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Apple building server farm, secret lair in North Carolina

As Mike mentioned in the news roundup yesterday, word is going around that the corporate overlords at Apple are planning to build a massive server farm in the state of North Carolina within the next decade or so. How do we know? Because the company is working on getting a few nice tax breaks to go along with the deal, eventually worth about $46 million if Apple fulfills their end of the agreement. Their end of the agreement being a huge investment of a whopping $1 billion (that's over 333,000 Xserves, if that is indeed what they're installing -- and we bet not) into an economy that could probably use it. What exactly will go in there? We aren't sure -- lawmakers say the investment is worth it, and obviously Apple isn't showing their cards.

[Note: the $1B investment figure is not an upfront number, but rather a total investment over the first 9 years of operation. –Ed.]

But the facility, once up and running, will start by employing at least 100 people, so that's a nice start. Google has apparently gone through the same deal with North Carolina recently, though their deal was a little smaller: $600 million investment for a server farm that opened last year.

More backend for Mobile Me? More power for the App Store or a project like it? A giant building full of Cubes running 24 hours a day? Or something we haven't even dreamt of yet?

As Mike mentioned in the news roundup yesterday, word is going around that the corporate overlords at Apple are planning to build a massive...
 

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johndoe01

all speculation at this point. could possibly be an all in one
design/manufacturing facility of military-spec'd wares, shh.

July 14 2009 at 10:24 PM Report abuse rate up rate down Reply
Martin

Please note that you were counting $1 billion in selling prices of Xserve. Apple is not selling to itself, so after deducting its margin we are somewhere at $2300 each Xserve and that would make roughly 430 000 of them and not 330 000 as stated in the article ;)

May 31 2009 at 10:35 AM Report abuse rate up rate down Reply
Joey

It's to support streaming Free Ad Supported TV Shows.

May 26 2009 at 9:43 PM Report abuse rate up rate down Reply
airmanchairman

Is Apple finally considering one of the options we were all guessing at in the build-up to the iPhone, amidst all the rumours: becoming a MVNO?

Wikipedia definition:
A mobile virtual network operator (MVNO) is a company that provides mobile phone service but does not have its own licensed frequency allocation of radio spectrum, nor does it necessarily have all of the infrastructure required to provide mobile telephone service.[

May 26 2009 at 5:35 PM Report abuse rate up rate down Reply
alf

i'd say if this rumor is true, it's going to be for apple's massive cloud computing efforts that are now in the planning stages - so it makes sense. however, the dollar amount does not, as that seems like a massive investment.

also, n.c. is prone to hurricanes, so it couldn't be too close to the shore, or where it would be susceptible to inclement weather of any kind. also, if they're smart, there would be a zero cost on the electric, as they should follow the lead of the fedex center in cali and make the entire roof solar [and/or wind] powered. the fedex facility produces so much power that it has to sell it back to the elec co., while the footprint of it is the size of a very small room and produces zero noise as well.

*think different*

May 26 2009 at 4:36 PM Report abuse rate up rate down Reply
emikoman

Appstore for the Mac would not make sense because they already have one "http://www.apple.com/downloads" It's been up for decades ya know?

May 26 2009 at 4:09 PM Report abuse rate up rate down Reply
Ted

My guess is they are making the allspark cube...

May 26 2009 at 3:11 PM Report abuse rate up rate down Reply
the Oracle

I think this is more than the existing services MobileMe, AppStore etc ... are too small for such a massive computing investment.
Like an Oracle, Apple is building something way better than push email.
Not willing to say more but imagine the iTablet embedding a brand new instant collaborative environment with very cool features. i mean the end of email as we know it. A huge service, of course based on Cloud computing.

Second insight : Apple will not let the mobile operators decide data charging price plans typically when roaming. just like blackberry, the bundle prices will include everything so that when travelling abroad and using ur tablet, no silly roaming data charege will apply.

I have another Oracle insight on how it will be integrated with the iPhone. but

May 26 2009 at 7:39 AM Report abuse rate up rate down Reply
David

Heh, screw xserves, if Apple pays as much as $250 per Mac Mini then they could put 4 million of them in a farm. Now that's a massive farm. Of course they are not very dense so it will take a Pentagon sized building ;p

On a serious note, I am glad that the farm is coming to North Carolina since I live here. It would be nice if the Google and Apple farms and the requisite broad backbone connections to feed them will spill over to the consumer in the form of better bandwidth for all.

May 26 2009 at 4:43 AM Report abuse rate up rate down Reply
1 reply to David's comment
Doug

Um, I think you'd NEED that many to make up for the difference in speed, LOL!

May 26 2009 at 12:21 PM Report abuse rate up rate down Reply
Darwin Smith

Hopefully they are planning to upgrade the iTunes servers from molasses speed

May 26 2009 at 4:36 AM Report abuse rate up rate down Reply
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