Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

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


	December 31,
	2023		2022
Land	$	2,080	$	1,874
Servers and network assets	46,838		34,330
Buildings	37,961		27,720
Leasehold improvements	6,972		6,522
Equipment and other	7,416		5,642
Finance lease right-of-use assets	4,185		3,353
Construction in progress	24,269		25,052
Property and equipment, gross	129,721		104,493
Less: Accumulated depreciation	(33,134)		(24,975)
Property and equipment, net	$	96,587	$	79,518

Construction in progress includes costs mostly related to construction of data centers, network infrastructure and servers. As of December 31, 2023, and 2022, construction in progress also included $1.40 billion and $2.18 billion of servers and network assets components stored by our suppliers until required by our design manufacturers to fulfill certain purchase orders, respectively.

Depreciation expense on property and equipment was $11.02 billion, $8.50 billion, and $7.56 billion for the years ended December 31, 2023, 2022, and 2021, respectively. Within property and equipment, our servers and network assets depreciation expenses were $7.32 billion, $5.29 billion, and $4.94 billion for the years ended December 31, 2023, 2022, and 2021, respectively. During the year ended December 31, 2023, we capitalized $283 million of interest expense related to certain eligible construction in progress assets.

During the years ended December 31, 2023, and 2022, we recorded $671 million and $508 million of impairment losses mostly for leasehold improvements assets as part of our facilities consolidation restructuring efforts, respectively. For additional information, see Note 3 — Restructuring.