Internet giant Yahoo! Inc. ( YHOO ) recently
announced its plans to build a new data center in Lockport, NY to
meet the fast-growing demand for Internet usage and data storage
Yahoo is accelerating its investments in data centers in western
New York. The expansion will involve an additional investment of
$168 million and will create 115 additional positions.
Yahoo!'s new data center will be built on the Yahoo! Compute
Coop (YCC) architecture. The YCC is an energy-efficient data center
design that uses significantly less energy and water than
conventional data centers. The unique shape of the building allows
the company to use renewable energy like wind for cooling purposes.
This eliminates the need for expensive and energy-intensive
chillers to keep the servers cool.
Companies like Google Inc. ( GOOG ), Apple
Inc. ( AAPL ), as well as
other cloud computing providers are all trying to use renewable
energy to power their data centers, helping to contribute to
reductions in global warming, cut energy costs and comply with
The need for data center expansion is rising due to the growing
demand for cloud computing and the ever-increasing needs of
Internet users. The data centers include large banks with computer
servers that process everything from Internet searches to email,
videos and other services.
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 hard drives
needed to run them.
In the third quarter of fiscal 2012, Yahoo generated revenues of
$1.20 billion, which were down 1.3% sequentially and 1.2% year over
year. Traffic acquisition cost (TAC) was down 17.7% sequentially
and 22.2% from last year. Excluding these costs in all periods, net
revenue was essentially flat on a sequential basis and up 1.6% from
last year, in line with the consensus estimate.
Currently, Yahoo retains a Zacks Rank #3 (Hold). Another stock
that has been performing well and is worth considering is
Intersil Corp. ( ISIL ), which carries
a Zacks Rank #2 (Buy).APPLE INC (AAPL): Free Stock Analysis ReportGOOGLE INC-CL A (GOOG): Free Stock Analysis
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