Feb, 2009 : Terremark Delays Building in Santa Clara


📅 - Terremark Worldwide (terremark.com 👉 Total Reviews: 3
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) announced on Monday it has decided to delay the building of a data center in Santa Clara, California, focusing its development budget dollars instead on its data center in Virginia, the NAP of the Capital Region, according to a report by Data Center Knowledge.

The company says it is seeing significant demand for colocation and managed hosting services at the Culpeper, Virginia facility.

Last month, Terremark began offering its full suite of managed solutions at the NAP of the Capital Region following the completed deployment of its Infinistructure utility-computing platform.

The planned expansion on Corvin Drive marks the second major data center in Santa Clara that has been brought to a halt as a result of credit constraints.

In October, DuPont Fabros Technology announced the delay of a $270 million data center in Santa Clara after its inability to attain enough capital to finance the project.

Despite these delays, Terremark and DuPont Fabros say they are both excited about their respective Santa Clara builds, which they hope to eventually complete.

The data center delays will likely lead to an eventual shortage of data center space in the Santa Clara area, as the builds were projected to add at least 200,000 square feet of data center space this year.

Santa Clara is currently one of the busiest areas in Silicon Valley because of the region's low power rates from the local utility, Silicon Valley Power.

The postponement of Terremark's Santa Clara data center will also leave fewer options for companies seeking to lease a significant amount of data center space in Santa Clara.

The only other data center project planned to open in the city this year is CRG West's first phase of its three-building campus.

Construction on the 50,000 square foot space is set to be completed in the fourth quarter of 2009.

So far, the only existing data center space available in Santa Clara is in two of Digital Realty Trust's seven buildings.

Terremark acquired two properties, 2970 and 3000 Corvin Drive, for $12.25 million. The 3.05 acre properties comprise of an existing 67,000 square foot building and are located right by Terremark's other data center at 3030 Colvin Drive.

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