Underutilized Snowflake warehouses occur when a workload is assigned a larger warehouse size than necessary. For example, a workload that could efficiently execute on a Medium (M) warehouse may be running on a Large (L) or Extra Large (XL) warehouse.This leads to unnecessary credit consumption without a proportional benefit to performance. Underutilization is often driven by early provisioning decisions that were not later reassessed, or by a desire for marginal speed improvements that do not justify the increased operational cost.

If auto-suspend settings are too high, warehouses can sit idle and continue accruing unnecessary charges. Tightening the auto-suspend window ensures that the warehouse shuts down quickly once queries complete, minimizing credit waste while maintaining acceptable user experience (e.g., caching needs, interactive performance).

If no appropriate query timeout is configured, inefficient or runaway queries can execute for extended periods (up to the default 2-day system limit). For as long as the query is running, the warehouse will remain active and accrue costs. Proper timeout settings help terminate inefficient queries, free up compute capacity, and allow the warehouse to become idle sooner, making it eligible for auto-suspend once the inactivity timer is reached.

Many organizations assign separate Snowflake warehouses to individual business units or teams to simplify chargebacks and operational ownership. This often results in redundant and underutilized warehouses, as workloads frequently do not require the full capacity of even the smallest warehouse size.

By consolidating compatible workloads onto shared warehouses, organizations can maximize utilization, reduce idle runtime across the fleet, and significantly lower total credit consumption. Cost allocation can still be achieved using Query Billing Attribution.