CAPEX, or capital expenditure, is a significant aspect of various industries, particularly in energy and technology sectors. Here are some key points about CAPEX from the search results:
In the energy industry, CAPEX is crucial for developing infrastructure and resources. For example, ExxonMobil spent $23 billion on CAPEX in 2023 and made $36 billion in profit1.
Big Tech companies are now investing heavily in CAPEX, primarily for data centers. In 2024, tech giants are expected to spend around $300 billion on CAPEX, mainly for data center development1.
CAPEX investments in both energy and tech sectors are used to build competitive advantages or "moats." These large investments can lead to significant payoffs when allocated correctly1.
In the context of carbon capture projects, CAPEX plays a role in determining the economic feasibility of retrofitting existing industrial facilities. The capital costs tend to be lower for high-purity carbon sources compared to low-purity sources5.
CAPEX investments can also create jobs. In carbon capture projects, capital-heavy, low-purity sources tend to have more job-years associated with the project development phase than the operational phase5.