50.9k views
0 votes
Deploying your own datacenter is an example of CapEx.

a) True
b) False

User Stan Zeez
by
8.0k points

1 Answer

4 votes

Final answer:

Deploying your own datacenter is indeed an example of CapEx (Capital Expenditure) due to the significant upfront investment in physical infrastructure.

Step-by-step explanation:

Deploying your own datacenter is an example of CapEx, which stands for Capital Expenditure. This is true because setting up a datacenter involves significant upfront costs for physical infrastructure such as property, buildings, servers, and networking equipment. These costs are considered capital expenditures as they are investment in assets that have a utility over multiple years. In contrast, operational expenditures (OpEx) would include ongoing costs like electricity, maintenance, or rent that you pay for using a facility. CapEx typically requires a large amount of capital to be spent at once and is often used for investments that will improve a company's long-term performance.

User Roam
by
7.6k points