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Question regarding azure cloud fundamentals

ghulam muhammad 50 Reputation points
2023-09-12T16:58:10.2266667+00:00

Is paying for electricity for your own data center an example of CapEx or OpEx ??

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  1. Wadah Elsiddig 0 Reputation points
    2023-09-12T17:27:45.4833333+00:00

    Paying for electricity for your own data center is typically considered an example of Operational Expenditure (OpEx), not Capital Expenditure (CapEx).

    Operational Expenditure are operational expenditures are ongoing, day-to-day costs incurred to run a business or maintain its assets.

    Electricity bills, rent or lease payments, salaries of staff, and other recurring expenses fall under OpEx.

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