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Cost & Energy

Infrastructure TCO Reference

Typical CapEx vs OpEx shares, cost-per-rack and cost-per-kW planning ranges for server rooms and small on-prem data centers in Europe, and the PUE × rate sensitivity behind them. Use alongside the Infrastructure TCO Calculator.

Last updated: July 2026

Terms

TCOTotal Cost of Ownership
The full price of running something over its whole life, not just what you paid to buy it — including electricity, maintenance and staff time. Often far higher than the purchase price alone.
CapExCapital Expenditure
Money spent upfront to buy equipment or build something — a one-time purchase cost, as opposed to the ongoing running costs (OpEx).
OpExOperational Expenditure
The ongoing cost of running something day to day — electricity, staff, maintenance contracts — as opposed to the one-time purchase cost (CapEx).
PUEPower Usage Effectiveness
How much total electricity a facility uses for every unit that reaches the actual computers. 1.5 means 50% extra goes to cooling and power losses. Lower is better.
UPSUninterruptible Power Supply
A battery backup that keeps equipment running for a short time if mains power cuts out, giving generators time to start or equipment time to shut down safely.

CapEx vs OpEx over 5 Years (typical SME facility)

Illustrative split for a 10-rack, 5 kW/rack facility at PUE 1.5 and €0.30/kWh with modest staffing — the calculator's worked example.

ComponentShare of 5-year TCODriver
Energy~54%IT load × PUE × €/kWh × 8,760 h — the single biggest item
Staffing / operations~22%24/7 coverage creates a fixed floor that doesn't scale with racks
IT CapEx (annualized)~16%Refresh every 4–5 years
Infrastructure CapEx (annualized)~7%Racks/UPS/cooling cost more than IT upfront, but live 10–15 years

The pattern to remember: OpEx — led by power — is roughly three-quarters of a typical 5-year SME TCO. The purchase price is the smaller part of the decision.

Energy Cost per kW of IT Load per Year (PUE × rate sensitivity)

Annual electricity cost per kW of IT load, continuous operation (8,760 h) — this is why PUE and your €/kWh rate are the biggest levers in the whole model.

PUE€0.20/kWh€0.30/kWh€0.40/kWh
1.3 (well-optimized SME)€2,278€3,416€4,555
1.5 (typical air-cooled)€2,628€3,942€5,256
1.8 (legacy / unmanaged)€3,154€4,730€6,307

Read: a 20-rack facility at 5 kW/rack (100 kW IT) moving from PUE 1.8 to 1.5 at €0.30/kWh saves ≈€79k per year — measure yours with the PUE Calculator.

Planning Ranges — Cost per Rack per Year (SME scope, Europe)

All-in annual TCO per rack (annualized CapEx + OpEx), assuming PUE ~1.5, €0.25–0.35/kWh and proportionate staffing. Planning-level orientation only — your inputs decide.

Rack profileTypical densityTCO per rack / yearNotes
Light (network/edge)1–3 kW€8k – €18kStaffing share dominates at small scale
Standard server rack4–7 kW€25k – €45kThe common SME case — energy ≈ half
Dense compute8–20 kW€50k – €90kEnergy dominates; cooling design matters

Hyperscale/AI racks (100 kW+, liquid cooling, €10M+/MW builds) follow different economics and are deliberately outside this reference.

The TCO Method

Energy/yr = IT kW × PUE × 8,760 h × rate

Annualized CapEx = IT CapEx ÷ refresh years + (infra + build CapEx) ÷ infrastructure lifetime

Annual TCO = annualized CapEx + energy + staffing + maintenance + space + network — multiplied by the analysis period for the total, divided by racks or IT kW for the comparable KPIs.

Straight-line annualization keeps the model transparent; it deliberately excludes discounting, taxes and financing — those belong in the final financial review, not the planning comparison.

Frequently Asked Questions

Why does OpEx usually dominate TCO?

Over 5–10 years, power (IT × PUE × €/kWh) and staffing typically outweigh the upfront hardware spend — especially at EU/German electricity prices. That's why comparing purchase prices alone routinely picks the wrong option.

On-prem vs colocation — which is cheaper?

On-prem is CapEx-heavy, colo is OpEx-heavy. It depends on utilization, scale, your electricity rate and whether you already carry 24/7 staffing — the calculator compares both over your chosen period.

Do these figures apply to hyperscale/AI data centers?

No — everything here is scoped to server rooms and small on-prem facilities at 1–20 kW per rack. Hyperscale economics are a different regime.