In run-up to expected IPO, network provider plans to convert landing stations to data centers (2/23/2010)
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Network operator Pacnet announced on Tuesday an ambitious plan,
whereby the company will step into the data center provider market,
converting the landing facilities of its submarine cable network in Asia
into data centers.
Pacnet CEO
Bill Barney told Reuters that the company would invest about
$300 million over the next three years, building 10 smaller data centers
and three large ones throughout Asia. According to the news service,
the move is part of the company’s diversification process as it prepares
for an IPO.
“Over the
past few years, we have seen exponential growth in the demand for data
center hosting services and customized applications,” Barney said in a
prepared statement. “Pacnet's cable landing facilities across
Asia are
equipped with massive power, space and capacity, therefore, it is a
natural step for us to move forward in building DLS (data landing
station) facilities to support immediate demands in the marketplace.”
In the
project’s initial phase, Pacnet is planning to launch three data centers
by the end of 2010, with additional sites coming online in 2011.
Locations and details for phase one were not disclosed on Tuesday.
Pacnet
currently operates landing facilities for its submarine fiber lines in Hong Kong, China, Singapore,
Japan, Korea, Taiwan and the
Philippines.
While
building the smaller facilities by itself, Pacnet is planning to partner
with other, at this point unnamed companies on the three larger core
data centers, each expected to cost $250 million or more.
Barney told Dow Jones Newswires that Pacnet was aiming to
raise $500 million through its IPO.
- wong chee tat :) |
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