Google CapEx Spending Rebounds Slightly

Posted By Rich Miller On October 19, 2009 @ 9:29 am In Google | No Comments

Google (GOOG) invested $186 million on its data centers in the third quarter of 2009, ending a string of five consectuive quarters in which the company slashed its capital spending. But Google’s infrastructure costs remained just a fraction of what they were during its 2007 building boom, when it announced four new data centers.    

The second quarter capital expenditure (CapEx) total was up slightly from $139 million in the second quarter but tically lower than the company spent during the same period in 2006 ($492 million), 2007 ($453 million) and 2008 ($452 million). Here’s a look at the recent trend: 
 

google-capex-3q2009

  • 1Q 2006: $345 million
  • 2Q 2006: $699 million
  • 3Q 2006: $492 million
  • 4Q 2006: $367 million
  • 1Q 2007: $597 million
  • 2Q 2007: $575 million
  • 3Q 2007: $553 million
  • 4Q 2007: $678 million
  • 1Q 2008: $842 million
  • 2Q 2008: $698 million
  • 3Q 2008: $452 million
  • 4Q 2008:$368 million
  • 1Q 2009: $263 million
  • 2Q 2009: $139 million
  • 3Q 2009: $186 million

The capex “breather” has been enabled by the company’s building boom in 2007-08, during which it announced major data center construction projects in Lenoir, North Carolina [1]; Goose Creek, South Carolina [2]; Pryor, Oklahoma [3]and Council Bluffs, Iowa [4].

After the economic meltdown gripped Wall Street last fall, Google throttled back spending even further, opting to delay construction [5] of its data center in Pryor. Google continues to build in other markets. In March Google confirmed plans to build a major data center at a former paper mill in Finland [6], having paid $51 million in February to purchase the property.

About Rich Miller [7]

Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.


Article printed from Data Center Knowledge: http://www.datacenterknowledge.com

URL to article: http://www.datacenterknowledge.com/archives/2009/10/19/google-capex-spending-rebounds-slightly/

URLs in this post:

[1] Lenoir, North Carolina: http://www.datacenterknowledge.com/archives/2007/Jan/19/google_picks_nc_for_600m_data_center.html

[2] Goose Creek, South Carolina: http://www.datacenterknowledge.com/archives/2007/Apr/04/google_announces_600m_so_car_project.html

[3] Pryor, Oklahoma : http://www.datacenterknowledge.com/archives/2007/May/02/google_confirms_600m_oklahoma_project.html

[4] Council Bluffs, Iowa: http://www.datacenterknowledge.com/archives/2007/06/19/google-confirms-data-center-in-council-buffs-iowa/

[5] delay construction: http://www.datacenterknowledge.com/archives/2008/10/29/google-will-delay-oklahoma-data-center/

[6] paper mill in Finland: http://www.datacenterknowledge.com/archives/2009/03/04/google-confirms-data-center-in-finland/

[7] Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/

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