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> Data centers are NOT real estate. Buildings and power lines usually last 30-50 years. GPUs become obsolete in 5 years. Data centers are real estate. One of t
by toast0 3mo ago
> Data centers are NOT real estate. Buildings and power lines usually last 30-50 years. GPUs become obsolete in 5 years.
Data centers are real estate. One of the big players in carrier neutral data centers even calls themselves Digitial Realty.
The contents of the DC is not real estate. But neither is the an office or a house or a warehouse.
- skywhopper 3mo agoThe “contents” represent the majority of the cost and meaningful functionality of what we call a “datacenter”. Those contents will not last for “real estate” debt timelines.
- underlipton 3mo agoChances they're planning on replacing personal, local compute with time-sharing on data center hardware that's too outmoded for AI...? You know, since they sunk the consumer component market for the next half-decade.
- chaos_emergent 3mo agoRight but their payback period is insanely short - a $5M GB200 NVL72 cluster is expected to generate $75M in revenue over 3 years for inference providers. That's a 3 month payback period. AND - they're operating well past their estimated service lifetime.