Google, according to a report from the Datacenter Dynamics resource, intends to increase the service life of servers and some network equipment in its data centers by about one and a half times. This is expected to save billions of dollars annually in data center infrastructure upgrades.
Persistent supply chain issues and macroeconomic challenges are forcing hyperscalers to look for ways to cut costs. For example, Meta* recently announced a series of initiatives that will help reduce data center costs by $4 billion, including a complete overhaul of the data center architecture. In addition, the company announced the extension of the service life of servers to five years instead of the previous four and a half, which will save $1.5 billion.
Google has now announced similar measures. The company said it completed a life cycle assessment of its equipment in January of this year and concluded that it could extend its life to six years. Previously, it was used for four years. The latest TrendForce report says that Amazon, Google, Meta* and Microsoft will reduce server purchases in 2023. It also reports that solutions based on the latest Intel Xeon Sapphire Rapids and AMD EPYC Genoa did not satisfy Google in terms of TCO.
“We expect that [изменение] will result in a reduction in depreciation of approximately $3.4 billion for fiscal year 2023 for assets in operation as of December 31, 2022,” Alphabet, the parent holding of Google, said in a financial report. Microsoft announced an increase in the service life of servers and network equipment from four to six years in July last year, which will save $3.3 billion. AWS operates its servers for five to six years. It should be noted that even before 2020, all four hyperscalers updated equipment roughly every three years.
* Included in the list of public associations and religious organizations in respect of which the court made a final decision to liquidate or ban activities on the grounds provided for by Federal Law No. 114-FZ of July 25, 2002 “On countering extremist activity.”
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