Despite numerous losses, Google Cloud is expanding into a slew of new areas

Despite numerous losses, Google Cloud is expanding into a slew of new areas ...

Google Cloud has announced plans to launch a slew of new cloud areas in Europe and Africa, aiming to meet growing customer demand across the globe.

Google Cloud Next 22, the company will expand its network to 48 localities in Austria, Greece, Norway, Sweden, and South Africa as detailed.

Customers from the different regions will benefit from improved latency as well as the ability to more easily meet complex data residency and security requirements. Google predicts this increase to bring out over 300,000 additional employment in the respective countries by 2030.

Google Cloud performance

The expansion of Google Cloud into new territories underscores Google''s ongoing commitment to strengthening its public cloud division. However, unlike Amazon and Microsoft, Google is yet to find a way to expand its cloud computing business into the green.

Although Google Cloud had a run rate of $6.3 billion last quarter (up 35% from the previous year), it recorded an overall loss of $850 million. In the last four years, the division has lost in the region of $17 billion.

The price of energy is rising, and the rise in inflation is expected to result in an increase in the cost of data center hardware. It is also unlikely that Google Cloud will fall over into profitability in the near future.

When asked about the losses recorded, Google stated that money must be spent in order to be made. According to Ruth Porat, the company''s financial division is to continue to invest heavily in expanding the Google Clouds infrastructure network, in order to enable it to thrive on the rapid growth of the cloud market.

"While Cloud operating loss and operating margin improved in 2021, we plan to continue to invest aggressively in Cloud because to the significant market opportunity we see back in February, with a earnings call. We do remain focused on the long-term path to profitability, and with time, operating losses and operating margin should benefit from increased scale.

Google Cloud currently has 35 regions, one of which was first opened in 2022, and 106 availability zones, and 173 network edge locations. However, with plans set early this year to bring new areas to the likes of Malaysia, Mexico, New Zealand, and Thailand, the announcements at Cloud Next will increase the size of this network by a significant margin.

These cloud regions help with bringing Google''s innovations closer to customers around the globe, as well as provide a platform that permits organizations to change their behavior.