---
title: "Data Centre Cost Reduction"
description: "Learn how nickel-zinc batteries and C&I energy storage cabinets can reduce data centre space, safety and power costs."
image: "/media/i/98531485-78c1-4a34-a433-4bcaeb978dde/a-new-perspective-on-cost-reduction-in-data-centers.webp"
---

How Much Does it Cost to Build a Data Centre?

Data centre construction is a highly complex and capital-intensive field. With the explosive growth in demand for computing power, how to rapidly and safely expand data centre capacity without losing control of costs has become a focal point for the industry.

Generally speaking, the cost of building a data centre ranges from $600 to $1,100 per square foot, or $7 million to $12 million per megawatt of IT load. For example, constructing a 700,000-square-foot, 60-megawatt data centre in Northern Virginia, USA, can cost as much as $420 million to $770 million.

However, the cost challenges are not limited to the construction phase. Electricity costs during the operational phase, grid upgrade expenses during expansion, and potential losses from fire risks are also key factors affecting the long-term return on investment for data centres.

Nickel-Zinc Batteries: Higher Energy Density in a Smaller Space

Gerchamp is set to launch an integrated nickel-zinc solution, expanding from single cells to a system with an embedded Battery Management System (BMS), specifically designed for data centres and critical infrastructure. This new product will make its debut at the Frankfurt DCW exhibition in May this year.

Traditional data centres often use lead-acid batteries as backup power, but these are bulky, heavy, have low energy density, and pose a risk of thermal runaway. In comparison, nickel-zinc batteries offer the following significant advantages:

Higher Energy Density: With 1/2 to 1/3 the volume and weight, they deliver 2 to 4 times the energy, significantly reducing the battery room footprint and thereby lowering building space costs.

Intrinsically Safe, No Thermal Runaway Risk: Nickel-zinc batteries do not experience thermal runaway, greatly reducing fire hazards. This, in turn, lowers the investment and maintenance costs associated with data centre fire protection systems.

This means that data centres using nickel-zinc batteries can not only save on space and land costs during the building shell phase but also achieve structural cost reductions in fire protection and safety systems.

Extended service life: Traditional lead-acid batteries require replacement every 3-5 years, whereas nickel-zinc batteries have a service life exceeding ten years. The reduced replacement frequency actively lowers total procurement costs. Additionally, the excellent stability of nickel-zinc batteries simplifies maintenance procedures during operation, further reducing labour costs. In terms of reliability, the failure of a single battery does not affect the overall system, and it will not cause power outages or large-scale losses due to individual battery issues, which is something lead-acid batteries cannot achieve.

Sustainable Development: Gerchamp’s nickel-zinc batteries achieve a recycling rate exceeding 90% without containing toxic substances or heavy metals. When nickel-zinc batteries reach the end of their lifespan, the readily accessible recycling pathways eliminate operators’ final concerns.

Commercial and Industrial (C&I) Energy Storage Cabinets: Peak Shaving and Valley Filling, Delaying Grid Upgrade Investments

As data centre loads continue to rise, the traditional approach is to upgrade grid-side infrastructure. However, this is often costly and involves long lead times. The emergence of C&I energy storage cabinets offers a more flexible and economical solution:

- Peak Shaving and Valley Filling, Reducing Electricity Bills: By charging during periods of low electricity prices and discharging during peak periods, they can significantly reduce a data centre’s daily operational electricity costs.

- User-Side Expansion, Avoiding Grid Upgrades: When a data centre needs to expand its load capacity, it doesn’t have to wait for grid-side upgrades. Simply adding energy storage cabinets on the user side allows for a rapid response to load growth, drastically lowering expansion costs.

This “storage-first” strategy is becoming the preferred path for more and more data centre operators.

Comprehensive Advantages: Optimising TCO from Construction to Operation

Cost control for data centres is no longer merely a matter of construction; it is a systemic project involving energy, safety, space, and power infrastructure. Nickel-zinc batteries and C&I energy storage cabinets together provide an efficient, safe, and economical optimisation path for this complex system.

---

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