How much does it cost to build a 1GW AI data center? A $38 billion entry fee, with 60% used to buy GB200.

AIMPACT news, May 15 (UTC+8): according to Beating Monitoring by Dongcha, AI research organization Epoch AI calculated the ownership cost of a typical AI data center with 1GW capacity. Building such a data center requires an upfront capital expenditure of $3.8 billion, plus $900 million in daily operating expenses each year. If the capital expenditure is amortized over the asset life, the data center’s annualized total cost is $850 million. Among these, servers (with the assumption that all models use NVIDIA GB200 NVL72 systems) make up the absolute majority, with annual depreciation costs of up to $5.0 billion, accounting for 60% of total spending. By comparison, daily operating expenses are negligible on the ledger. Even the largest component—energy costs—amounts to only $600 million per year. This accounting is highly sensitive to the hardware depreciation period. Epoch currently assumes an IT equipment lifespan of 5 years and a data center facility lifespan of 14 years. If the IT equipment lifecycle is shortened to 3 years, the data center’s annualized total cost will surge to $12 billion; if extended to 7 years, it can be reduced to $7.0 billion.
(Source: BlockBeats)
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OldKeyboardTraitor
· 4h ago
NVIDIA is laughing their heads off; those who sell shovels are always steady.
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QuietValidator
· 5h ago
900 million years of operating costs, once server depreciation is complete, is it time to upgrade to the next generation?
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WhirlpoolInATeacup
· 5h ago
The 1GW built by GB200, just thinking about the electricity bill is exciting.
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Salt-BakedSentimentChart
· 5h ago
38 billion in initial investment, this threshold directly excludes small and medium players from the game.
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PfpArchaeologist
· 5h ago
Annualized 8.5 billion, averaging 23 million dollars burned daily, the AI arms race is too crazy
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GateUser-8acf43da
· 5h ago
The trick of spreading out capital expenditures, financial genius
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