Microsoft Investing $700M in New Data Center for Cloud Services

Microsoft is taking its cloud storage and cloud-powered functions very seriously, as the company is planning a new $700 million expansion to its Iowa-based server farms.

According to Games Industry, the additional funding will bring Microsoft's total investment in data centers up to $1 billion in the region. While the servers will host a wealth of Microsoft's planned cloud services, the biggest component will be Xbox Live. Regardless of Microsoft's change of heart regarding DRM and digital game storage, the investment in the cloud is a major component of the Xbox One's strategy moving forward.

Sony will also have cloud servers available for its PlayStation 4, but the Xbox One has a larger focus thus far on cloud computing not just for gamers, but for the games themselves as well. With a proposed 300,000 Xbox Live servers planned for the launch of the Xbox One, Microsoft is thinking bigger across the board. It remains to be seen just how big a difference cloud computing will make for developers, but with this step, Microsoft is showing just how ready it is to support whatever demands the Xbox One is tasked with by devs and gamers alike.