Microsoft Delays Data Center Plans

As part of its cost-cutting measures, Microsoft has announced that it will delay the construction of a new data center in Des Moines, Iowa.

Microsoft isn’t making its vast profits any more, it’s shedding 5,000 jobs, and, according to a new company blog posting, it’s also going to delay its plans for a new data center in Des Moines, Iowa. The center was set to host Hotmail, Live Search and Windows Live services.

In the posting, from Arne Josefsberg, general manager of infrastructure services, Global Foundation Services, and Michael Manos, general manager of data centers, Global Foundation Services, the pair say that “we’re postponing construction of the data center in Iowa that we recently purchased land for. We are still continuing construction of our facilities in Chicago and Dublin, and are planning to open them as customer demand warrants. But given the current economic climate we’re going to do the right thing for our business and shareholders and revisit our plans on a quarter-by-quarter basis. On other fronts, we are expanding existing capacity and making improvements for our other co-location facilities, like Amsterdam, that strengthen our global footprint and help us meet growing demand for online services for businesses.”

As firms try to cut costs by moving to more inline services, Microsoft’s online service business rose marginally in 2008, up $3 million to $866 million.