Google Investing In Asian Expansion

Google (NASDAQ:GOOG) is reported to be planning on investing more than $200 million to build its first three data centers in Asia as it strives to keep up with demand in the region. According to a report by the Associated Press, the company has bought land in Honk Kong, Taiwan and Singapore for the data centers, which house computers that store and serve data in a system that is essential for the search engine’s operation.

The centers in Hong Kong and Taiwan are expected to cost $100 million each including the costs of the land. Google did not give an estimate for the data center in Singapore. Google says it hopes to finish construction within two years.

“Asia’s the fastest growing market for Internet users and Internet usage so we’re seeing large numbers of new users coming online every day,” Taj Meadows, Google’s policy communications manager in Asia, said Thursday. Meadows said Google is setting up the centers so users can have “faster and more reliable access” to online services. When the data centers come online, the Taiwan and Hong Kong centers will employ five to 20 full-time employees, including computer technicians and engineers.

Google currently has six data centers in the United States and two centers in Europe.

Google Inc. is primarily focused on improving the ways people connect with information. The Company generates revenue by delivering online advertising. The Company focuses on areas, such as search, advertising, operating systems and platforms, and enterprise.

Google shares were trading slightly down at noon today; 528.52 or -0.6%.

written by Rachel Brook

Rachel Brook is an up and coming financial writer focusing on commodity price inflation and how the overall market reacts to the price swings. She also covers emerging markets in Africa and SE Asia.

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