As it invests hundreds of millions of dollars in building its own data centers around the world, Facebook is also continuing to invest in third-party data center space data center space in Silicon Valley and northern Virginia. Why would Facebook continue to invest in leased facilities even as it builds its own data centers? The decision is tied to the economics of data center construction and the continuing importance of technology hubs where networks converge.
Facebook is in the process of expanding its footprint in at least one wholesale data center where it leases space in Silicon Valley. The company also said last week that updated data center tax incentives in Virginia open up “new opportunities” for investment in the state, where Facebook leases data center space from two large players in the wholesale space.