Since its launch, Rackspace’s cloud business has seen significant growth with its total number of servers reaching more than 10,000 over the last year and revenue rising by 27 percent.
As Rich Miller points out in a post on Data Center Knowledge (http://www.datacenterknowledge.com/archives/2013/01/21/rackspace-plans-major-cloud-expansion-in-uk), Rackspace Hosting has expanded its cloud computing service significantly in recent years, adding infrastructure in Europe, Asia and the U.S.
With this latest data center build, Rackspace Hosting continues to compete with Amazon Web Services for market share in emerging markets like the UK, Asia, and Brazil. The company attributes 25 percent of its revenue outside the US, mostly from Europe.
Rackspace has long been operating data centers in the UK in support of its managed hosting services, including its most recent data center build in Slough, UK, which opened in 2009.
The past couple of years has seen a need for Rackspace Hosting to ramp up its infrastructure in the UK after the company expanded its Rackspace Cloud Files and Cloud Servers to UK customers.
According to the SEC filing, Rackspace signed an agreement with a Digital Realty subsidiary on January 11 for a 10 MW data center in a yet-to-be-decided location in the UK.
The contract stipulates that the two companies must mutually decide on a site and data center design within a year. The agreement also suggests a new data center build but also allows for further development.
The data center will contain five data halls to be built in two phases, with the first phase featuring three data halls of about 2 MW each, and the second phase offering an additional two data halls, according to the SEC filing.
With this latest data center agreement, Rackspace continues its ongoing strategy of leasing wholesale data center space, allowing for a faster and more cost-effective data center expansion process.
Talk Back: Do you think this latest UK data center agreement is the best strategic move for Rackspace Hosting? Are you currently offering cloud services in the UK? Do you think this data center build will effectively help improve cloud service for Rackspace’s UK customers? Let us know in the comments.