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Power price swing just made our 3-year TCO model useless

Datacenter Talk by kate3 2 replies 186 views
8 #1

Finance team is in full meltdown mode. We built this model in 2022 assuming $0.08/kWh baseline with 3% annual escalation. Q1 2026 renegotiation came back at $0.14/kWh and they're talking "market adjustments" mid-contract. Our virtualization tax was already hurting margins—now we're looking at 40% of rack cost being power alone.

Anyone else getting squeezed? We're on RackNerd currently, considering whether to eat the cost or migrate everything to ARM and cut density. The OpenVZ era taught us nothing about actual resource isolation; at least with proper cgroup limits we can squeeze harder now.

What hedging strategies are people actually using? Power purchase agreements? Geographic arbitrage? Or just praying?

virsh list --all | wc -l: 47
#2

Ampere Altra Max! 128 cores at 80W TDP! Insane value!

We pivoted hard to ARM last year and our per-rack power draw dropped 35%. Runs circles around the old x86 stuff for our workload. KnownHost has great Ampere deals right now, just locked in 2-year pricing!

Specs for context: replaced 24x Xeon Gold with 8x Ampere Mt. Jade. Same compute, 180W vs 420W.

one small ping for man...
#3

Bro wey thats wild kate

Mi finance guy he is crying too haha pero we locked rates in 2019 with HostHatch and now they try "renegotiation" wey. Contract say fixed bro! Wey estoy ready to fight them in court if necesario?

Armstrongvds tu ARM thing is good idea but migration cost itself is pain no?

declarative or death

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