Daniel Romero(@HyperTechInvest):WSJ reports that hyperscalers have 4x as much in off-balance-sheet commitments as in recognized liabilities This is the reason: For leases, recognition occurs when the facility is made available for use. As long as the data center it's in construction, it's not recognized Purchase commitments also remain off the balance sheet until the goods or services are delivered For equipment, the companies record the asset and either pays cash or recognizes a payable upon delivery For energy, cloud capacity, content and other services, the cost is recognized as the service is received rather than as a capital asset

Daniel Romero

@HyperTechInvest

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Daniel Romero@HyperTechInvest

2026.08.17 07:05

WSJ reports that hyperscalers have 4x as much in off-balance-sheet commitments as in recognized liabilities This is the reason: For leases, recognition occurs when the facility is made available for use. As long as the data center it's in construction, it's not recognized Purchase commitments also remain off the balance sheet until the goods or services are delivered For equipment, the companies record the asset and either pays cash or recognizes a payable upon delivery For energy, cloud capacity, content and other services, the cost is recognized as the service is received rather than as a capital asset