UII UPDATE 450 | JANUARY 2026
Intelligence Update
How scale and occupancy shape data center and colo economics
Choosing whether to place workloads in a colocation facility or an enterprise-owned data center involves many considerations: capability, risk posture, operating model and strategic priorities. Cost is never the sole factor — but it is a significant one.
This report presents a simplified, normalized cost model that enables an enterprise to compare the cost of building a new center against the cost of a colocation facility with the same characteristics.
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