Over $1.1 billion dollars for data centers

Jan 22, 2007 16:22 GMT  ·  By

Microsoft and Google have gone on a building spree. Currently, the Redmond and the Mountain View companies are engaged in a server farm face-off. What is at stake? The dominant position on the Internet.

In this context, Microsoft and Google have dug deep into their pockets and are spending an estimated $1.15 billion between them in the massive data center race. Both investments are designed to prepare the two giants for the continuous evolution of the Internet infrastructure. Additional server farms will keep up the pace with the surging online traffic.

And while Google is building a $660 million server farms in Lenoir, a small town located in North Carolina, the Redmond Company has announced that San Antonio, Texas will be the location of a $550 million data center.

Microsoft San Antonio server farm will equal in size the Alamodome and will be a 470,000-square-foot complex. Microsoft revealed that the San Antonio City Council has already approved a $20.7 million tax abatement for a duration of 10 years and will additionally provide $5.2 million from the CPS Energy economic development fund to build the electrical infrastructure of the data center.

According to Microsoft, the server farm that will take up no less than 44 acres in Westover Hills will create only 75 high-tech jobs, but the boost that it will deliver to the local construction industry and to the consumption of CPS Energy when it becomes operational will also benefit the San Antonio.