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by missedthecue 17 days ago
But the parent comment was that one of the bigger costs in these data centers was the interest expense on the borrowed money. A restructuring removes or heavily reduces that amount.

The fiber laid during the dotcom bubble never paid back the investors or lenders, but it's still profitably connecting customers all these years later.

3 comments

It’s true once built the data center can operate right up to a financed data center value of zero. The investors will loose money but the costs of AI will go down as they do
Yup, that is the real economic benefit of bankruptcy - a reset.
Isn't something like 90% of the fiber laid during the dot com bubble still dark?