365 Main Inc. continues to expand its network of data centers, adding two facilities in California markets where existing centers are nearing capacity. The San Francisco-based company today announced the acquisition of a facility in Oakland, Calif. and plans to construct a new data center in Vernon, Calif. (Los Angeles market) to meet continuing strong demand for data center space. The announcement comes as the company has sold out its flagship facility in San Francisco and as its El Segundo, Calif. data center, which opened in June 2006, is nearing capacity.
On Tuesday 365 Main closed on the acquisition of an 111,000 square-foot Oakland data center near Jack London Square, which includes 80,000 square feet of technical space with a 30-inch raised floor. Metro PCS Wireless Inc. and T-Mobile USA are existing tenants in the property, which was built in 2001. 365 Main is investing in additional infrastructure for power, cooling, connectivity and security at the property, which is less than 10 miles from 365 Main's original San Francisco data center. 365 Main says demand for the remaining space in Oakland is significant, and the first lease for a private colocation room has already been signed by GNi, a California-based managed services provider that provides support services for 365 Main tenants and leases space at most of its facilities.
"The demand for high-quality data center space in the San Francisco Bay Area is the greatest in the country, and we've simply run out of room at our San Francisco facility," said Chris Dolan, chief executive officer of 365 Main. "Expanding to Oakland fits all our criteria: existing demand, existing tenants, good location, well-defined pipeline. It's a strategic move that makes sense for our business, and we look forward to becoming part of the Oakland community."
365 Main also announced that it has secured development rights to build a 150,000-square-foot facility in Vernon, Calif., a suburb of Los Angeles. The new facility will accommodate additional 365 Main customers in the Los Angeles market, as the company is in thew final stages of leases that will bring its nearby El Segundo data center to capacity.
Since the 1930s the City of Vernon has maintained a separate electric utility, and current rates are as much as 40 percent less than other locations in California. Those power savings will be passed directly to customers since 365 Main charges customers for their exact power usage, compared to flat-rate or bulk power billing featured in competitive facilities. 365 Main has seen power demands within its existing data centers quadruple in the last three years.
"365 Main is filling its data centers extremely rapidly, even when compared to the rest of the red-hot data center market," said analyst Daniel Golding of Tier1 Research. "The ability to rapidly construct top-quality data centers in tight markets is one of the reasons that 365 Main has quickly become one of the nation's top data center providers."
In June 2006, 365 Main announced that it was acquiring facilities in Phoenix and Northern Virginia, adding 460,000 square feet to its data center platform. In Sept. 2005 it bought a 131,000 square foot fomer AboveNet site in El Segundo, which began accepting customers in June 2006. 365 Main launched in 2003 by purchasing a 185,000 square foot data center in San Francisco.