Cloud Giants Spend $27bn On New Data Centres In Last Year
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Google, Microsoft and Amazon were the big spenders on Data Centres in the last quarter. The figures come from the company public fillings so may include other expenditures but the majority of the funds have gone to data centres.

In the most recent quarter, Google was the big spender with $2.35bn, Microsoft $1.7bn and Amazon $880m.

According to 451 Research, Hyperscale operators drive data centre efficiency by exploiting economies of scale, pushing up utilization, quantifying productivity and innovating both with the facilities and throughout their organizations. As a result, they are able to increase their IT service transactions per dollar of data center cost and reallocate resources that might otherwise be spent on operations to growth. Over time, this will drive efficiency throughout the industry because competing operators and even enterprise datacentres will be under pressure to match the hyper-scale efficiency – and to better understand their own costs.

Cloud Giants Spend $27bn On New Data Centres In Last Year


Amazon is thought to have spent $12bn on Data Centers since 2005. Last year the capital expenditures are believed to be almost equal to the revenues.

Google has reportedly spent $23bn on its internet infrastructure and Data Centers.

Microsoft recently disclosed that it has spent more than $18Bn on its Data Centres since 2005.

The CloudMGR Take

This is evidence that the big 3 cloud providers are going to drive change throughout the industry. They are the only companies that can afford to drive costs down to take market share, they also have other profitable business units that can support the capital investment required. The message for existing providers is to start to create new products and services products and services that utilize the public cloud from one of the big providers.


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