Microsoft investing $700 million in new data center

New center in Iowa will support Xbox Live and Office 365 and is testament to "growing demand for Microsoft's cloud services."

Microsoft is investing $700 million in a new Iowa data center, the Xbox and Windows company has confirmed with the Des Moines Register.

The center, known previously as "Project Mountain," will benefit from $20 million in tax credits per a partnership with the Iowa Economic Development Authority Board.

The new data center will support Xbox Live and Office 365, Microsoft general manager of data services Christian Belady told the publication.

"The expansion supports the growing demand for Microsoft’s cloud services," Belady said, noting that the endeavor represents "our latest in efficient data center thinking."

Microsoft has touted an updated Xbox Live and expanded cloud services for the Xbox One. Xbox Live will be supported by 300,000 servers, up from 15,000 for Xbox 360.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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Discussion

801 comments
Ayebang
Ayebang

Many concern on privacy on Kinect....read this.

Hey ps4 fanboys, when you use camera in Iphone or in your labtop, it is same thing....record, save to cloud or hard drive and link with internet via face book or skype, share with yr permission.

If ps4 fanboys are scared of Kinect, pls take off your camera on yr expensive Iphone an dlabtop first, please.

THMBZDownGNZUp
THMBZDownGNZUp

More like investing in a center for personal data storage. PRISM via Kinect, your privacy is lost upon agreeing on the Terms of Service.



SinisterLemos
SinisterLemos

All you people are so scared about privacy...do you really think Microsoft wants millions of hours of 30 year old men jerking off in front of the Kinect?


drokmore
drokmore

The first thing I think about data center is MS selling all the data they have collected about us to other third parties. That's I'm sure how they plan on making tons of money.

Dr_takapotku
Dr_takapotku

It's funny how Sony does not hype the cloud computing so much, even though it's in partnership with the biggest and the best cloud computing company in the world when it comes to games. Gaikai has the most advanced cloud computing architecture in the world that has been focusing in games even  before the deal with Sony. Many people think that PS4 will only stream other platform games via cloud but it will do all the same cloud processing calculations via cloud that Xbox One does and even more. It seems that Sony will also win with the cloud computing processing power, which was the last stand for Xbox One and it has already been overtaken, but future will tell us will either of these cloud systems work and which one will function better. Atleast on paper, Sony is invincible. Check these out: http://www.cloudtweaks.com/2013/06/cloud-computing-capabilities-in-ps4/   ,  http://gaikai.com/

peteyboi29
peteyboi29

i'm no fanboi or conspiracy nut or what ever anyone that doesn't agree with this comment wants to label me, it just seems little more than coincidence that microsoft  have a massive network of kinect cameras all over the planet, and then they build a $700 million dollar "data center "  ???  i hope that seems suspicious to other people to :)  

LittleLuci
LittleLuci

I'm guessing that these 300,000 servers will all be virtual? 300,000 virtual servers is a far cry from 300,000 physical servers!

Does anyone know for sure?

I'm assuming the former...

the13stuff
the13stuff

Would have rather heard about $700 million being invested in the human race through Africa, legitimate strides in cancer and aids cures, poverty, or numerous other worthy causes. Instead, it is so people can curse at each other on Call of Duty and do powerpoints. And maybe be spied on.

dmastor
dmastor

So glad i'm not a Sony guy you all seem so shallow.and poor.  

bluefox755
bluefox755

Isn't the NSA also building a massive data center, only in Utah.

Majistrate
Majistrate

Looks like every xbone owner will have their own server! That's great news!

steelmouth
steelmouth

MS sure got money,If they really want something they have the cash to make it happen

TitanPolaris
TitanPolaris

This is like handing over the privacy keys to your digital life! I smell V.I.K.I. here! Just remember what WE CAN DO TO YOU MS, VOTE YOU OUT WITH OUR WALLETS!!

Polygon_Pariah
Polygon_Pariah

MS could literally give Sony fanboys a $100 dollars with no strings attached and you a-holes would cry and complain about why you didn't get $101

Barrakas21
Barrakas21

this will be the all wacthing eye...

Ayebang
Ayebang

It is illegal to do that sir.

Gamespot comments are always negatively bias to MICROSOFT. This why many boycott this site, not to read it. Too many ps4 fanboys who never accept the success of Microsoft.

