QTS Acquires Herakles to Expand into Sacramento

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One of the power rooms at the Herakles data Center in Sacramento, Calif,. which has been acquired by QTS (Quality Technology Services).

QTS (Quality Technology Services) has significantly expanded its footprint in California, acquiring the Herakles data center, the company said today. The Herakles facility is a 92,000 square foot Tier III data center in Sacramento, with 52,600 square feet of raised floor space and 9 megawatts of power capacity. The terms of the deal were not disclosed.

QTS now has three wholly owned and operated facilities in California, with two other facilities in Santa Clara. “The acquisition of this technologically advanced data center adds a strategically located asset to our portfolio,” said Chad Williams, CEO of QTS. “Located just 120 miles north of our Santa Clara, Calif., data center and less than 90 miles from San Francisco, this facility expands our Northern California presence and offers California-based and national customers in each facility regional disaster recovery options as well as colocation and cloud services.”

Sacramento is a popular location for data center infrastructure for disaster recovery, as it’s outside the state’s earthquake zone and about a two-hour drive from either the Bay Area and Silicon Valley. Sacramento also offers moderate power pricing from the Sacramento Municipal Utility District (SMUD). The Sacramento market features a cluster of commercial data centers, as well as some facilities housing infrastructure for California’s state government

The Herakles facility will be fully integrated into QTS’ data center portfolio, dubbed QTS Sacramento. The company said California is among the most requested markets for QTS customers looking to expand the size of their data center footprint.

Herakles has been providing data center services in the Sacramento, Calif. market since 2001, delivering uptime exceeding 99.999% over the years. Data Center Knowledge posted a video look inside the facility a few years back.

“We’re proud of what our team has accomplished at Herakles, and when it came time to transition the asset to the current ownership, it was important to us to make the right decision on behalf of our customers,” said Lou Kirchner, president and CEO of Herakles.   “QTS has an impeccable reputation in the data center industry for combining reliability with flexibility and product innovation.   Additionally their commitment to making a difference in the markets they serve will make QTS an important addition to the Sacramento business community.”

Herakles customer Next Cloud offered up a statement regarding the acquisition as well, noting the advantages of QTS’ national footprint brings to Herakles customers.

“QTS’ acquisition of the Herakles data center now gives us the opportunity to remain in the data center environment that has proven to be very beneficial to our business while giving us the advantages of a relationship with a national data center provider,” said Gary Lamb, founder and chief technology officer-Next Cloud, Inc. “As we explore options for cloud services and business continuity, we now have the convenience of expanding with a single service provider.”

The Bank Street Group served as exclusive financial advisor to Herakles in the transaction.

About the Author

Jason Verge is an Editor/Industry Analyst on the Data Center Knowledge team with a strong background in the data center and Web hosting industries. In the past he’s covered all things Internet Infrastructure, including cloud (IaaS, PaaS and SaaS), mass market hosting, managed hosting, enterprise IT spending trends and M&A. He writes about a range of topics at DCK, with an emphasis on cloud hosting.

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