Property and Equipment

3 Months Ended

Mar. 31, 2023

Property, Plant and Equipment [Abstract]

Property and equipment, net consists of the following (in millions):


	March 31, 2023		December 31, 2022
Land	$	1,874	$	1,874
Servers and network assets	37,282		34,330
Buildings	30,882		27,720
Leasehold improvements	6,654		6,522
Equipment and other	5,831		5,642
Finance lease right-of-use assets	3,573		3,353
Construction in progress	25,039		25,052
Property and equipment, gross	111,135		104,493
Less: Accumulated depreciation	(26,979)		(24,975)
Property and equipment, net	$	84,156	$	79,518

Construction in progress includes costs mostly related to construction of data centers, network infrastructure, servers, and office facilities. As of March 31, 2023, construction in progress also includes $1.64 billion of servers and network assets components stored by our suppliers until required by our design manufacturers to fulfill certain purchase orders.

Depreciation expense on property and equipment was $2.48 billion and $2.12 billion for the three months ended March 31, 2023 and 2022, respectively. The majority of the property and equipment depreciation expense was from servers and network assets depreciation of $1.51 billion and $1.36 billion for the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, we capitalized $53 million of interest expense related to certain eligible construction in progress assets.

During the three months ended March 31, 2023, we recorded a $97 million impairment loss for leasehold improvements assets, as a part of our facilities consolidation restructuring efforts, see Note 3 — Restructuring.