Google increased its yearly spending in 2016, which is an indication that they are investing more on the construction of their data centre. They are also making plans to spend more in 2017.
Google spent $9.9 billion in 2015; and $10.9 billion in 2016. It appears that the majority of their capital spend goes towards data centres. They are investing in things such as facilities, production equipment and data centre construction.
In March 2016, Google made an announcement that they would be investing more in data centres. An initiative to back its enterprise cloud services, Google has made growth in this area a top priority with its main goal being to catch up with cloud industry leaders such as Microsoft and Amazon.
At present Google has a share of 2.5 percent in the service market, while industry leader Amazon has 70.1 percent and Microsoft 10.8 percent. Google lags behind companies such as IBM and Alibaba in terms of market share in this area, and they are doing everything possible to change that.
Google currently runs a large global network of data centres on a massive scale, but not all of their facilities are backed by cloud services. When the company made their announcement in March, they said by the end of 2017, they intended on adding 10 new cloud centre locations. In 2016, it launched two, and by the end of this year Google will have launched another eight. This also means that they could possibly end up spending even more than they spent in 2016.
Google is also continuing to expand its data centre capacity to support its other businesses. As well as the cloud regions that were launched last year, data centres in Dublin, Ireland were also purchased.
Google will announce its intended locations as the year progresses.