Microsoft spending $700 million to build data center

Since the next generation system unveiling, we have heard non-stop praises about “the Cloud” or some version of a non-physical place to save data from our consoles.

Microsoft is following though on their promises by allocating $700 million to build a data center in Des Moines, Iowa. Although they already have a significant presence in the state, this huge expenditure will push their investment to about $1 billion.

In a statement submitted by the General Manager of Microsoft’s data center services, Christian Belady, to the Des Moines Register, it was said that the expansion “supports the growing demand for Microsoft’s cloud services.”

The proposed data center will mainly support services rendered by Xbox Live, but will also be largely devoted to Microsoft’s cloud for its users.  Since their change in DRM policy, Microsoft is bolstering their cloud service to differentiate themselves from Sony’s offerings and offer a superior product.

Microsoft has already promised 300,000 Xbox Live servers for the launch of Xbox One, so they have Sony beaten in that regard. If this is a service that becomes popular or even a necessity, it will be interesting to see if Sony devotes more money into building their cloud infrastructure.