Apple Inc is setting up a high-speed network and upgrading how it builds data centers, to compete better with Amazon.com Inc, Google Inc and Microsoft Corp in cloud services, Bloomberg reported, citing people familiar with the plans.

The plan entails connecting Apple's data centers in California, Nevada, North Carolina and Oregon, and others to get content closer to Internet hubs in some densely populated markets, Bloomberg reported.

Apple is seeking to handle more traffic on its own, without renting server space from cloud providers such as Amazon and Microsoft. While Apple hasn't disclosed total costs, investments will run into the billions, Bloomberg reported.

Apple will stick with most of its existing vendors, and is mainly seeking to bolster its current infrastructure, according to the report. Apple declined to comment on the report.

The iPhone maker said in February it would spend 1.7 billion euros ($1.9 billion) to build two data centers in Europe.

Apple said the centers, in Ireland and Denmark, would power Apple's online services, including the iTunes Store, App Store, iMessage, Maps and Siri for customers in Europe.