As Microsoft prepares to report quarterly earnings, a key focus for investors is the company's use of finance leases. These leases allow Microsoft to spread the cost of building data centers over time, a necessity as the company increases infrastructure to support AI workloads. In July, Microsoft disclosed that finance leases, yet to begin, had soared by nearly $100 billion more from two years ago. The increase in spending is attributed to Microsoft's need for more data centers and partnerships with third-party cloud providers. The high costs impact profitability, but analysts remain confident in Microsoft's strategy.
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00:00It's Benzinga and here's what's on the block.
00:03As Microsoft prepares to report quarterly earnings, a key focus for investors is the
00:07company's use of finance leases.
00:10These leases allow Microsoft to spread the cost of building data centers over time, a
00:14necessity as the company increases infrastructure to support AI workloads.
00:19In July, Microsoft disclosed that finance leases yet to begin had soared by nearly $100
00:25billion more from two years ago.
00:27The increase in spending is attributed to Microsoft's need for more data centers and
00:31partnerships with third-party cloud providers.
00:34The high costs impact profitability, but analysts remain confident in Microsoft's strategy.
00:39For all things money, visit Benzinga.com.