Meta Platforms has extended the depreciation period for its AI infrastructure, increasing the useful life of certain servers and networking equipment to 5.5 years from the previous four to five years.

This adjustment, revealed in the company’s Jan. 29 earnings statement, is expected to reduce depreciation expenses by US$2.9 billion in 2025.

This accounts for nearly 4% of the company’s projected pre-tax profits for the year.

Meta plans to increase its capital expenditures by up to 75% this year to improve its AI technologies.

As a result, the financial impact of this depreciation change is expected to be more significant in 2026.

Chief financial officer Susan Li mentioned “efficiency gains” as the reason for extension, though experts note that such changes can lower accounting expenses in the short term.

The move aligns Meta with other tech giants adjusting depreciation schedules. Microsoft extended its server lifespan to six years in 2022, while Oracle did the same in 2023.

Amazon, however, shortened its equipment lifespan, increasing depreciation expenses.

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