Total Cost of Ownership Analysis

Build vs. Colo vs. Cloud

Compare 5-year and 10-year Total Cost of Ownership across deployment models with real market data from 12 global regions

The "build or buy" decision can swing tens of millions of dollars over a decade — and most spreadsheet models quietly ignore half the variables.

Should you build your own facility, lease colocation space, or go all-in on cloud? The answer depends on scale, growth trajectory, region, and dozens of cost levers most models skip. This calculator uses 2025-2026 market data from Turner & Townsend, CBRE, Cushman & Wakefield, and IEA to model construction costs, wholesale colo rates, cloud pricing, and year-over-year inflation for power, staffing, and maintenance. Pick your region, set your capacity, and see which model wins — and more importantly, when the crossover happens.

12 global markets 3 deployment models Stacked cost breakdown Monte Carlo simulation (Pro)

General-purpose estimate — actual costs depend on vendor negotiations, site conditions, and procurement timing. Consult qualified professionals for investment decisions.

N. Virginia — Market Data
Build Cost --
Colo Rate --
Power Rate --
Staff Cost --
Land Cost --
DC CAGR --
Corp. Tax --
Currency --
Market Rate Outlook
Indexed to Year 1 = 100 · build / colo / power trajectory
Source: Turner & Townsend DCCI 2025, CBRE H1 2025, IEA Electricity 2025
TCO Comparison
Best Option
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N. Virginia5 MW, 5 years, Tier III
Build TCO ?
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Colo TCO ?
--
Cloud TCO ?
--
Best Option ?
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Build CAPEX ?
--
Initial investment
Yr 1 OPEX (Build) ?
--
Annual operating cost
Cost per kW ?
--
Best option effective
Breakeven Year ?
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Build vs. Colo crossover
TCO Breakdown by Category
Dynamic Insight
Adjust the inputs to see a cost comparison...
Key Assumptions
All calculations performed client-side. No data leaves your browser.
Unlock Monte Carlo, Sensitivity Tornado, Multi-Period Projections & Strategic Narrative with Pro
Build: --/MW
Colo: --/kW/mo
Power: --/kWh
Staff: --/yr
Land: --/sqft
CAGR: --
Turner & Townsend DCCI 2025 CBRE H1 2025 Cushman & Wakefield 2025 IEA Electricity 2025-2026 Glassdoor / PayScale 2025

Detailed Cost Comparison

Cost Category Build Colo Cloud
Adjust inputs above to see detailed cost comparison
Methodology & Assumptions
Build Model
CAPEX = IT Load (MW) × Regional Cost/MW × Tier Multiplier. Annual OPEX includes power (IT × PUE × 8,760h × $/kWh), staffing (headcount × salary), maintenance (3% of CAPEX), insurance (0.7% of CAPEX), network ($20K/MW/mo), and overhead (4% of OPEX). Inflation applied per-category annually.
Colo Model
Annual lease = IT Load (kW) × Wholesale Rate ($/kW/mo) × 12 months. Includes setup fees ($50K/MW), reduced staffing (1.5 FTE/MW), network connectivity ($15K/MW/mo), and 3% overhead. Annual escalation of 3% applied to lease costs. Growth rate scales capacity requirements.
Cloud Model
Annual compute = IT Load (kW) × Cloud Rate ($420/kW/mo) × 12 × (1 - discount). Adds 15% for data egress, 10% for support tier, and 2% miscellaneous. Cloud inflation at 2.5% p.a. Growth rate compounds capacity. No CAPEX or staff required.
Disclaimer: This calculator provides estimates based on publicly available market data from Turner & Townsend, CBRE, Cushman & Wakefield, IEA, and industry benchmarks (2025-2026). Actual costs vary significantly based on specific site conditions, vendor negotiations, and market timing. Always consult with qualified professionals for investment decisions.
Sources: Turner & Townsend H1 2025, CBRE DC Trends 2025, IEA Energy Outlook Data vintage: 2025–2026 market benchmarks For investment decisions, consult a qualified DC infrastructure advisor