5 Things Apple Could Use Its Massive New Datacenter For

Apple datacenter

Photo: Bernstein Research

Apple’s massive new datacenter in North Carolina is expected to “go live” this spring, according to Bernstein analyst Toni Sacconaghi, in a note today.What’s it going to be used for? Sacconaghi hypothesizes:

  • Expanding its media streaming and advertising business.
  • Cloud-based storage and synchronisation — sort of like Dropbox.
  • A cheap music streaming service that would compete with the likes of Spotify and Rhapsody.
  • Cheap video streaming service, like Netflix’s.
  • A voice “interface” or navigation service, based on its Siri acquisition.

Apple’s new datacenter is about five times as big as its current datacenter in Newark, Calif., he writes, and Apple has been spending a ton to get it set up. Apple spent $1.7 billion last fiscal year — almost 3% of its revenue — on IT assets, Sacconaghi notes. That’s more than Google, Microsoft, and Amazon.

Read: Here’s Why I’m Waiting For The iPad 3

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