The split shows where AI capex goes, mostly servers and GPUs, with buildings close behind, which informs expectations for compute capacity coming online.
Key takeaways · AI-distilled
Epoch reports roughly $68 billion of net additions to Microsoft’s gross physical assets in the second half of 2025, with IT equipment accounting for 57% of the increase and buildings for 39%.
Growth in gross property and equipment differs from capital spending: it reflects additions minus disposals, includes finance-leased assets, and can differ because assets are received before payment.
Microsoft’s filings do not reveal the precise AI share of this growth or granular category breakdowns. Faster IT equipment retirement also means changes in gross assets understate its share of total capex.
Epoch notes that Microsoft’s PP&E in accounts payable rose by about $16 billion during the period, helping explain why gross asset growth exceeded its standardized capex estimate by about $3 billion.
