We have another sign that Google is very much concerned about the current economic conditions. Both the Raleigh News & Observer and the Triangle Business Journal are reporting that the search engine giant has told state officials it won’t be taking a $4.7 million grant after all.
The grant was supposed to be an incentive for Google to create 210 jobs and spend $600 million over four years–all at its new data center in Lenoir, NC. However, Google has thus far only hired 50 employees and has all but stopped the expansion of its data center in Lenoir.
While Google states it didn’t like all of the terms of the grant agreement it also cited “recent volatile economic conditions” in a letter to state officials.
Now, correct me if I am wrong, but isn’t the purpose of these new data centers to support Google’s growth in its core offering–search? If Google’s not willing to continue spending at the same pace on search, does this suggest that Google’s search growth is slowing?
It’s one thing to shut down Lively.com, but a little more concerning to slow down your data center growth.