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Building a datacenter infrastructure is OpEx.
a) TRUE
b) FALSE

User Whitecat
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1 Answer

3 votes

Final answer:

Building a datacenter infrastructure is typically considered Capital Expenditure (CapEx) rather than Operating Expenditure (OpEx), as it involves upfront costs for long-term benefit. Ongoing operations and maintenance of a datacenter fall under OpEx. Hence, the statement is FALSE.

Step-by-step explanation:

Whether building a datacenter infrastructure is considered a Capital Expenditure (CapEx) or an Operating Expenditure (OpEx) depends on how the company chooses to spend money on the infrastructure. Typically, building the physical infrastructure of a datacenter, including the purchase of land, construction, and the initial outfitting with servers, storage, and networking equipment is considered CapEx, as these are upfront expenses that benefit the company over a long period. However, some aspects of running a datacenter, such as ongoing maintenance, utility costs, and regular upgrades can fall under OpEx. These terms represent the spending model for accounting and budgeting within a business. Therefore, the statement that building a datacenter infrastructure is OpEx is FALSE, as the initial build is usually CapEx, while ongoing operations and maintenance are considered OpEx.

User Chipmunk
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