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docs_tier_h_s/collections/intranet/design benefits/lower_capexopex.md
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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.