"What’s a #datacenter made of?? There are 3 main components; the #building and land at roughly a quarter of the cost, all the #powersystems, wiring, cooling, racking, etc. at about 40% of the cost, and then the #GPUs themselves at about 35% of the cost. I’m assuming that the building depreciates over 30 years, the chips are obsolete in 3 to 5 years, and then the other stuff lasts about 10 years on average. Call it a 10-year #depreciation curve on average for an AI datacenter. Which leads you to the first shocking revelation; the #AI datacenters to be built in 2025 will suffer $40 billion of annual depreciation, while generating somewhere between $15 and $20 billion of revenue. The depreciation is literally twice what the revenue is."
V. @elilla
https://pracap.com/global-crossing-reborn/