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Data Center Frontier is edited by Rich Miller, the data center industry’s most experienced journalist. For more than 15 years, Rich has profiled the key role played by data centers in the Internet revolution. Meet the DCF team.
Hello,
I just downloaded and read your article titled “The Silver Lining In New Data Center Accounting Rules.”
While this was an excellently written article, I believe the author’s conclusion about accounting for datacenters is incorrect. It is incorrect because under the new lease accounting rules, data center co-locations would not be considered leases, because the even though the tenant controls access, they cannot “direct use” of the asset (they can only store servers there, they cannot store, for instance, paper files). Because the tenants are limited by what they can store in these centers, they do not have all the benefits of that asset, as such it is not deemed a lease.
I will be willing to work with you to write an article that would be relevant and accurate. Looking forward to hearing back. Thanks!
George Azih
Lease Accounting Expert