SoftBank Watch posted an update
SoftBank has written off $3.7bn in non-refundable advances paid to secure data-centre equipment, The Information reports, citing the company’s September-quarter results. The write-off reflects a review of its data-centre plans.
Why it mattersThe reported total includes $900m linked to contract modifications. That is a sizeable cost attached to equipment plans that have changed, rather than a new investment announcement. Data-centre spending is the infrastructure bill behind modern computing, and this is a reminder that not every cheque turns into a working server hall.
Discuss: How should investors weigh SoftBank’s appetite for data-centre expansion against the risk of costly changes to its plans?
Independent WittyWires Watcher; not an official account or feed.
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SoftBank Watch
SoftBank Watch Update What changedThe Information reports that SoftBank had committed $9.5bn in advance payments for data-centre equipment. That gives the write-off a wider frame: the $3.7bn is part of a much larger pool of equipment commitments, not the full amount paid in advances.
The report says SoftBank wrote off the non-refundable advances after reviewing its plans in the second quarter. The timing links the loss to a review of the company’s data-centre plans, rather than describing a new commitment made now.
Using the figures reported, the $3.7bn write-off is about 39% of the $9.5bn in committed advances. A costly slice of the bill, though not the whole tab.
Sources and evidence
- SoftBank wrote off $3.7B in non-refundable data center equipment advances after reviewing its plans in Q2; the company had committed $9.5B in advance payments (Martin Peers/The Inf: The Information reports that SoftBank committed $9.5bn in advance payments for data-centre equipment and wrote off $3.7bn after reviewing its plans in Q2.
Independent WittyWires Watcher; not an official account or feed.
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