Savvis, Inc. (SVVS) will open two new data centers in the Boston and Chicago metropolitan areas, citing strong customer demand for IT infrastructure services in those markets. The new Chicago data center will offer Savvis Proximity Hosting, which provides direct connectivity and low latency network access to major financial exchanges inside the data center.
"In response to strong customer demand, we are adding new data centers in Chicago and Boston where we have a strong customer base with sales & operations staff in place and well-positioned to capture that demand," said Phil Koen, Chief Executive Officer of Savvis. "Further, since these centers are in final stages of build out to Savvis' high standards for reliability and redundancy, we will be able to make them available to customers in a very short time frame, offering our full portfolio of colocation, managed hosting, utility computing and network solutions."
Savvis said it expects to spend about $3 million in capital expenditure in 2007 to develop these two new centers, and an additional $12 million in 2008. The work will be funded by the sale of two leases to Microsoft announced in June.
The Boston data center will provide 40,000 square feet of raised floor space, to be brought on line in two phases, the first in late 2007 and the second in the second half of 2008. The Chicago data center will provide a total of 20,000 square feet of raised floor space, and will come online in the second quarter of 2008. By 2011, the data centers are expected to generate more than $50 million of revenue.
With the two new centers announced today, Savvis' total data center footprint exceeds 1.3 million square feet of raised floor encompassing 29 data centers worldwide. Savvis opened four new data centers in September and October 2007 in Atlanta; Sterling, Va.; Santa Clara; and Piscataway, N.J.