Some of the world’s biggest cloud computing firms want to make millions of servers last longer — doing so will save them billions of dollars every year

Some of the world’s largest cloud computing firms, including Alphabet, Amazon, and Cloudflare, have found a way to save billions by extending the lifespan of their servers – a move expected to significantly reduce depreciation costs, increase net income, and contribute to their bottom lines.

Alphabet, Google’s parent company, started this trend in 2021 by extending the lifespan of its servers and networking equipment. By 2023, the company decided that both types of hardware could last six years before needing to be replaced. This decision led to the company saving $3.9 billion in depreciation and increasing net income by $3.0 billion last year.