FAQ

Technical Equipment of the Servers

How are the servers equipped technically?
All GAINFARM servers are equipped with high-quality components, including powerful processors, sufficient RAM, and fast storage solutions. When you invest with us, you are always investing in top-of-the-line servers, ensuring demand from your future customers. These high-end machines go beyond standard servers, featuring 12 parallel graphics cards in the most booked configuration, dual processors with 64 cores each, and massive memory capacity. Multiple redundant power supplies ensure consistent performance even under peak loads. The specific components may vary depending on the manufacturer and model, and they will be offered to you individually. We exclusively work with reputable manufacturers like NVIDIA to ensure that the servers reliably meet the high-performance requirements.

Rental Conditions and Operation

Do I need technical knowledge to operate an AI server?
No, you do not need technical know-how. GAINFARM handles all regular maintenance tasks for you, following the manufacturer's recommendations. This includes firmware and software updates, hardware component checks, as well as cleaning or replacement work. The intervals for these tasks depend on the specific requirements of the components to ensure optimal performance and uptime for the servers. Every customer who uses artificial intelligence on your servers expects absolute data security. Therefore, you do not need to provide backup strategies for your customers, as you, as the operator, cannot access the AI processes running on your servers.
How long is the typical rental period for a server?
The rental duration varies for each order, depending on the needs and technological setup of the servers. Initially, customers often use shorter rental periods to evaluate the integration, performance, stability, and security of the servers. During this phase, typically small amounts of data are processed. After a successful test run, they then integrate the servers into data-intensive AI processes and request significantly longer booking times.
Do I need to find a new tenant after the rental period expires?
Not at all. The management of server re-rental is our responsibility. GAINFARM takes care of continuously finding new users for your servers to ensure continuous utilization and optimal amortization of your investment. This allows you to focus on your core business.
Do I have to expect additional costs for electricity or maintenance?
The calculated returns already include all operational expenses, including electricity, maintenance, and other operating costs. However, energy consumption is an important factor in the operating cost calculation, which is why we operate our data centers in energy-friendly locations such as the USA and Norway. The monthly electricity costs depend on the utilization of the respective server. The average electricity price per kilowatt-hour is currently 0.115 euros in the USA and 0.074 euros in Norway - significantly lower than in Europe. Depending on the server's utilization and the current kilowatt-hour price, your monthly electricity costs - depending on the location - are estimated to be between 250 and 450 euros. These expenses have already been taken into account in our return examples.
After how many years will an upgrade of my servers be necessary?
The better your server, the higher the chances of rental. With GAINFARM, you exclusively purchase high-performance computers. Based on the rapid evolution of information technology, we recommend considering a hardware upgrade within a 5 to 7-year cycle. GAINFARM performs regular performance analysis for you and will inform you promptly about potential upgrade requirements.
Who bears the costs for server upgrades when the natural operating cycle is reached - me or Gainfarm?
As an investor, you acquire your own servers, and you are responsible for financing server upgrades. However, don't worry: Our long-term experience shows that upgrades are currently only necessary after 5 to 7 years when the servers have already generated considerable returns. The costs vary depending on the type of required hardware components. The complete replacement of graphics cards can cost between twenty and thirty thousand euros, taking into account market price fluctuations. However, after that, you will enter a new return cycle that quickly amortizes these investments.
Are defective parts automatically repaired, and what are the costs?
In case of hardware defects, the repair costs vary depending on the type and extent of the defect and the required replacement parts. We provide you with a detailed cost estimate to ensure fast and effective repairs.
What happens to my servers after a operating period of 5 to 7 years?
The server performance and thus the return on investment can decrease over time. After reaching the operating period of 5 to 7 years, we will assist you in deciding whether an upgrade is economically viable or if decommissioning and environmentally friendly recycling are appropriate. In most cases, our customers choose a hardware upgrade.

