You going to have the following?
- reedudant internet connections with diverse paths?
- halon fire suppression
- environmental controls
- deisel power generator
all this is supplied when use a server collocation service.
These are all super critical, however. You can't expect a startup to have everything in place on day one.
What you may expect is that he invest profits from the first few months into this new equipment.
Ideally he would lure in his first 10 customers with discounted prices, buy tht new stuff and then charge everyone the new price.