Google, Microsoft go on a building spree
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Last Update: 3:06 PM ET Jan 20, 2007
SAN FRANCISCO (MarketWatch) -- Rivals Google Inc. and Microsoft Corporation have each recently announced significant investments into building infrastructure vital to their Internet businesses.
Both companies are building new data centers, which are gigantic structures holding thousands of computers responsible for delivering Internet-based features to customers.
The latest investments represents the accelerating amount of money both companies are spending to support the public's growing hunger for Internet services, and to further their own business needs.
On Friday, Google (GOOG : google inc cl a
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GOOG489.75, +1.92, +0.4%) said it was to invest $600 million to build a data center in Lenoir, North Carolina, and create 210 jobs in one of the region's less-well-off areas.
The investment is a significant one for Google. The $600 million price tag exceeds Google's entire capital expenditures for its third quarter ending in October.
According to Gov. Mike Easley's office, Google has been promised up to $4.8 million in payments from the state if it creates 210 jobs and sustains that staffing level for the next 12 years.
"We are grateful for the support from the state," Google Global Operations Director Lloyd Taylor said in a press release announcing the new Google investment.
On Thursday, Google's rival Microsoft said it will invest $550 million to build a data center in San Antonio, Texas. In return for building the 470,000 square foot structure in their city, San Antonio's city council gave Microsoft tax breaks totaling $20.7 million.
The investment is also a sizeable one from Microsoft, representing about a fourth of its capital expenses in 2006.
Ben Charny is a MarketWatch reporter based in San Francisco. |
