BOYDTON, VA—Microsoft is expanding its data center operations here once again, investing $346.7 million in its facilities. This is the third expansion it has made at the data center since it opened in 2010. Microsoft invested $499 million in the center for that initial launch and then the following year invested an additional $150 million.

The company has invested a total of $1.3 billion, in short, in this facility, noted Virginia Gov. Terry McAuliffe. "Microsoft's data center campus in Mecklenburg County continues to represent transformational growth, opportunity, and investment for the region and for Virginia," he said in a prepared statement.

Virginia is kicking in funds for this latest expansion; McAuliffe approved a $1.6 million grant from the Governor's Opportunity Fund to assist Mecklenburg County with the project. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $1.6 million in Tobacco Region Opportunity Funds for the project.

It is not surprising Microsoft choose Virginia for its data center, although the town of Boydton (population less than 500) was a bit eyebrow-raising.

Some 70% of the world's Internet traffic flows through the 50 data centers that encompass more than 7 million square feet in the state, according to the the Northern Virginia Technology Council

Besides Microsoft, Facebook, Amazon, Google, Visa, and hundreds of other companies are now hosting their businesses' IT in local data centers.

The voracious appetite for all things cloud is the top reason for Microsoft's expansion of its center here.