The budgets that are pumped into hyperscale datacenters do not increase as much as they used to. Nevertheless, investments remain very high. In their ikwartaal talks Amazon, Google and Microsoft talk about substantial investments.
Amazon, Microsoft and Google do not give exact figures when it comes to their data centers, but their reports give enough details to make a proper estimate.
Google spent about $5.6 billion last quarter on production tools, data center construction and facilities. That’s $2 billion more than the same quarter in 2017. The increased spending is due to the fact that Google is building more than 20 data centers around the world. They also invest in the network infrastructure such as submarine cables for higher internet speed and quality.
Leader AWS reports its data center investments under a capital lease bucket that amounted to 2.33 billion dollars last quarter. Amazon informs its investors that it has invested considerably less than last year. Purely in terms of additional investments, it barely increases by 9 percent compared to 69 percent the year before.
The operating margin for AWS was higher than ever at 31 percent. It emphasises that current installations are used efficiently. This applies not only to all AWS business but also to Amazon consumers, who are not by chance the largest customer of AWS.
Microsoft, the number two cloud provider, reported a total investment in the Intelligent Cloud of 4.3 billion U.S. dollars. A large part of this will undoubtedly go to data centres. According to Microsoft, the high level of investment is necessary to meet customer demand.
Microsoft CFO Amy Hood: We expect growth in data centers to remain limited next year, despite the fact that we expect increasing growth in customer numbers.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.