Terremark's flagship Miami data center, NAP of the Americas
(WEB HOST INDUSTRY REVIEW) — Data center operator Terremark Worldwide (www.terremark.com) announced on Wednesday it is planning on expanding its data center space in four key markets to meet growing customer demand for colocation and cloud services, according to a report by Data Center Knowledge.
The company says it may turn to the debt markets to finance the construction of these data centers.
In its quarterly earnings conference call, Terremark reported that its revenue has increased since last quarter by 22 percent at $84.9 million, gaining 67 new customers and $37.7 million in bookings.
Meanwhile, Terremark’s fiscal year guidance for revenues is somewhere between $350 million and $353 million.
Terremark chairman and CEO Manuel Medina said the company has leased 48,000 square feet of data center space in third quarter and is looking to build a fourth data center at its NAP of the Capital Region in Culpeper, Virginia.
The new facility will be 50,000 square feet and is expected to cost Terremark $45 million.
“Approximately 80 percent of the campus data center space is currently contracted and we have a very robust pipeline with a number of large potential colocation opportunities,” says Medina. “We’re carefully monitoring both demand and capacity of the NAP Capital Region, and we will break ground on the construction of the fourth data center, Pod D when necessary. As we did with Pod C we expected to deliver space to customers within six months of launching construction.”
The company expects to begin construction on the next expansion phase of its Santa Clara data center in the first three months of 2011.
The expansion will add 20,000 square foot and complete construction by the end of the year. The Santa Clara expansion is expected to require about $25 million in investment.
Medina says the company continues to see strong demand in California, and as a result, has “advanced the planning and permitting process of the third phase expansion of our NAP West data center.”
Terremark is also looking to invest $15 million in expanding its NAP do Brasil in Sao Paulo by 15,000 square feet of data center space, as well as expand its fourth floor of its flagship Miami data center, the NAP of the Americas.
The company is considering three different borrowing options. The first is a $9 million loan plus 6 percent annual interest from the overseas private investment firm OPIC.
The second is a $75 million second lien basket under its existing indenture. The final option is leveraging the cash flows of its very strong credit worthy Federal and enterprise customers.
Terremark began construction on its 25,000 square foot NAP of Amsterdam data center earlier this year.
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