Yields & Returns

Can the return on investment be guaranteed?
We cannot guarantee the return on investment as the revenue of the servers can fluctuate and decrease after a longer operating time. The returns can vary and are not guaranteed. It will be necessary to reinvest in new servers after a few years to maintain the returns. However, we have seen periods in the past with high returns above the average. Please note that a guarantee in this context would be unprofessional.
Can the return on investment increase due to demand development?
Yes. Depending on the continuously growing demand for AI, an increase in the return on investment is not unlikely. Higher rental income per server unit or an increase in customers can contribute to positive revenue development. However, the return on investment depends on the overall market development and cannot be guaranteed.
What are the general predictions for the AI business?
The outlook for AI applications is extremely robust and indicates a long-term return on investment. We constantly monitor market dynamics and technological advancements, and expect the demand for AI-based services to continue to rise rapidly. This is supported by numerous independent studies. The demand for AI services is expected to revolutionize various industries due to its benefits for business operations. Advances in areas such as deep learning and big data further drive AI development and bring significant implications, such as task automation and improved decision-making. Despite the growth potential, ethical concerns, data privacy, regulatory issues, and skills shortage pose challenges that could impact the growth of the AI market. Continuous market monitoring is therefore important to adapt business strategies to dynamic AI trends.

Locations

Where will my AI servers be operated?
Your AI servers will be deployed and operated in our data centers in Norway. Our infrastructure provides optimal conditions for smooth operation and maximum performance. The locations have been carefully chosen to ensure a secure and reliable environment for operation. We place great importance on adhering to high-security standards, redundant power supply, efficient cooling, and scalable infrastructure to meet the ever-growing demands of customers.
What are the advantages of the Norway location?
Our data centers in Norway offer several advantages:
1. Renewable energy: Norway has extensive resources of renewable energy, particularly hydro and wind power. This allows us to operate our data centers with sustainable energy, which is not only environmentally friendly but potentially offers lower electricity costs compared to fossil-based energy sources.
2. Low cooling requirements: Due to the cool Norwegian climate, we can efficiently cool our data centers.
3. Political stability and reliable infrastructure: Norway is politically stable and has a reliable infrastructure, which is crucial for the operation of our data centers.
4. Data privacy and security: Norway has strict data protection laws and advanced security measures to ensure data security. This is an important factor for us as a company that values the protection of sensitive data.
5. Norway is part of the European Economic Area (EEA), which makes it highly attractive for businesses and investors.

Overall, Norway offers significant advantages for the operation of our data centers in terms of sustainability, energy efficiency, infrastructure, business environment, and data privacy. These factors make Norway a highly attractive location for us and our customers.

Other Questions

Why isn't everyone doing it if it's so great?
Setting up an AI server farm requires in-depth knowledge, not only about the design and operation, but also about security, marketing, configuration, and server integration. Once a facility is operational, continuous power supply, cooling, and maintenance need to be ensured to achieve optimal server performance. This is where GAINFARM's success lies: we offer companies the opportunity to conveniently invest in AI servers without requiring extensive know-how. We closely monitor developments in the AI market to equip your servers with competitive and profitable capabilities.
Is it possible to operate the servers on-site?
The servers are operated by us in our own data centers to ensure a professional infrastructure and reliable support. We take care of the setup, maintenance, and security of the servers, allowing you to focus on your core business. Operating the servers on-site in Europe would not be cost-effective for you, especially considering energy costs. Therefore, as a matter of conviction, we do not sell just the hardware but offer you a solid full-service investment.
Do I benefit from similar depreciation models in Austria?
The depreciation rules can vary from country to country. In Germany, a depreciation period of 12 months is common. For specific information regarding Austria, we recommend consulting your tax advisor or the relevant authority.
Is the webinar also available in English?
Currently, we offer our webinars exclusively in German. An expansion of our offerings to English is planned for the 2nd quarter of 2024. Until then, we are available for personal conversations in English to ensure a VIP experience for you.
How long is the warranty on the graphics cards?
The installed graphics cards are covered by a manufacturer's warranty of two years. During this period, both repairs and replacements in case of defects are covered without additional costs for you.
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