Peak Hosting will lease more than 1 megawatt of space in Digital Realty's newest building in Ashburn, Virginia, the companies said this week. Peak Hosting is the first operational customer in the 200,000 square foot first phase of Building G at the Digital Loudoun campus, with additional tenants currently being installed.
The Peak Hosting deal is the latest in a series of announcements highlighting the expansion of Digital Realty's operations in Ashburn, as well as the broader growth trends for the data center industry in Loudoun County. Digital Realty said Wednesday that it would invest an additional $150 million in Building G, a 400,000 square foot project in two phases. The first phase includes space for 10 Turn-Key Flex PODs, each spanning about 10,000 square feet, as well as 100,000 square feet of powered shell space and 30,000 square feet of offices. Phase two will feature 12 Turn-Key Flex data center PODs.
Peak Hosting is a manged hosting provider that describes its business as "Operations as a Service." The San Francisco-based comnpany provides dedicated, cloud, and hybrid enterprise-class architectures, promising to manage "everything but your code."
Targeting 'Cloud Fatigue'
"For companies with less than 1,000 servers, the economic incentive to do things in-house simply isn't there," said Matt Lewin, Chief Executive Officer for Peak Hosting. "It just becomes a distraction. We are eliminating 'cloud fatigue' for businesses across the nation and providing the best engineers, architects, and support staff on the Internet. This isn't just 'managed hosting'; it's a fully-outsourced, customized technical operations service."
"Several factors led to our choosing Digital Realty to expand our east coast footprint," said Jeffrey Papen, founder of Peak Hosting. "We committed to over a megawatt in one of Digital Realty's newest properties where we can leverage our deep consulting and technological experience to build, from scratch, a managed hosting environment where we can implement custom designs to solve the specific business problems that our clients face."
Digital's Turn-Key Flex solution lets customers select from a catalogue of components during the design and construction process to meet their data center specifications. The program offers customers finished “plug and play” raised-floor data center space, which shifts the data center development costs from the tenant to the landlord, and allows for much quicker deployment than if the customer built a new facility on its own.
"We are very pleased to expand our relationship with Peak Hosting at our Digital Ashburn Datacampus," said Michael Foust, Chief Executive Officer of Digital Realty. "Understanding their business needs in terms of geographic diversity and flexibility enabled us to deliver a data center solution that will support their immediate and long-term growth plans."