), the world's most popular Internet search engine provider, has
announced that it will build a data center in Iowa. The search
engine giant will invest $200 million for the construction of
this project in Council Bluffs, Iowa.
Google has been present in Iowa since 2007 and has invested
more than $1.0 billion in the state. The company has accelerated
its investments and is now investing in data centers.
Previously, it had invested $75.0 million in a 50MW wind farm
Investments in rural areas like Iowa and Nevada make sense as
these states offer state tax incentives, government incentives,
low-cost power, cheap land and good predictable weather. All
these factors attract the IT stalwarts to invest at a cheaper
) too has a data center in the state of Iowa.
Google has been steadily acquiring huge tracts of land in Iowa
and now owns 1,000 acres of real estate through various
acquisitions made over a period of time. The acquisition of cheap
land was a smart move, as it is now building a new data center on
that property at a much lower cost.
The need for data center expansion is rising due to the
growing demand for cloud computing and the ever-increasing needs
of Internet users. Google has 6 data centers in the U.S., 3 in
Europe, 3 under construction in Asia and plans to build another
one in Chile.
The U.S. independent research firm, Gartner predicts that
datacenter hardware spending will most likely cross $126.2
billion in 2015. These technology warehouses are witnessing
strength, as video streaming, smartphones and apps are boosting
demand for the hard drives needed to run them.
In the third quarter of fiscal 2012, Google's gross revenue
reached a record $14.10 billion, up 28.6% sequentially and 45.1%
year over year.
Both Google and Microsoft retain the Zacks #3 Rank, which
translates into a short-term 'Hold' rating.
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