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Hosting Provider Savvis to Expand Data Centres

Hosting Provider Savvis to Expand Data Centres

Web hosting provider Savvis Communications (www.savvis.net) announced Tuesday during its quarterly earnings call that it will expand existing data centers in Atlanta, Seattle and Piscataway, New Jersey.

The move follows the company's recent announcement that it will be partnering with Indian telecommunications provider Bharti airtel Limited to offer managed hosting and cloud computing services in India.

The company says it will add data center capacity to meet the growth of its managed hosting and cloud computing business.

Savvis says it will add 15,000 square feet of space in Atlanta, 16,700 square feet of new space in Seattle, and 15,600 square feet of space in Piscataway.

The hosting provider plans to invest about $41 million in the expansions with new space to come online in the third and fourth quarters of 2011.

The company is also considering expansion in other markets as well. Of the $69 million for capital expenditures Savvis has set aside for 2011, about $28 million will go towards funding additional data center expansion.

Savvis CFO Gregory Freiberg said the company currently has "other projects that we're evaluating but not yet ready to announce."

This year's data center builds could potential exceed the 55,000 square feet of sellable data center space Savvis added during 2010.


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