JPMorgan Chase spent $2 billion on brand new data centers last year

JPMorgan Chases's tech spending priorities for this year include investments in both data centers and cloud computing, digital consumer experience, and data analytics.

Conceptual abstract of digital transactions / online banking / open banking / FinTech
ipopba / Getty Images

JPMorgan Chase & Co. spent $2 billion on new data centers last year, even as the multinational investment banking and financial services company continued to move data and applications to cloud platforms run by AWS, Google, and Microsoft.

The $2 billion is part of the firm’s total annual spending on technology, which amounted to more than $12 billion last year, according to details shared in JPMorgan Chase’s fourth-quarter and full-year 2021 earnings presentation. Looking at the current year, the firm expects to increase its tech and tech-adjacent spending by roughly 20%. IT priorities in 2022 will be consistent with prior years and will include increases in cloud capabilities, data centers, digital consumer experience, and data and analytics.

“So we spent $2 billion on brand new data centers, okay, which have all the cloud capability you can have in private data centers and stuff like that. We’re still running the old data centers,” said Jamie Dimon, JPMorgan Chase’s chairman and CEO, in a January conference call with financial analysts. Most of the applications and data housed in the new data centers are cloud-eligible, Dimon added.

Meanwhile, the firm continues to broaden its multi-cloud footprint.

“We’re running a whole bunch of major programs, which I don’t think we disclosed, on AWS, and we’re working with Google and Microsoft to run some of the stuff in the cloud because we want to have multiple cloud capabilities,” Dimon said. This year, between 30% and 50% of the firm’s applications and data will be moving to cloud platforms, he said.

To continue reading this article register now