The True Cost of Hosting an Enterprise LLM On-Prem in Singapore
Last updated: October 2026
The true cost of hosting an enterprise LLM on-prem is more than the GPU server. Plan for power, cooling, rack space, software, a spare, and the people who operate it, over 3–5 years. Hardware is often less than half of the total.
Megatron Technology supplies GPU servers and infrastructure in Singapore. This guide lists every cost line.
What makes up the cost of hosting an enterprise LLM on-prem?
| Cost line | What to plan for |
|---|---|
| GPU servers | Sized for model memory and users |
| Power | GPU servers draw much more power than standard servers |
| Cooling | Your room or colo must remove the heat |
| Rack space | In your office or a Singapore colo |
| Software | Inference software, operating system, monitoring |
| Spare capacity | A spare GPU or host for failures |
| Support | Hardware support for the full term |
| People | Staff time to operate and update the system |
Why does Singapore change the numbers?
Electricity and colo space are significant costs in Singapore.
Office server rooms often have limited power and cooling for GPU servers.
How do you build the estimate?
Size the hardware for your model and users.
Add 3–5 years of power, cooling and rack cost.
Add software and support.
Add staff time.
Compare with your projected SaaS cost.
Where can I read more?
Frequently asked questions
What is the biggest hidden cost of an on-prem LLM?
Power, cooling and staff time over 3–5 years are often missed.
Can we host an LLM in our office server room?
Check power and cooling first. Many office rooms cannot support GPU servers.
Do you publish GPU server prices?
No. Prices change often. We quote for your sizing.
How do you get a cost estimate for an on-prem LLM?
Send us your model, users and site. We size the hardware and list every cost line. Reach out to us for a quote if you need a price. Contact us.
Megatron Technology (est. 1990, UEN 199002644W) is an authorised Cisco Networking Partner and Managed Services Provider in Singapore, and a Fortinet reseller. Our 4 Cisco-certified engineers design, licence, procure, deploy and support Cisco Meraki, FortiGate and Cisco enterprise networks. Verify us on the Cisco Partner Locator. Contact: +65 6346 2001 · info@megatron.com.sg.