That is what is ended up being. It started with the thoughts of ‘Pink is the colour of ignorance’, a story that might still make it, but I want to add more evidence. The Guardian had a good start, but it is more than that and I need to tag it. The other colour is green, the colour of dollars. Reuters give us some parts of it, but my mind is asking questions. Questions aren’t voiced by the media at present. As such we start with Reuters (at https://www.reuters.com/technology/google-invest-1-billion-uk-data-centre-2024-01-18/) where we are given ‘Google to invest $1 billion in UK data centre’ and this comes with the added text “It also comes weeks after Microsoft unveiled plans to pump 2.5 billion pounds ($3.2 billion) into Britain over three years, including in growing its data centre capacity, to underpin future AI services.” The math doesn’t work, especially now. You see UK pushed away from the EU and all this sets a weird station. I know that any data centre costs money and I have no idea how much. One argument is that a data center of the size that Facebook or Google might use would cost from $250 million to $500 million, so why is Google spending twice that and why is Microsoft spending 250% more than that? Now the twice I could get. Operational cost, rising energy costs and when you add that up you might get to 750 million and that is only 250 million away from the leap that Google is stating.
Sp when you look at that setting we see two bulls fighting for the same population (Google and Microstupid) but the larger question becomes is why? Why spend that much to cater to 68 million people in the United Kingdom. It is not just services, it is data and data collection. To what degree is anyones guess, but wonder why Microsoft would spend $2,500,000,000 to service 68 million people. I am wondering who is buttering the sandwich of whom. I tend to distrust Microsoft, there have been too many issues and they have lost too many battles. Is this desperation?
The open field
The questions in the open field is not the UK, you see if these two are there they are already growing in the Middle East or they are about to. You see, these investments make sense in the UAE with 9.5 million and Saudi Arabia with 36 million. Apart from their populations both these players will have exploding infrastructure needs (The Kingdom of Saudi Arabia more than the UAE), but the UAE is on a steep incline of services and services needs and I showed that in a few articles last week. The UK has none of that at present. More importantly the EU has also needs but not to these degrees and the UK facilities will have projected limitations as one might guess. So what gives? As for Future AI services. AI does not yet exist and the Machine Learning solutions are all massively dependent on data, something Microsoft is still short of. As I ponder more sides to this, I see more issues and also Huawei now has a data center in Abu Dhabi, giving them a much larger advantage in a place where cash is still king, or better stated cash has a more robust voice, more than the UK can muster at any given time before January 2026.
As such there are issues and even as none of this is on Reuters (important to know), the setting is that the lack of visibility in several directions make me wonder where these two are going. No matter how good we think of Google (I still do) they both need data, Google to remain top dog and Microsoft to not be as irrelevant as they made themselves to be.
Sides no one is looking at and I merely wonder why. Are they in a flim flam spin by Microsoft marketing? Do too many believe the shallowness of Microsoft presentations? Your guess is as good as mine, but when you start digging into actual sources that remain true non-biassed the math does not add up. At least for me it does not and I am not economist or econometrical engineer. Data is its own currency, the problem is that when it is the only currency remaining those who have it get access to everything, the rest do not.
Just a thought, enjoy your Friday.
