QTS Gets $25M, Opens New Space in Santa Clara
May 26th, 2010 By: Rich Miller
QTS (Quality Technology Services) today announced the completion of its expansion in Santa Clara, Calif., which provides an additional 70,000 square feet of data center space in the heart of Silicon Valley. The expansion adds 15 megawatts of power capacity, and follows an additional $25 million investment by private equity firm General Atlantic, which is supporting the national expansion of QTS’ data center footprint.
“QTS has seen an explosion in interest and a corollary growth in demand for the past few years,” said Chad Williams, Chairman and CEO of QTS. “As such, we are continuing down a path of prudent acquisition and expansions to adequately meet the needs of our customers, both today and in the future. This most recent Santa Clara expansion demonstrates our commitment, both to our customers and to the community in which we work.”
The $25 million investment from General Atlantic follows an earlier $150 million investment, which kicked QTS into high gear. The company quickly announced the expansion of its huge downtown Atlanta data center, the acquisition of a huge Virginia property to serve as a new data center, and the hiring of Telx veteran Tesh Durvasula as Chief Marketing and Business Officer and Google alum Simon Tusha as Chief Technology Officer.
“We’re pleased to partner with QTS to help move the company to the next level of business,” said Phil Trahanas, managing director of General Atlantic and a director at QTS. “QTS’ current footprint and service portfolio touch every major component in the data center and hosting markets, from large customized data center to colocation to managed services. As such, QTS is the only player in the market today able to offer services across the hosting spectrum. We’re pleased to partner with QTS to help move the company to the next level of business.”
““This follow-on investment is a testament to both QTS’ continued ability to execute on the company’s business plan and the overall strength of the hosting sector,” said Bill Schafer, Chief Financial Officer of QTS. “We are pleased to have a strong, long-term partner in General Atlantic. Their support validates that QTS has the business model and the financial resources to continue to thrive in this dynamic marketplace.”
Quality Tech has built a network of 11 data center facilities spanning more than 2.5 million square feet of space, growing through acquisitions of facilities and customers from eDeltaCom, IBM, NTT America and Globix. The company offers both wholesale data center space and managed services.