Tech giants Google (GOOGL) and Microsoft (MSFT) are making major investments in Europe in order to expand their data center networks. More precisely, Google plans to spend €5.5 billion (about $6.41 billion) in Germany, while Microsoft is set to invest $10 billion in a new project in Portugal. According to Reuters, Google’s investment will focus on the German state of Hesse, which is located in central Germany. In fact, the company will build a new data center in Dietzenbach, near Frankfurt, and expand its existing site in Hanau.
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Notably, Marianne Janik, a Google Cloud executive, said that each location will have about 100 people working there. In addition, Philipp Justus, who leads Google’s operations in Germany, noted that the total impact could result in 9,000 indirect jobs in the region. Germany’s Finance Minister, Lars Klingbeil, welcomed the move by saying it shows that Germany remains a competitive business location. While the government has launched a large infrastructure fund to support economic growth, he clarified that Google’s investment won’t receive any public subsidies.
At the same time, Microsoft is moving forward with a $10 billion data center in Sines, Portugal, after securing a multi-year lease for the site back in October. According to Bloomberg, the project is being developed with the help of Portuguese firm Start Campus and British AI startup Nscale. Sines, known for its beaches and fishing industry, will now become part of Microsoft’s strategy to increase its AI capabilities.
Which Tech Giant Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that MSFT stock has more room to run than GOOGL. In fact, Microsoft’s price target of $633.14 per share implies almost 26% upside versus Google’s 8.2%.