Dr_takapotku
Dr_takapotku

Although Xbox One has state of the art hardware that will elevate the speed of streaming, the quality of the Playstation’s Cloud based network “Gaikai” is unmatched when it comes to streaming and remote access to resources. "

PuNkeRoiD
PuNkeRoiD

@peteyboi29 Don't be afraid, nobody cares what are you doing at home... otherwise you can always turn kinect off, or turn in front of the wall if you are paranoid ^^

Dr_takapotku
Dr_takapotku

@the13stuff Bill Gates has donated more money to charity and has helped the less fortunate people financially more than other person in the world. That is a fact even though I don't like M$'s policies or anything else about the company nowadays. They were very onto something once but have lost it completely some years ago. 

Dr_takapotku
Dr_takapotku

@dmastor Sony has bigger and better cloud than M$ with much more functions and processing to offer for PS4 users than what M$ has to offer for Xbox One users. That is a fact. But yeh I bet M$ has waisted more money than anyone else, again...

steelmouth
steelmouth

@jd7904 it would really help if you said what its about we cant just blindly follow links

hp2110
hp2110

@jd7904 kind of funny you are promoting a digital copy of a game when you bash Microsoft for trying to move digital. very ironic

xxYetterxx
xxYetterxx

@Dr_takapotku Cloud streaming and cloud computation are not the same thing.  Gaikai runs the game, compresses the video and streams it to your device.  MS Azure allows developers to pick and choose what they want processed in the cloud.  The two services are not comparable and I think it is unlikely that Sony will be able to match MS resources.  MS Azure is already very successful in it's 4 short years in business.  

DVONvX
DVONvX

@Dr_takapotku They don't hype it because, unlike MS, they know its not that big of a deal. MS talks about cloud this and cloud that. Its not as earth-shattering as MS would have you believe. 

peteyboi29
peteyboi29

@PuNkeRoiD @peteyboi29 i'm not paranoid my friend :)  and i know no one cares what i alone do at home :) but imagine as company you could build a massive database of all the things individual customers like and dislike as to better suggestively push products at those individuals, a company would triple there profits in a relatively small amount of time, one might say that would be very much worth it to a company with the power / revenue to achieve such a feat :) 

i don't like this simply because i like to make my own choices about what games i buy, not have some company suggestively marketing my life!!!

it will be the shape of things to come, i and most other people that are capable of unbiased, clean thought, don't like the idea of were this will head ( any good chess player things many move ahead, not just on the move being played) 


plus i won't need to turn a kinect off or face a device that has microphones in it "to the wall"  because i won't be buying one of these  things :)  

hordaak
hordaak

@Dr_takapotku The (former) ceo of MS is donating all of this money to charity. ALL of it. What has sony donated besides a bunch of bricked ps3's?

Chucara2
Chucara2

@Dr_takapotku You do realize that insisting on abbreviating Microsoft as "M$" makes your incorrect arguments seem even more moronic, right?

PuNkeRoiD
PuNkeRoiD

@Chaos_Dante_456 @steelmouth I belive they could do it, but than the console would cost like $200 more, and there is not a real need of it, most of the fans already own the 360...

jd7904
jd7904

@hp2110  I was never against digital games, just against being treated like a criminal, big difference.

Dr_takapotku
Dr_takapotku

@xxYetterxx @Dr_takapotku Don't you think I know that? That is the exact misunderstanding which I talked about earlier, people think that Gaikai is only for streaming but it's not. Read something about cloud computing, Gaikai and MS before coming here to talk about things. 

xxYetterxx
xxYetterxx

@peteyboi29 @PuNkeRoiD Though there is some validity to your statement, expect several splash screens asking you what information it is okay to send to MS and expect the tech savy crowd to monitor exactly what info MS is actually collecting.  If there is foul play going on, we are going to find out and it would more than likely destroy MS.  Do you think they're willing to go down that road?

jd7904
jd7904

@hp2110 it does not matter any more it's fixed now. Good Day sir, I'm gonna go play some games.

hp2110
hp2110

@jd7904 @hp2110 if a console switched to digital than they would have to do online checks. look what happened to the music industry. when was the last time you payed for music? without online checks there would be no way to stop free game downloads