) recently announced the expansion of its data center in Belgium
to meet the fast-growing demand for Internet usage and data
The expansion will involve an additional investment of €300
million (around $390 million). The data center is located in St.
Ghislain and Mons in Belgium and is considered to be highly
Earlier in 2010, Google had paid €250 million for its
purchase. The Belgium data center runs entirely on an advanced
evaporative cooling system that draws grey water from a nearby
industrial canal to reduce overall costs. Google's Hamina data
center in Finland uses a similar approach of using sea water from
the Bay of Finland to reduce its cooling costs.
The need for data center expansion is rising due to the
growing demand for cloud computing. The data centers comprise
computer servers that process everything from Internet searches
to email, inquiries to maps, videos and other services.
Google's investment to expand its data center comes as no
surprise given the need for more data-intensive services, such as
Google search, Gmail, Google+ and YouTube in Europe. Currently,
Google has 6 data centers in the U.S., 3 in Europe, and 3 under
construction in Asia. Recently, Google unveiled its first data
center project in South America, which will be located in
Gartner, an independent research firm in the U.S., estimates
datacenter hardware spending to cross $126.2 billion in 2015.
These technology warehouses are witnessing strength as video
streaming, smartphones and apps require hard drives to run
Google delivered strong fourth quarter gross revenues
(including TAC) of $14.4 billion, representing sequential and
year-over-year increases of 2.3% and 36.2%, respectively.
Excluding the $1.5 billion contribution from Motorola, revenues
were up 21.9% from the year-ago quarter.
Currently, Google retains a Zacks Rank #2 (Buy). Other stocks
in the sector that are performing well include
). While Yahoo holds a Zacks Rank #1 (Strong Buy), Intersil and
Priceline carry a Zacks Rank #2 (Buy).
GOOGLE INC-CL A (GOOG): Free Stock Analysis
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