(WEB HOST INDUSTRY REVIEW) — Colocation provider Internap Network Services (www.internap.com) announced on Tuesday it will build data centers in Silicon Valley and Houston.
The moves are part of the company’s overall strategy to move colocation services from its partner facilities into data centers owned by Internap.
The company will invest $23 million to build a 27,000 square foot data center space in Silicon Valley. It currently operates four data centers in San Jose.
The new facility will be built in two phases, with the 14,000 square foot first phase set to come online in the third quarter of 2010.
Internap will invest another $5 million to expand its existing data center in Houston by 5,000 square feet of space. The facility has nearly reached its capacity.
In addition to the two data centers, Internap also revealed its progress on the Seattle data center expansion it announced in November.
The first phase of the expanded 7,500 square feet of space will open for customers in the third quarter this year.
The transition to company-controlled colocation space has already helped Internap improve its profit margin in its colocation business from 25 percent in the second quarter of 2008 to 30 percent in the fourth quarter, says Internap.
“Our data center value proposition is built on our ability to offer premium data center space and IP services,” says Cooney. “We’re well-equipped to compete, and our track record in company-controlled colo space reflects our capacity for growth.”
