Documentation

AI Datacenter Platform

Financial Calculators

The AI Datacenter Platform provides specialized financial calculators designed for AI datacenter project analysis. These calculators help evaluate project feasibility, compare financing options, and optimize investment returns.

Available Calculators

Internal Rate of Return (IRR)

Calculate the internal rate of return for AI datacenter investments based on cash flows, project timeline, and investment structure.

Key Inputs:

  • Initial capital expenditure
  • Operating expenses (OPEX)
  • Revenue projections
  • Project timeline
  • Terminal value

Use Case: Evaluating overall project profitability and comparing investment opportunities.

Debt Service Coverage Ratio (DSCR)

Calculate the debt service coverage ratio to assess a project's ability to service debt obligations from operating cash flow.

Key Inputs:

  • Net Operating Income (NOI)
  • Annual debt service
  • Interest rates
  • Loan terms

Use Case: Determining borrowing capacity and loan covenant compliance.

Levelized Cost of Compute (LCOC)

Calculate the levelized cost of compute for AI workloads, incorporating hardware costs, power consumption, and operational efficiency.

Key Inputs:

  • GPU hardware costs
  • Power costs per kWh
  • Hardware utilization rates
  • Operational efficiency
  • Maintenance costs

Use Case: Comparing compute costs across different hardware configurations and locations.

Lease vs. Own Analysis

Compare the financial implications of leasing versus owning AI infrastructure, including tax considerations and flexibility benefits.

Key Inputs:

  • Purchase price vs. lease rates
  • Residual value estimates
  • Depreciation schedules
  • Tax implications
  • Technology refresh cycles

Use Case: Making strategic decisions about infrastructure acquisition models.

Power-Adjusted Yield (PAY)

Calculate power-adjusted yield that incorporates energy availability, power costs, and curtailment risk into traditional yield calculations.

Key Inputs:

  • Base yield projections
  • Power availability factors
  • Energy cost forecasts
  • Curtailment probability
  • Power purchase agreements

Use Case: Assessing project returns with power risk factors incorporated.

Calculation Methodologies

Internal Rate of Return (IRR)

IRR is calculated as the discount rate that makes the net present value (NPV) of all cash flows equal to zero. For AI datacenter projects, we consider:

NPV = Σ(CFt / (1 + IRR)^t) - Initial Investment = 0

Where:
- CFt = Cash flow in period t
- t = Time period
- Initial Investment = Upfront capital expenditure

Special Considerations for AI Datacenters:

  • Hardware refresh cycles (typically 3-5 years for GPUs)
  • Power cost escalation over project life
  • Technology obsolescence risk
  • Revenue volatility from AI demand fluctuations

Debt Service Coverage Ratio (DSCR)

DSCR = Net Operating Income / Annual Debt Service

Net Operating Income = Revenue - Operating Expenses
Annual Debt Service = Principal + Interest Payments

AI Datacenter Specifics:

  • Operating expenses include significant power costs
  • Revenue may be usage-based or fixed contracts
  • Seasonal variations in power costs affect NOI

Levelized Cost of Compute (LCOC)

LCOC = (Total Lifetime Cost) / (Total Compute Output)

Total Lifetime Cost = CAPEX + OPEX - Residual Value
Total Compute Output = Σ(TPUs × Utilization × Efficiency)

Key Components:

  • CAPEX: Hardware acquisition, installation, facility upgrades
  • OPEX: Power, cooling, maintenance, staff, software licenses
  • Utilization: Average GPU utilization over lifetime
  • Efficiency: Performance per watt and operational efficiency

Lease vs. Own Analysis

Net Present Value (Lease) = Σ(Lease Payments + Tax Benefits)
Net Present Value (Own) = Purchase Price - Tax Benefits - Residual Value

Decision Rule: Choose option with lower net present cost

Factors to Consider:

  • Flexibility: Leasing offers easier hardware upgrades
  • Balance Sheet: Leasing may be off-balance sheet financing
  • Tax: Ownership allows depreciation deductions
  • Risk: Ownership transfers technology obsolescence risk

Power-Adjusted Yield (PAY)

PAY = (Adjusted Return) / (Adjusted Investment)

Adjusted Return = Base Return - Power Risk Premium
Adjusted Investment = Base Investment + Power Mitigation Costs

Power Risk Premium = f(Curtailment Risk, Power Volatility)

Power Risk Components:

  • Curtailment Risk: Probability of power being unavailable
  • Power Cost Volatility: Expected variation in power prices
  • Carbon Costs: Potential carbon pricing impacts
  • Grid Reliability: Local grid stability and outage risks

Using the Calculators

Step-by-Step Process

  1. Gather Input Data: Collect all relevant financial and operational data
  2. Select Calculator: Choose the appropriate calculator for your analysis
  3. Input Parameters: Enter your project-specific data
  4. Review Assumptions: Validate default assumptions for your context
  5. Run Calculations: Generate results and sensitivity analyses
  6. Interpret Results: Understand the implications for your project
  7. Scenario Analysis: Test different assumptions and sensitivities

Data Sources

Recommended data sources for calculator inputs:

  • Power Costs: Local utility tariffs, PPAs, our Curtailment Stress Scores
  • Hardware Costs: Vendor quotes, market indices, our GPU Lease Rate Index
  • Construction Costs: Local contractors, market benchmarks
  • Revenue Projections: Market demand studies, customer contracts

Best Practices

  • Conservative Assumptions: Use conservative estimates for revenue and optimistic for costs
  • Sensitivity Analysis: Always test how changes in key assumptions affect results
  • Market Conditions: Consider current market cycles and future expectations
  • Risk Premiums: Adjust returns for technology and market risks
  • Professional Advice: Consult with financial advisors for major investment decisions

API Integration

All calculators are available via API for integration into your workflows:

POST /api/calculators/irr
POST /api/calculators/dscr
POST /api/calculators/lcoc
POST /api/calculators/lease-vs-own
POST /api/calculators/pay

See the API documentation for detailed request/response formats.

Important: These calculators provide estimates based on the inputs and assumptions provided. They should be used as analytical tools to support decision-making, not as definitive financial advice. Always consult with qualified financial professionals for investment decisions.