Microsoft will spend 2.5 billion U.S. dollars to build its largest data center

Seattle, July 22, according to foreign media reports, Microsoft will spend 1.5-25 billion US dollars in West Des Moines, Iowa to establish a 1.7 million square feet of data center to support its growing cloud service business .

This will be the third data center Microsoft has established locally since 2008, when it will form the company's largest data center in the United States. The city of West Des Moines stated that the three data centers will total US$3.5 billion, while the city of West Des Moines, with a population of 64,000, will receive at least US$300 million in tax revenue from this newly established data center. Iowa's data center is mainly to provide services for the central United States, and construction work will begin next spring.

It is reasonable that Microsoft continues to expand its data center. Microsoft's fourth-quarter financial report on July 19 showed that Microsoft’s “Smart Cloud” business revenue increased by 7% to US$6.7 billion, and core cloud product’s Azure operating revenue increased by 102%. The cloud computing business currently accounts for one-third of the company's revenue and is the main driver of Microsoft and its share price growth.

Currently Microsoft has established 26 data centers and another 8 are planned. In China, data centers were established in Beijing, Shanghai, and Hong Kong, respectively, to support Azure services in northern, eastern and East Asia.

Via Geekwire