Google Admits Depreciation Costs are Soaring Amid Furious Bit Barn Build
Google is feeling the pinch as its massive investment in datacentres is starting to hit the balance sheet, with soaring depreciation costs. Despite this, the tech giant is determined to push ahead, planning to invest a whopping $75 billion in 2025 to meet rising demand.
Key Points
- Google’s CFO revealed rising depreciation costs linked to their mammoth datacentre investments.
- The company plans to invest $75 billion in capital expenditure this year to address capacity demands.
- Despite owning 135 datacentres globally, Google still struggles to meet customer demand.
- The 2024 CapEx was between $50 billion and $55 billion, indicating a significant increase this year.
- Depreciation has seen a 31% year-on-year increase, a trend expected to continue.
Why should I read this?
If you’re in the tech space or just curious about the future of cloud computing, this article is a must-read. Google’s challenges and responses are pivotal as they give insight into how the major players are tackling skyrocketing demands and costs in an increasingly competitive environment.