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Finance & Investment

capex / opex

Capital Expenditure / Operating Expenditure

The two categories of business spending. Capex includes one-time investments in physical assets (land, buildings, equipment); opex includes ongoing costs (electricity, labor, maintenance). Data centers are extremely capital-intensive: a 1 GW facility might cost $5-10 billion in capex but generate decades of revenue. Understanding this split explains why access to capital is crucial for infrastructure development.

Referenced in the Book

Discussed in Chapter 8 of This Is Server Country

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