Don’t forget labor. You need to find talent to manage your little data center. And deal with it when it shits the bed at 4:12am on Christmas morning.
So toss in at least one SRE type person. Say $200k/year.
Since you only have one, they are gonna be on call 24/7, so assume you’ll burn them out after a year and a half and need to hire a new one....
Since redundancy is a thing, double that $350k. And 10pb is what they have now so double it again for 20pb. Add in $10k per rack for switches, routers, wires, etc.
So probably you are looking at a million dollars of capital plus labor to actually execute on this. And don’t forget the lead time might be a month to get the hardware and a week or two to install it. Plus all the configuration management that needs to be built up. Not to mention monitoring. So maybe a quarter of work just to have it functional.
I haven’t even factored in opportunity costs. What could this business be doing that adds more value than building out a little data center?
I dunno. Maybe it does make sense to manage your own hardware. But it helps to calculate the entire cost of ownership, not just the cost of the servers.