Apple paid over $1.7 million dollars for one small acre of land adjacent to its North Carolina data center, reports claim. Apple was willing to pay up to get the land in its drive to improve digital entertainment services that fuel demand for iPods, iPhones and iPads. The plot is adjacent to the site where Apple is building a 500,000-square-foot warehouse-like structure that analysts say will brim with servers, generators and other gear that make it easier to deliver songs, TV episodes and movies via the iTunes online store.
The one acre of land owners initially refused but later on agreed; "They told us to put a price on it and we did," Kathy Fulbright said. The Fulbrights initially paid just $6,000 for the land over 34 years ago.
Gartner analyst David Cappuccio said, "Between iTunes and the video store they're going to have, you're talking about massive amounts of data and millions of people trying to access that at the same time."
The center is due to be completed by year's end. It'll help Apple customers stream and store music and videos remotely, via so-called cloud, rather than having to download files to a hard drive, said Gene Munster.
Apple's plans for cloud-based music and video services seem set for introduction in early 2011, subsequent to the construction of the data center.