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Google is analyzing the costs associated with expanding its data center infrastructure. Fixed investment costs are $3 billion, and variable operating costs are estimated at

Google is analyzing the costs associated with expanding its data center infrastructure. Fixed investment costs are $3 billion, and variable operating costs are estimated at $500 million annually. Google expects the expanded data center to support $2 billion in additional annual revenue from cloud services.

Requirements:

  • Calculate the total investment and annual operating costs for the data center expansion.
  • Determine the ROI and payback period for the infrastructure investment.
  • Analyze the scalability and reliability benefits of the expanded data center.
  • Discuss the strategic role of cloud infrastructure in Google's growth strategy.
  • Evaluate the financial implications of the expansion on Google's balance sheet.
  • Recommend data security and sustainability measures for the new infrastructure.

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