google-capex-1Q-2012

Google Data Center Spending Recedes to $607M

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Google invested $607 million in its Internet infrastructure in the first quarter of 2012, significantly lower than its spending in the previous quarter. Google’s capital expenditures fluctuate from quarter to quarter, and the dip is likely tied to the completion of active projects, especially the company’s new data center in Hamina, Finland.

But there are plenty of projects moving ahead that will require continued spending in coming quarters. This month Google announced plans to double the size of its data center in Pryor, Oklahoma. Last last year the company has announced four new international data center projects, including three new facilities in three markets in Asia (Singapore, Taiwan and Hong Kong) and a new data center in Dublin.

Here’s a look at Google’s quarter-by-quarter spending on capital expenditures.

  • 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
  • 2Q2010: $476 million
  • 3Q2010: $757 million
  • 4Q2010: $2.55 Billion
  • 1Q2011: $890 million
  • 2Q2011: $917 million
  • 3Q2011: $680 million
  • 4Q2011: $951 million
  • 1Q 2012: $607 million

A capital expenditure is an investment in a long-term asset, typically physical assets such as buildings or machinery. Google says the majority of its capital investments are for IT infrastructure, including data enters, servers, and networking equipment. In the past the company’s CapEx spending has closely tracked its data center construction projects, each of which requires between $200 million and $600 million in investment.

About the Author

Rich Miller is the founder and editor at large 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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