Microsoft data centre expansion points to a cloud future

September 16, 2013

After adding more wholesale data centre space than any other company in 2012, Microsoft recently increased its investment in data centres across the globe to $15 billion, making it one of the major players. This is to support the growth in its Xbox Live gaming service and the switch of emphasis to its cloud platform Azure and online applications like Office365.

This massive expansion is being undertaken in 2 ways. Firstly, it is building its own data centres across the globe and this is being supplemented by buying in turn-key space in existing data centres.

Hybrid strategy decides whether to build or buy

This strategy of building where land and power are cheap and leasing third party space in populated areas like California and Virginia is underpinned by 35 weighted criteria to determine which is the best option to choose for a particular location.

These criteria include: availability and affordability of reliable power and fibre optic networks, the skills of the local workforce and the number of customers in close proximity to the site. This has led to more than 21 Megawatts of wholesale space being leased in the last 15 months while building in places as diverse as Singapore and Finland.

Such a massive investment is needed with the growth of Xbox and their online platform Azure. Currently, 15,000 servers look after Xbox Live, but this is planned to grow to more than 300,000 by the end of the year. Similarly, the massive push Microsoft is putting on other online services will mean this investment is needed.