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.
Snowflake charges based on the size and active runtime of a warehouse. Larger warehouses consume more credits per second of operation compared to smaller sizes, and relevant size should be used depending on workload requirements.