# Significant Cost Savings

The Tier-S and Tier-H model offers substantial financial advantages over traditional data centers.

### Capital Expenditure (CapEx) Reduction:
- **No Dedicated Buildings**: The compact, sealed containers eliminate the need for purpose-built data center buildings, raised floors, or complex HVAC systems.
- **Reduced Construction Costs**: High-end data centers can cost over **$10 million per megawatt** to construct. The Tier-S and Tier-H model reduces CapEx by **40-60%**.

### Operational Expenditure (OpEx) Reduction:
- **Lower Maintenance**: The low-maintenance design reduces ongoing operational costs.
- **Energy Savings**: Annual energy savings of over **$500,000 per megawatt** installed.