In a large investment to expand its cloud services, Microsoft will spending nearly $700 million to build a new data center in West Des Moines, Iowa. Two of the main reasons for the data center will be to support Xbox Live and their Office 365 online services.
Microsoft began investment in the West Des Moines are back in 2009 when they scooped up 40 acres of land in the western suburb. While competition to get large businesses into areas is tough for states, Iowa is particularly friendly with no tax on electricity and lots of other tax incentives for companies looking to build these types of facilities.
What's interesting is that while both Sony and Microsoft have plans for online services to be available when their new consoles launch, Microsoft has promised 300,000 servers will be available for the services they will be providing with Xbox Live. It looks like Microsoft will be working on a much larger scale when it comes to service availability than anything Sony has stated at this point.