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

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AIMPACT News, May 15 (UTC+8), according to Beating Monitoring by Dongcha, AI research organization Epoch AI has calculated the ownership costs of a typical 1GW capacity AI data center. Building such a data center requires an initial capital expenditure of $38 billion, plus an annual operating expense of $900 million.
If the capital expenditure is amortized over the asset's lifespan, the data center's annualized total cost is $8.5 billion. Among these, servers (assuming all models use NVIDIA GB200 NVL72 systems) constitute the largest portion, with annual depreciation costs reaching $5 billion, accounting for 60% of total expenses.
In comparison, daily operating expenses are negligible on the ledger. Even the largest component, energy costs, amount to only $600 million per year.
This calculation is highly sensitive to hardware depreciation periods. Epoch currently assumes an IT equipment lifespan of 5 years and a data center facility lifespan of 14 years.
If the IT equipment's lifecycle is shortened to 3 years, the data center's annualized total cost will soar to $12 billion; if extended to 7 years, it can be reduced to $7 billion.
(Source: BlockBeats)
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GateUser-0c86a4c9
· 11h ago
Annualized 8.5 billion, burning 23 million dollars every day just to open your eyes
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GateUser-4eae4cef
· 11h ago
Depreciation accounts for 60%, this calculation makes my heart bleed.
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GateUser-991fc58a
· 11h ago
7 years to reach 7 billion, the 5 billion saved is enough to buy how many GPUs
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ProofOfNap
· 11h ago
A three-year lifespan is too harsh; this depreciation rate is faster than a car's.
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MoonlightMineralWater
· 12h ago
5 billion dollars in depreciation, AI is the art of burning money
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