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Facebook to Build Energy-Efficient Data Center in Denmark

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Social-media giant Facebook Inc  recently announced that it will build its new data center in Odense, Denmark. The data center would be the third international data center for Facebook and is expected to create about 150 jobs.

Expectedly, the facility will cater to the surge in Internet usage and the demand for data storage capacity. McEntegart went on to add, "The Odense data center will be one of the most advanced, energy-efficient data centers in the world."

The announcement is in line with Facebook’s initiative of building energy efficient and environmental friendly facilities. Back in 2015, Facebook built the 1 million dollar data center in Ft. Worth, TX, which uses clean wind energy to run.

According to Fyens.dk sources, the project valuation is more that $100 million and will include two large data centers and auxiliary structures for administration and other technical facilities. Reportedly, the Danish project is expected to be completed and ready for functioning by the end of 2020.

Facebook Inc. Price and Consensus

Facebook Inc. Price and Consensus | Facebook Inc. Quote

With the growing use of Internet services especially cloud computing, the need for data centers has also increased. These facilities comprise computer servers that process Internet searches, emails and cloud computing

As per U.S. independent research firm, Gartner, data center hardware spending will grow to $177 billion in 2017. Booming cloud computing services and increasing use in mobile applications are boosting the demand for hard drives required to run them and pushing the need for big data centers and processing units. Based on this projection, the company is attempting to capitalize on this opportunity.

In fact, Facebook is not the only company thinking on these lines. Other tech companies such as Apple Inc. (AAPL - Free Report)  and Google (GOOGL - Free Report)  have also been engaged in expanding their data centers. In 2015, Apple invested in a data center in Demark. Google built new facilities in Alabama and Georgia to meet the requirement of more data-intensive services, such as Google search, Gmail, Google+ and YouTube.

Positive Share Price Movement

At present, Facebook has a Zacks Rank #3 (Hold). In the past one year, Facebook’s shares are up 35.46%, compared with the Zacks Internet Services industry’s increase of 14.47%.

A better-ranked stock in the wider technology space is GrubHub Inc.  which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, GrubHub has recorded a positive average earnings surprise of 26.01%.

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