NTT Com Expands North American Data Center Footprint with $350 Million Stake in RagingWire Data Centers


NTT Com Expands North American Data Center Footprint with $350 Million Stake in RagingWire Data Centers

By Laura Stotler

NTT Communications Corp (NTT Com) is more than doubling its North American data center footprint and beefing up its colocation services with an 80-percent ownership stake in RagingWire Data Centers. The company has invested $350 million in the data center provider in a partnership that will enable both companies to better respond to demand for colocation services throughout the world.

A provider of communications services and cloud solutions, NTT Com will also make use of RagingWire’s technologies for the design and operation of its data centers. The founders and management team at RagingWire will stay at the company and retain a minority interest in it.

NTT Com already operates data centers internationally in more than 150 locations for a total of more than 2.5 million square feet of server room floor space. The investment in RagingWire adds an additional 650,000 square feet at campuses in Sacramento, CA and Ashburn, VA, which are under expansion. RagingWire is also constructing a new 150,000-square-foot facility in Sacramento and will break ground on a giant new project in Ashburn. The company has plans to build a 1.5 million-square-foot facility there on a 78-acre parcel of land.

A recent report from DCD Intelligence shows the North American data center footprint is growing rapidly, with a 13 percent increase in data center outsourcing and colocation services taking place last year. The research firm estimates the market is worth around $8.8 billion with a 15 percent additional increase predicted by the end of the year.

North America already houses the largest global data center market, comprising approximately 107.6 million square feet of data center white space. And growth is expected to continue at a steady pace through 2016, fueled by customer demand for increasing IT capacity along with a desire to save money while accessing new technologies. Public administration, IT services and financial services are currently the biggest consumers of data center and colocation services, but uptake is expected to continue increasing across all industry verticals.

"We are thrilled to welcome RagingWire into the family of NTT Communications group companies," said Akira Arima, CEO of NTT Com. "Our combined customer base, which includes the top enterprises, government organizations, and Internet companies around the world will benefit from our expanded and enhanced data center and cloud solutions. RagingWire's patented data center power delivery design and technology along with their world-class customer service model will be important additions to our global solutions portfolio."

NTT Com offers the Nexcenter brand of enhanced data center services that include globally standardized SLAs as well as customer portals that provide a variety of cost-reducing features. These include advanced air conditioning systems, virtual-network-based services and hybrid cloud offerings. The company will take advantage of RagingWire’s patented power delivery systems as well as their EPA ENERGY STAR rated facilities for additional efficiencies and reliability.

Edited by Blaise McNamee

MSPToday Contributing Editor

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