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Not slowing down at all, Google spent $2.65B on data centers in Q2

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Google’s quarterly infrastructure spending has been skyrocketing for several quarters now, and the past three months were no exception. Google spent nearly $2.65 billion on data centers during the second quarter — more than $1 billion over last year’s second quarter and more than triple what it spent two years ago.

Google is now knee-deep in numerous infrastructure-intensive fields, but I suspect its major push into cloud computing is a big contributor to the record spending. As Google Fellow and Senior Vice President of Technical Infrastructure Urs Hölzle explained at our Structure conference last month, the company expects its cloud platform to be a major line of business going forward and it’s spending more money than anybody else to ensure its infrastructure is up to the task.

Update: This article was corrected at 5 p.m. PST to correct amount Google spent to 2.65B, not 2.67B.

2 Responses to “Not slowing down at all, Google spent $2.65B on data centers in Q2”

  1. Great piece Derrick. Thanks.

    I would love to see a comparison of the total cloud data center vs. legacy data center spend. In rough cliche terms, legacy meaning the enterprise DC built with gear from legacy vendors like Cisco, EMC, Oracle, HP, Dell, etc.

  2. This kind of spending is necessary to catch up with Amazon and Microsoft, who already have very mature cloud products compared to Google (especially AWS, of course). The question is how much of this is going into Cloud Platform and how much is to support their existing businesses of ads, search, apps and GMail. One area Google really lacks is geographic diversity – they only have 3 regions for Cloud Platform right now compared to many, many more from AWS, Azure and Softlayer. Indeed, Softlayer are really pushing into loads of new locations this year.