Develop reports that Microsoft is investing $700 million in a new Iowan data center. The data center will power both Microsoft's online Office 365 suite and the Xbox One's online Cloud features. According to Microsoft’s Christian Belady, the expansion "supports the growing demand for Microsoft’s cloud services."
So many ignorant comments in this thread.
FYI people, Microsoft's cloud services aren't just for it's gaming and Office divisions. A ton of companies also make use of their cloud services (titled Azure). They're also a direct competitor to Amazon's similar cloud services.
So before you people get all bitchy about 'online DRM and Office!' please know that Microsoft doesn't just revolve around your preconceived notions of shoving DRM down our throats.