TCO CALCULATOR

GPU TCO Analysis: The Economics of Scale

AI Summary • 12 Data Sources Verified

What is the TCO of an NVIDIA H100 cluster?

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.

Key Data Points

  • H100 Node CapEx: ~$300,000 - $350,000
  • Power Density: 10.2kW per 8-GPU node (max load)
  • Break-even Point: 14-18 months vs CSP prices
  • Residual Value: 25-35% after 36 months
  • OpEx Load: ~40% of lifetime total cost

Hardware Ownership Models

Cloud (On-Demand)

Fastest deployment, zero CapEx, but highest $/hour and zero residual value.

  • × $3.00 - $4.50 / GPU hour
  • ✓ No long-term liability

Leasing (Operating)

Off-balance sheet, fixed payments, predictable OpEx without large upfront cash outlay.

  • ✓ Predictable cash flow
  • × Total cost > Purchase

Direct Purchase

Lowest effective hourly rate over 3+ years and retains asset residual value.

  • ✓ ~$1.20 effective hour rate
  • × High initial CapEx

Frequently Asked Questions

What are the hidden costs of GPU ownership?

Network transceivers, cabling, top-of-rack switches, and specialized insurance are often overlooked, adding 10-15% to the initial hardware CapEx.

How does cooling type affect TCO?

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.

Is it better to lease or buy B200s?

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.

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