Google Data Center Spending Rebounds to $872 Million in 3Q

Google Data Center Spending Rebounds to $872 Million in 3Q

Google invested $872 million in its Internet infrastructure in the third quarter of 2012, up from $774 million the previous quarter. Over the last four quarters, Google has invested nearly $3.2 billion in servers and mission-critical facilities.

Google invested $872 million in its Internet infrastructure in the third quarter of 2012, up from $774 million the previous quarter, the company said in its earnings announcement. Over the last four quarters, Google has invested nearly $3.2 billion in servers and mission-critical facilities, illustrating the strategic importance of data centers in Google's business.

Google's capital expenditures fluctuate from quarter to quarter. The latest uptick in spending comes as Google has announced its first data center project in South America, which will be located in Quilicura, Chile. The move reflects Google's growing focus on building out its international infrastructure, 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
  • 2Q 2012: $774 million
  • 3Q 2012: $872 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.

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