Google, a child company of Alphabet Inc., recently purchased 173 acres of land in the Netherlands. This move is part of Google’s grand plan to construct more data centers in Europe.
Google is yet to decide whether to build on the newly-acquired land in Noord-Holland. The company says that a decision will soon be made.
According to Mark Jensen, Google’s spokesperson, the company wants to ensure that there are options to expand its data center presence in Europe. Whether or not this happens will depend on whether data center demand in Europe increases.
Increasing Demand for Data Center Real Estate
There is no doubt that data center real estate is a highly sought after item. A number of tech companies including Microsoft have already built data centers in the Netherlands.
The Netherlands is centrally located on the European continent, giving tech companies a strategic advantage. Moreover, the country has invested in sustainable energy, lowering energy costs for data centers.
Dutch Economic Ministry Rubbishes Claims of Electricity Shortages
In May, the Dutch Data Center Association (DDA) published a report claiming that the Netherlands’ power grid cannot handle tech developments.
The shortages, according to the DDA, are particularly bad in areas with a high concentration of data centers in and around Amsterdam.
These claims were rubbished by the Dutch economic minister, who reiterated that the Netherlands had no power shortage issues.
Google Already Owns Other Pieces of Land in Europe
The recently-purchased 173 acres is not the only land Google owns in the Netherlands. The company already owns a data center in Eemshaven, on which Google has plans to invest $582.2 million on the data center’s expansion.
Google owns pieces of land in Sweden, Luxembourg, and Denmark. In February, Google announced that it wants to make more investments in its Belgian land.
Why Data Center Construction Benefits Other Areas of Europe’s Economy
Already, there are several companies that are benefiting from the growth of data centers in Europe. For example, Schneider Electric SE says that the increased orders for data center equipment are on the rise.
Norway, on the other hand, wants to attract companies to build data centers, citing its abundant hydropower.
It’s not All Sunshine for Every European Country
While its good news for the likes of Sweden and the Netherlands, things aren’t so rosy for other European countries. Apple, Inc. recently withdrew a plan to construct a $1 billion data center in Ireland.
Google Plans to Unseat Amazon and Microsoft in the Cloud Race
All this shows that the cloud race still rages, as each tech company tries to build more data centers than its competitors. This is in line with the rising demand for online storage space and rapid access to the huge quantities of data generated by consumers and businesses.
With regards to cloud services, Google sits behind Microsoft and Amazon. To take the top spot, Google has announced that it dedicated most of the $7.7 billion expenditure for cloud and AI infrastructural development.