The Total Cost of Ownership (TCO) for an 8-GPU H100 node over 3 years ranges from $450k to $650k. This includes CapEx (hardware purchase), OpEx (power at $0.06-0.12/kWh), and colocation fees ($150-250/kW/month). Buying typically breaks even against cloud leasing at 14-18 months of high utilization.
Fastest deployment, zero CapEx, but highest $/hour and zero residual value.
Off-balance sheet, fixed payments, predictable OpEx without large upfront cash outlay.
Lowest effective hourly rate over 3+ years and retains asset residual value.
Network transceivers, cabling, top-of-rack switches, and specialized insurance are often overlooked, adding 10-15% to the initial hardware CapEx.
Liquid cooling has higher initial setup costs (CapEx) but reduces power consumption (OpEx) by 10-15% and increases hardware lifespan by maintaining lower operating temperatures.
For first-generation Blackwell (B200) deployments, many operators prefer 12-24 month leases to mitigate the risk of rapid engineering iterations, despite the higher effective cost.
Track H100/A100/B200 lease rate trends - core market data
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