The lowest purchase price is not always the lowest-cost solution over the operating life of a data center. Lifecycle costing provides a structured way to compare alternatives over a defined study period.
Use a defined study period
ISO 15686-5:2017 provides guidance on life-cycle costing for buildings and constructed assets. The study period should be long enough to capture significant maintenance and replacement events.
Include recurring and non-recurring cost
Relevant costs can include acquisition, installation, energy, preventive maintenance, corrective maintenance, replacement parts, software support, testing, refurbishment and disposal.
Account for different asset lives
Batteries, UPS modules, generators, chillers, controls and network equipment have different useful lives. Replacement cycles should therefore be modelled separately.
Consider efficiency degradation
Energy performance may change with loading, age, fouling, control settings and maintenance condition. The lifecycle model should not assume ideal efficiency forever.
Use consistent discounting
Future costs should be compared on a consistent present-value basis when performing financial evaluation. The selected discount rate and escalation assumptions should be documented.
References
- ISO 15686-5:2017, Life-cycle costing.
- ISO 21502:2020, Guidance on project management.
