Google Data Center Spending Up Slightly

Posted By Rich Miller On April 16, 2010 @ 9:24 am In Google | 1 Comment

Google (GOOG) continues to invest in its data centers, but there’s no sign of an imminent return the huge spending seen in 2007 and 2008. Google invested $239 million in capital spending on its IT infrastructure in the first quarter of 2010, a slight uptick from the $221 million it spent in the fourth quarter. The company’s capital expenditures (CapEx) have trended modestly higher over the last four quarters, but remain at about a quarter of what the company spent at the height of its data center building program. Here’s a look at the recent trend in Google’s capital expenditures:

[1]

  • 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
  • 4Q2009: $221 million
  • 1Q2010: $239 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 [2]; Goose Creek, South Carolina [3]; Pryor, Oklahoma [4]and Council Bluffs, Iowa [5]. Google has not announced any new data center builds in the U.S. since June 2007, and confirmed just one international project in 2009 in Hamina, Finland [6].

After the economic meltdown gripped Wall Street in the third quarter of 2008, Google throttled back spending even further, opting to delay construction [7] of its data center in Pryor.

About Rich Miller [8]

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.


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URL to article: http://www.datacenterknowledge.com/archives/2010/04/16/google-data-center-spending-up-slightly/

URLs in this post:

[1] Image: http://www.datacenterknowledge.com/wp-content/uploads/2010/04/Google-Capex-1Q2010.png

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

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

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

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

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

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

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

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