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i/o Data Centers Reports Strong Leasing

i/o Data Centers says it already has commitments for more than half the space in its 100,000 square foot facility in Scottsdale, Ariz.

Data center operator i/o Data Centers hasn't even opened its first facility, but has already leased more than half the space in its 100,000 square foot Phoenix data center, the company said this week. "Business is booming right now," Tony Wanger, i/o Data Center senior managing director told the Phoenix Business Journal. "Things are looking really good."

i/o Data Centers is planning to build more than 1 million square feet of premium data center space in up to 10 markets, starting with the flagship facility in the Perimeter Business Center business park in North Scottsdale, Ariz. which is expected to be fully operational by July 1. The former manufacturing plant was purchased by i/o Data Centers in January for $13.5 million.

i/o Data Centers is the data center operations affiliate of private equity firm IO Capital, LLC with $100 million in assets. i/o's management team developed and operated the Downtown Phoenix Technology Exchange before selling it to Digital Realty Trust in a 2006 transaction valued at $175 million.

The new colocation center has lease commitments for more than half of its available rack space, according to Wanger, who said i/o is offering free network cross connects for customers' cabinets to entice tenants for the remainder of the space. The company also plans a second data center in the Phoenix area and is evaluating sites in the Denver market, with plans to eventually assemble a network of up to eight data centers nationwide.