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Data Glossary

Compute Cost

What Snowflake Compute Cost Means?

Compute cost in Snowflake refers to the credits consumed by Virtual Warehouses when they execute work.

Work includes:

  • Running SQL queries
  • Loading and unloading data
  • Refreshing materialized views
  • Executing tasks and streams
  • Powering BI dashboards and automated jobs

Storage sits separately. Network egress sits separately.
Compute cost moves fast, scales instantly, and usually causes budget surprises.

Because Snowflake decouples compute from storage, teams spin warehouses up freely. And because billing runs per-second, cost quietly accumulates across teams, tools, and forgotten workloads.

How Snowflake Charges for Compute

Snowflake charges compute usage in credits per second, with a 60-second minimum per warehouse start.

The actual cost depends on three variables:

  1. Warehouse size
  2. Runtime
  3. Concurrency and clustering behavior

 

Warehouse Size and Credit Rates

Each warehouse size consumes credits at a fixed hourly rate:

Warehouse Size Credit per Hour
X Small 1
Small 2
Medium 4
Large 8
X-Large 16
2X-Large 32
3X-Large 64
4X-Large 128

 

A Large warehouse running for 10 minutes consumes roughly 1.33 credits.
Multiply that by dozens of dashboards and hundreds of queries, and cost escalates fast.

What Actually Drives Compute Cost

 

Query Behavior

Long-running queries, poor joins, missing filters, and large scans inflate runtime.

Concurrency adds pressure. When multiple queries run together, Snowflake may spin up additional clusters if multi-cluster mode stays enabled.

Warehouse Configuration

Auto-suspend delays, oversized warehouses, and always-on BI warehouses create silent spend.

Multi-cluster settings amplify cost during spikes, even when spikes come from inefficient queries.

BI and Reverse ETL Tools

Dashboards polling every minute, background syncs, and automated extracts generate constant compute usage.

Most teams underestimate how much BI traffic costs until finance asks.

Tasks, Streams, and Background Jobs

Scheduled tasks often run more frequently than needed. Streams accumulate changes that trigger downstream work. Each execution burns compute.

Common Compute Cost Traps

 

Oversized Warehouses

Teams default to Medium or Large warehouses for safety. Query speed improves slightly. Cost multiplies.

Always-On Warehouses

Auto-suspend set too high or disabled entirely leads to idle warehouses billing continuously.

Hidden BI Load

Dashboards refresh whether anyone looks at them or not. Each refresh runs queries.

Orphaned Workloads

Deprecated pipelines, unused tables, and abandoned experiments keep running quietly.

How to Measure Compute Cost in Snowflake

Snowflake exposes compute usage through:

  • WAREHOUSE_METERING_HISTORY
  • QUERY_HISTORY
  • TASK_HISTORY
  • METERING_HISTORY

These views show credits consumed, execution times, and warehouse activity.

But raw data alone does not answer:

  • Which team caused the cost
  • Which dashboard triggered the query
  • Which business outcome justified the spend

That gap forces manual analysis and guesswork.

Compute Cost vs Performance Tradeoffs

Smaller warehouses reduce cost but may increase queueing.

Larger warehouses reduce runtime but raise per-second spend.

Multi-cluster mode improves concurrency but multiplies cost during peaks.

The goal is not maximum speed. The goal is predictable performance at controlled cost.

Right-sizing requires understanding:

  • Query impact
  • User behavior
  • Business-critical SLAs

Best Practices for Reducing Compute Cost

 

Right-Size Warehouses

Start small. Scale up only where latency truly matters.

Aggressive Auto-Suspend

Set auto-suspend to 60 seconds or less for non-critical workloads.

Separate Workloads

Isolate BI, ETL, ad-hoc analysis, and data science into separate warehouses.

Monitor Query Patterns

Identify queries that scan excessive data or run too frequently.

Reduce Refresh Frequency

Many dashboards update far more often than users consume.

Why Compute Cost Becomes a FinOps Problem

Snowflake invoices aggregate credits at the account level.

Finance sees totals. Engineering sees queries. Leadership sees surprises.

Without cost attribution:

  • Engineers optimize blind
  • Managers argue about blame
  • Finance enforces blunt limits

Compute cost needs ownership, context, and accountability.

How SeemoreData Fits In

SeemoreData adds cost context to Snowflake compute usage.

Teams use SeemoreData to:

  • Attribute compute cost to queries, dashboards, users, and teams
  • Detect anomalies in warehouse behavior
  • Identify idle, oversized, or misused warehouses
  • Understand the cost impact of performance changes before applying them

Instead of reacting to invoices, teams manage compute proactively.

Compute Cost vs Storage Cost

Compute:

  • Variable
  • Spiky
  • User-driven
  • Optimization-heavy

Storage:

  • Predictable
  • Gradual
  • Easier to forecast

Most Snowflake savings come from compute, not storage.

Key Takeaways

  • Compute cost equals credits consumed by warehouses
  • Every query, task, and dashboard contributes
  • Misconfiguration causes silent waste
  • Visibility determines control
  • Attribution turns cost from a problem into a decision

 

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