Microsoft Corporation (NASDAQ:MSFT) Reportedly Opening Two Data Centers in Germany

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Microsoft Corporation (NASDAQ:MSFT) was among Tuesday’s losers with a 2.44% drop closing at $94.41.

The financial and technological sectors came under pressure as the investors tried dismissing the effects that could have emerged as a result of the new secretary of state appointment.

Reports from close sources to the company indicate that the technology giant is seeking to open up two data centers for more than $120 million in costs. The centers are expected to be based on cloud data formations.

The data centers will permit the Microsoft’s clients which is a key competitor with the likes of Alphabet Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN) in the more than $250 billion cloud computer market to store their data in Germany owing to the fact that it has stringent policies on privacy.

Microsoft is reported to have already offered their services from the German-based cloud centers in a partnership with Deutsche Telkom besides having other data centers in Dublin and Amsterdam, this is according to reports from Handelsblatt and Wirtschaftswoche

Since 2015 Microsoft has had a partnership with Deutsche Telekom. This enabled the company to offer the cloud services based in Germany from 2 of its facilities in the Frankfurt City and Magdeburg city.

The terms of the deal were that Deutsche Telekom will act as a data trustee and will be in charge of controlling all the customers’ data access in the overseas market

The reports also indicate that due to the high prices and an absence of flexibility in shifting and lifting of the data, the demands in the German-based cloud had been weaker.

Officials from the tele-company refused to make any comments with regards to the company’s new investments, however only said that the company was excited to offer its cloud services to both Germans and the International market.

The company’s spokesman on a written mail question made the comment that a lot of customers more so those with a high sensitive need especially in the public sector had preferred the German’s cloud services also adding that they provide options to clients

Notably, Microsoft has been steadily expanding its data centers with also a new speculation that it could be opening more centers in Johannesburg, South Africa.

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