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Summary:

Google spent $1.2 billion on property and equipment in the first quarter of 2013, nearly doubling last year’s first quarter.

Inside a Google data center. Image courtesy of Google
photo: Google

Google has stepped up its infrastructure spending once again, to the tune of $1.2 billion in the first quarter, according to its earnings report released on Thursday. That’s a 20 percent quarter-over-quarter increase, and the previous quarter’s $1.02 billion represented Google’s second-biggest quarterly investment ever.

There’s not much to say about this uptick in spending that hasn’t been said before. Essentially, Google has to keep on spending to keep its services running as well as possible and as efficiently as possible. Competing against Amazon, Facebook, Apple and Microsoft in everything from search to mobile to cloud computing costs a boatload of cash. Rolling out Google Fiber — soon to be in three cities — certainly isn’t cheap, either.

Apples-to-apples comparisons can be tough, because everyone’s businesses are different and decisions to build or buy new gear can affect expenditures, as can massive new headquarters. But here goes: In its fiscal third quarter earnings announced on Thursday, Microsoft claims it spent $930 million. Facebook, Apple and Amazon have not yet released their latest earnings, although both Apple and Amazon spent more than $2 billion on “property and equipment” in the previous quarter. Facebook spent $198 million and another $89 million leasing property and equipment.

This quarter’s $1.2 billion also represents a nearly 2x increase over last year’s first quarter infrastructure spending for Google.

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  1. Google’s future looks very bright.

    They control ads, so the better the internet gets, the better their business model gets. Now they’ve found a profitable way of running an ISP. So they’re profiting so they can then make more profit, well played Google.

    They’re really becoming a cyber monopoly. The first to becoming a 100% vertically and horizontally integrated company that exists in 1s and 0s.

    Yet we need Google now more than ever. Comcast, TimeWarner, AT&T, TMobile, Sprint, Verizon, etc etc, make most of their money by artificially limiting your pipeline, thereby artificially creating a scarce resource. They run ads around the clock trying to convince you that you’ll NEVER need 1Gbps (which is ridiculous, I can use that amount now, in both directions).

    When analyzing current wealth, it is now becoming DIRECTLY linked to people’s wealth, land value, and overall economic prosperity.

  2. Reblogged this on ankurgrewal's Blog and commented:
    Now that’s called EXPANSION !!!

  3. kurtisfriesen Friday, April 19, 2013

    How much did they spend on employee lunches?

  4. They are expanding in my back yard! 1 Gig per second connection would be perfect for my server for http://sugargig.com

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