Has anyone noticed an influx in United States companies building data centers on European soil? Well, Apple (AAPL) is the next in line to do so. On Monday, Apple announced that they would be spending nearly $2 billion in order to build 2 massive data centers in Europe. Today, we’ll talk about why American companies are moving data centers to European soil, the specifics revolving around the new Apple data centers, and of course, whether investors seem to like the idea or not. So, let’s get right to it!
Why American Companies Are Moving Servers To European Soil
I’m sure you know about the Snowden scandal, but just in case you missed it; Edward Snowden recently leaked classified US Government information. The information leaked outlined the fact that the United States was spying not only on enemies, but also on allies and it’s own consumers and businesses.
Since the scandal, governments, businesses, and consumers alike have been weary of privacy and security online and in other forms of telecommunication. However, there is one party that’s started to make a major change…Europe! Since the scandal, we’ve seen major changes in how Europe handles and protects data stored on their land. In fear that all data will be hovered over by the NSA if on American soil, several United States tech companies have started to move their data to Europe.
Apple’s New Data Centers
As mentioned above, Apple (AAPL) announced Monday that they will be building 2 new data centers in Europe; joining the likes of Amazon (AMZN) and SalesForce.com (CRM). Here are the key details surrounding the new data centers…
- Cost – Unfortunately, every source I’ve found seems to say something different. Figures seem to range from $1.7 billion to $2 billion. However, the majority of sources are sticking around $1.93 billion.
- Where The Data Centers Will Be – Apple (AAPL) announced that there will be 2 new servers built, one in Ireland and one in Denmark.
- How Big They Will Be – Both centers will measure out to 166,000 square meters each.
- Environmental & Economic Impact – The data centers will both run on green, renewable energy resources. Also, Apple will be hiring hundreds of new employees for each location.
- What Will The Centers Be Used For – The data centers will power all of Apple’s (AAPL) online services including iTunes, Siri, App Store, iMessage, and Maps for European customers.
How Investors Seem To Be Reacting To The News
While I can’t speak to each and every investor, I have been strolling StockTwits.com quite a bit this morning as well as watching the charts and it seems as though investors love the news. Here are a few of the comments I’ve seen on StockTwits.com this morning…
$APPL yesssssss!!!!!!!!! – by karm1270
$APPL is on fire… I’m sure glad I got back on track on friday, cool! Bullish – by OpearGhost88
$AAPL I am 100% sure we will see 145 within weeks. Technically no hurdles, but this share worth 160 right now, no brainer – by vincentm62
As far as the charts go, they’re telling me that investors love the news as well. At 2:15 PM on Monday, the stock was up 2.17% and expected to continue climbing!
What Are Your Thoughts?
Would you invest in Apple? Do you like the idea of European data centers? Let me know in the comments below!