit structure, the customer never owns the data center, but can maintain full control upon completion if desired.
A build-to-suit is not for everyone. On average, a build to suit may take longer to complete and be more expensive than other data center solutions such as wholesale colocation.
Built to Suit Use Cases
- Relocate or expand from an existing data center
- Reduce corporate debt (if own a legacy data center)
- Mergers/acquisitions that alter optimal location for existing data centers
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