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Comment by kelseyfrog

1 day ago

Parent just means "a lot" and is using 90% to convey their opinion. The actual numbers are closer to 0.083%[1][2][3][4] and parent thinks they should be 0.01-0.1% of the total build cost.

1. Assuming 500,000 USD in permitting costs. See 2.

2. Permits and approvals: Building permits, environmental assessments, and utility connection fees add extra expenses. In some jurisdictions, the approval process alone costs hundreds of thousands of dollars. https://www.truelook.com/blog/data-center-construction-costs

3. Assuming a 60MW facility at $10M/MW. See 4.

4. As a general rule, it costs between $600 to $1,100 per gross square foot or $7 million to $12 million per megawatt of commissioned IT load to build a data center. Therefore, if a 700,000-square foot, 60-megawatt data center were to be built in Northern Virginia, the world’s largest data center market, it would cost between $420 million and $770 million to construct the facility, including its powered shell and equipping the building with the appropriate electrical systems and HVAC components. https://dgtlinfra.com/how-much-does-it-cost-to-build-a-data-...

Yeah, I was trying to be nicer than "you're making it up" just in case someone has the actual numbers.

He said bullshit budget, not budget. He's thinking about opportunity and attention costs, not saying that permits literally have a higher price tag than GPUs.