...are reporting that the search engine giant has told state officials it wont be taking a $4.7 million grant after all.

The grant was supposed to be an incentive for Google to create 210 jobs and spend $600 million over four years"all at its new data center in Lenoir, NC. However, Google has thus far only hired 50 employees and has all but stopped the expansion of its data center in Lenoir.

While Google states it didnt like all of the terms of the grant agreement it also cited "recent volatile economic" in a letter to state officials.

Now, correct me if I am wrong, but isnt the purpose of these new data centers to support Googles growth in its core offering"search? If Googles not willing to continue spending at the same pace on search, does this suggest that Googles search growth is slowing?

Its one thing to shut down Lively.com, but a little more concerning to slow down your data center growth.

Included links: The News & Observer, Triangle Business Journal

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