After a record $2.65 billion in infrastructure spending during the second quarter of 2014, Google’s third-quarter spending slowed down a bit to $2.42 billion. That’s still more than the company has spent in any quarter other than the previous one, and more than most if not all other technology companies currently spend in any given quarter.
Conventional wisdom suggests some of that expense is going toward building out data center capacity for its expanding cloud computing platform that became generally available in December 2013, and Google’s revenue breakdown appears to support that conclusion.
The company doesn’t break out cloud computing revenue as a line item, but rather breaks revenue into “advertising” and “other.” The latter source has grown nearly 50 percent since the third quarter of last year, up to $1.84 billion. It’s unlikely all of that is attributable to the cloud business, but “other” revenue has grown by more than 300 percent since Google Compute Engine was first announced in June 2012, and now accounts for 11 percent of the company’s total revenue.