Google invests in data centers in Nordic region

By Marc Castro

Nov 04, 2013 08:38 AM EST

The owner of the world's most popular search engine, Google Inc, had laid out plans to invest a total of EUR450 million or USD608 million to expand the capacity of its Finnish data center. The expansion is to provide greater services as mobile video demand increases.

According to Google Data Center manager Dieter Kern, "Google is in Finland for the long-term. We're digging deep roots, both figuratively and in a concrete way."

Google is based out of Mountain View, CA and is now in the process of increasing its investments to cope with the increasing volume coming from wireless devices at the same time chases revenues from mobile advertising and other revenue streams. The company's third quarter capital expenditure was done for equipment, data centers and real estate, increased to USD2.29 billion from just USD1.6 billion in the previous quarter.

Companies seeking expanded data capacity as demand increases now look towards the Nordic region. This is due to the stable electricity grid as well as the climate which helps create savings in terms of equipment cooling requirements.

Google had purchased a former newsprint mill in Hamina back in 2009 for EUR40 million and an initial investment of EUR160 million for its conversion into a data cebter, An additional EUR150 million was spent to expand the site last year and now more construction is being undertaken.

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