Google Has Busy Week: Will Expand to Nine States & Beef Up Data Center Campus in Belgium
by Josh Anderson
MOUNTAIN VIEW, CALIFORNIA — Google will expand or enhance its presence in nine states and hire thousands of employees to support this plan, said Chief Executive Officer Sundar Pichai on an earnings call yesterday. Five of those states will enjoy a new data center in 2018.
“We plan to hire thousands of people across the U.S. this year,” Pichai said. “Last year in the US we grew faster outside the Bay Area than in the Bay Area. To support this growth, we will be making significant investments in offices across nine states, including Colorado and Michigan.” Outside of its Silicon Valley headquarters, Google already maintains a presence in 21 states and has built data centers in Iowa, North Carolina, and Oklahoma. Google also previously announced a significant data center expansion into San Jose, not far from its Mountain View HQ.
This news came only one day before another major announcement from the Alphabet-owned company. Google will also invest €250 Million into its Belgium operations, with plans to build a new data center in Saint-Ghislain this year. The company plans to open the doors to the facility, which will be the third data center on the Belgium campus — Google’s first in Europe — sometime in mid-2019. Google’s Belgium campus is famous for its advanced cooling system that utilizes water from the nearby industrial canal, rather than using a traditional refrigeration system.
“The new installation will raise Google’s total investment in Belgium to one billion euros,” said Google in a statement, alongside the country’s Prime Minister Charles Michel, who undoubtedly welcomed the facility thanks to its promised 1200 jobs.
Google was very busy in the first month of 2018. These expansions are not even the first announcements of the new year. In mid-January, Google announced that it would build three new subsea cables to expand its data center presence into five new regions — the Netherlands, Montreal, Los Angeles, Hong Kong, and Finland, all of which are expected to see new data centers up and running by 2019.
Despite this forward-looking expansion, Alphabet’s earnings call failed to meet Wall Street’s expectations.
Alphabet’s adjusted earnings fell short of Wall Street expectations when they were released Thursday, due to two main factors. The cost for Google’s to acquire traffic is reportedly increasing, while the new tax overhaul cost Alphabet $9.9 Billion USD. Together, these forces contributed to a $3 Billion USD net loss in the fourth quarter of 2017.