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Buying spare compute is cheaper than buying backup generators, because the servers cost fifty times what the generator does.

Drawn from what Austin Vernon said

What Austin Vernon actually said

  1. Austin Vernon Engineer and investor who writes quantitative posts…
    Installed generators cost ~$800/kW, and the data center capital cost, including servers, is ~$40,000/kW, so adding 1% more makeup compute capacity is money ahead of purchasing generators.

Added to korrents 7 Sept 2026 · How quotes work · Something wrong? Tell us

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