Microsoft Investing Big In Foreign Data Centers: Should US Investors Be Concerned?

Microsoft (NASDAQ: MSFT) is becoming a member of different tech giants in pouring billions of {dollars} to increase its information middle operations abroad. That is permitting them to construct out the infrastructure wanted to help their quickly rising cloud-based software program companies. It is a signal these corporations see a brilliant future for information storage exterior of the U.S.

Nevertheless, it isn't essentially a knock on the U.S. data storage market. This is why.

Going massive away from residence

Microsoft is on monitor to open its first regional information middle in Israel early subsequent yr. The corporate at present shops information for Israeli clients in different regional information facilities, reminiscent of these in Abu Dhabi and Dubai that it accomplished in 2019. Nevertheless, the nation will now have a public Microsoft cloud to securely retailer information inside its borders. That is solely the start of the corporate's cloud efforts within the nation. Microsoft can be bidding on a large-scale cloud-based regional information middle in Israel, competing towards massive tech rivals Alphabet (NASDAQ: GOOG) subsidiary Google and Amazon (NASDAQ: AMZN). It is planning on investing $1 billion to $1.5 billion within the nation by means of information facilities and the enlargement of its chip analysis and improvement actions.

Along with Israel, Microsoft is trying to pour $1 billion into Malaysia over the following 5 years. The funding is a part of a partnership with authorities businesses and native corporations to construct and handle large-scale information facilities and supply cloud providers. This funding would allow Malaysia to change into an information middle hub the place the nation would handle information from numerous surrounding nations.

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