Data Center Space: Lease, Buy or Build?

Author Justin Fink Read bio
Tags: commercial real estate data centers
Date: October 10, 2022

It’s no surprise that more and more companies are debating whether to host their own data center or simply lease one, considering that cloud storage usage is at all times high

Data center service providers must take a variety of factors into account in the contemporary IT landscape. The choice of whether to construct a business-owned facility or rent wholesale space in another vendor’s data center is one of the most crucial. It can be challenging to decide because both sides of this debate provide substantial advantages.

Both options come with benefits and challenges, but we’re here to help you determine what is the best solution for your business.

What Are The Main Differences?

Let’s start with the most obvious difference: renting or leasing a data storage center offers more flexibility, while buying a data center comes with more control.

One of the most important things to keep in mind if you’re leaning towards owning a data center is to determine how much it would add or detract from your core business operations. Owning a data center usually brings more focus to businesses, which is accomplished by relying on experts to operate and secure said data center.

So, if you are thinking about buying or building a data center in order to have more control over security of data, we recommend considering several crucial factors. 

On the other hand, when leasing or renting data center space you will need to make sure owners will keep your data secure and prevent downtime.

The following are key considerations that we hear from our prospects when deciding whether to build or buy, along with some of the thoughts on this matter.

White and blue cables plugged in

Key Considerations for Buying or Building a Data Center

Upfront Capital

Determine how you’ll pay for both the initial capital outlay and continuing costs before acquiring a data center. Owning your own data center to support client information and cloud execution is an addition to key business requirements, therefore you may want to use resources outside of your typical operating budget.

Employee Expertise

Do you have IT professionals on your team or are you able to hire them to set up and manage a data center’s numerous systems, including cooling, electrical, UPS, generators, and more, on a regular basis?

Business Focus

Do you have all the knowledge necessary to oversee a whole data center without jeopardizing your company’s day-to-day operations? Although having ownership of a data center may give you more control, it also means you’ll have to put in more work. You don’t want to find that your primary business is taking up more of your time than managing the requirements for the data center.

Effort Level

What must be done in order to furnish the area completely as a data center? What regulations, safeguards, or construction or efficiency improvements are necessary?

Advantages of Owning a Facility

Companies have complete control over almost every aspect of their data centers when they construct them themselves, including the facility’s overall layout and even minute operating details like temperature and asset access. Companies that design and run their own data center facilities can manage capital expenditures by building out their resources gradually or in modules. Additionally, as the space is owned by the service provider, they are free to make whatever use of it, including using it to finance their own IT equipment or renting it out to other businesses at a profit.

Key Considerations for Leasing Data Center Space


What kind of UPS do they use, and what is the rating of its efficiency? Is it a dependable solution that will maintain your data’s accessibility without adding significant overhead fees to your lease?

Data Security

Does the data center provide the level of security that you and your customers need for the storage of your data? Is it safeguarded against both power interruptions and data breaches? Do they use UPS to regulate current and offer constant power?


The company might focus on its core business by outsourcing data center management, which might be a more appealing choice if there are any perceived gaps in the degree of knowledge needed to run a data center full-time.

We think that renting data center space is a long-term option that not only improves a balance sheet but also enables IT specialists to perform better in their positions.

Now that we’ve explored the main differences between leasing, buying, and building a data center, you should have a good idea of what option is best for your business. If you’re still not sure or would like help finding a data center that meets all your needs, our team of experts is here to help. We know all the ins and outs of data centers and can guide you to make the best decision for your business.