October 23, 2007 – (HOSTSEARCH.COM) – SAVVIS, Inc. (www.savvis.net), a global leader in IT infrastructure services for business applications, has announced plans to open two new data centers in the Boston and Chicago metropolitan areas. The new centers will provide a broad range of IT infrastructure services, including colocation, managed hosting, virtualized and utility computing, managed networks, and security, to meet the growing needs of enterprise IT.
The company also announced that the new Chicago data center will offer SAVVIS Proximity Hosting which provides direct connectivity and low latency network access to major financial exchanges and Electronic Communications Networks located inside the data center.
“SAVVIS is focused on being a market leader by offering our customers highly integrated compute, storage & network infrastructures provisioned as a service,” said Phil Koen, Chief Executive Officer of SAVVIS. “In response to strong customer demand, we are adding new data centers in Chicago and Boston where we have a strong customer base with sales & operations staff in place and well-positioned to capture that demand. Further, since these centers are in final stages of build out to SAVVIS’ high standards for reliability and redundancy, we will be able to make them available to customers in a very short time frame, offering our full portfolio of colocation, managed hosting, utility computing and network solutions.”
SAVVIS anticipates spending approximately $3 million in capital expenditure in 2007 to develop these two new centers, and an additional $12 million in 2008. Funding will be provided by the proceeds of the sale of certain assets to Microsoft announced in June and cash generated by operations.
The Boston data center will provide a total of approximately 40,000 square feet of raised floor space, to be brought on line in two installments, the first in late 2007 followed by a second in the latter half of 2008 yielding a total of approximately 25,000 square feet of revenue-generating space. The Chicago data center will provide a total of 20,000 square feet of raised floor space yielding 10,000 square feet of revenue-generating space, and will be brought on line beginning in the second quarter of 2008. By 2011, the data centers are expected to generate more than $50 million of revenue at approximately 40% Adjusted EBITDA margin.
In addition to the new data centers in Boston and Chicago, SAVVIS developed and opened four new data centers in September and October 2007 in the Atlanta, Washington, DC, Silicon Valley and New York metropolitan areas. With the two new centers announced today, SAVVIS’ total data center footprint exceeds 1.3 million square feet of raised floor encompassing 29 data centers worldwide.
