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

Dedicated servers seen from behind.
(Image credit: Pixabay)

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.

These savings will go towards Alphabet's investment in technical infrastructure, particularly servers and data centers, to support the exponential growth of AI-powered services.

Amazon and Cloudflare too

Like Alphabet, Amazon also recently completed a "useful life study" for its servers, deciding to extend their working life from five to six years. This change is predicted to contribute $900 million to net income in Q1 of 2024 alone.

Cloudflare followed a similar path, extending the useful life of its service and network equipment from four to five years starting in 2024. This decision is expected to result in a modest impact of $20 million.

Tech behemoths are facing increasing costs from investing in AI and technical infrastructure, so any savings that can made elsewhere are vital. The move to extend the life of servers isn't just a cost cutting exercise however, it also reflects the continuous advancements in hardware technology and improvements in data center designs.

More from TechRadar Pro

TOPICS
Wayne Williams
Editor

Wayne Williams is a freelancer writing news for TechRadar Pro. He has been writing about computers, technology, and the web for 30 years. In that time he wrote for most of the UK’s PC magazines, and launched, edited and published a number of them too.

Read more
A person standing in front of a rack of servers inside a data center
Microsoft joins scientists in finding a way to reuse decommissioned servers
Glowing server racks inside a data center.
The dirty little secret about AI hardware that you should know about: server vendors have to wrestle with wafer thin margins and bigger customers
Data center racks with cables and servers
Spending on data centers hit a high in 2024, but it won't last
A person standing in front of a rack of servers inside a data center
Changing a few lines of code in Linux could apparently save hyperscalers billions, research claims, but I am not convinced
Digital clouds against a blue background.
Spending on cloud infrastructure could actually fall in 2025
Amazon Web Services CEO Andy Jassy
Amazon wants to spend $100 billion this year for ‘once in a lifetime' AI opportunity
Latest in Pro
Eurocom Raptor X18
At $15,000, this massive 256GB RAM laptop makes Apple's MacBook Pro look affordable, tiny and very, very slow
Squarespace
Build a website for less with 10% off Squarespace subscriptions
An American flag flying outside the US Capitol building against a blue sky
The FCC is creating a security council to bolster US defenses against cyberattacks
UK Prime Minister Sir Kier Starmer
UK PM says AI should soon replace civil servants
Image depicting hands typing on a keyboard, with phishing hooks holding files, passwords and credit cards.
Microsoft warns about a new phishing campaign impersonating Booking.com
Ransomware
Microsoft uncovers sleuthy new XCSSET MacOS malware campaign
Latest in News
An image of the Samsung Galaxy S25 Ultra from a hands-on event
Samsung Galaxy S26 Ultra could resurrect an intriguing camera feature
Eurocom Raptor X18
At $15,000, this massive 256GB RAM laptop makes Apple's MacBook Pro look affordable, tiny and very, very slow
Cristin Milioti in Black Mirror season 7
Netflix launches trailer for Black Mirror season 7, giving us a look at its first-ever sequel episode and an unexpected returning character
A graphic of the PC Gaming Show
Get ready for a bounty of PC games on June 8, as the PC Gaming show is back
A close up of The Daily podcast from Pocket Casts' web page
‘Podcasting shouldn’t be locked behind walled gardens’: Pocket Casts slams Spotify and makes its web player free to all
A smartphone on a sofa showing the WhatsApp, Telegram and Signal apps
Forget AI – WhatsApp is planning a simple messages feature that could be its most useful upgrade in years