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Google increases spending on data centers

Google has nearly doubled its data center spending. It went from investing $239 million last quarter in capital investments to $476 million this quarter.

Although a capital investment is any physical asset that has long-term value, most of Google’s capital investments are IT-related. Large capital investments are often a sign of recovery. However, Google’s current expenditure figures are nothing compared to the $842 million it spent in Q1 2008. The company drastically cut back data center spending after the recession set in.

Other tech giants like Microsoft are also expanding their capital investment budgets. At this point, it is unclear where Google’s data center is going.

Photo | pzado

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