People often picture a data centre as a building. For an AI data centre, the building is the smaller part of the bill. One published model of a large AI data centre puts more than half of the up-front cost into the servers, about a third into the facility that houses, powers and cools them, and most of the rest into the network. Land is a very small share. And the servers, the biggest item, are also the part that has to be replaced first.
One model, split into ₹100
Epoch AI, an independent research group, modelled a one-gigawatt AI data centre owned and run by a large US cloud company. It estimates about US$38 billion of up-front cost. Shown as shares of every ₹100, the split is:
| Part | Up-front cost in the model (US$ million) | Of every ₹100 (calculated) |
|---|---|---|
| Servers | 21,188 | about ₹56 |
| Facility: building, power and cooling | 11,433 | about ₹30 |
| Network | 4,925 | about ₹13 |
| Land | 172 | less than ₹1 |
| Utility works | 164 | less than ₹1 |
The model assumes NVIDIA GB200 NVL72 servers and US costs, so the split will differ elsewhere, but the pattern holds widely: the computers dominate.
Spent once, or spent again and again
The facility in Epoch AI's model is assumed to last 14 years and the IT equipment 5 years. So the server share of the money is not spent once; it recurs as servers are replaced. Epoch AI notes that shortening the IT lifespan to 3 years raises the total annual cost of its model data centre to US$12 billion, while extending it to 7 years lowers it to US$7 billion.
Why published figures differ
Many cost figures cover only part of the bill. Turner & Townsend's widely quoted cost per watt, for example, covers the shell and core and the mechanical and electrical fit-out, and excludes land, utility works and active IT equipment. A figure that leaves out the servers describes the smaller part of an AI data centre's cost.
What is not certain
- The split comes from one model of a very large US facility; a smaller site, or a site leasing space to others who bring their own servers, divides its money very differently.
- Server prices and lifetimes are changing quickly.
Sources and method
- Epoch AI (Michael and Cottier), One-gigawatt AI data center up-front CapEx breakdown, 14 May 2026. https://epoch.ai/data-insights/ai-datacenter-cost-breakdown
- Turner & Townsend, Data Centre Construction Cost Index 2026, United States edition, methodology. https://reports.turnerandtownsend.com/data-centre-construction-cost-index-2026-us/methodology
Method: each link was opened on 29 October 2026 and every figure was taken from the page or filing cited beside it, in the currency stated there; shares marked as calculated are simple arithmetic on the cited figures. Company and consultancy figures describe their own data and models; they are not recommendations.
Read next
This article provides general information, not investment advice or an offer of securities.