Three Projects in Works for i/o Data Centers

Phoenix-based data center operator i/o Data Centers, which announced its first data center today, has two other projects in the works as it begins assembling a planned regional network of enterprise facilities. In addition to i/o's initial project in Scottsdale, the company also plans a second data center in the Phoenix area and is evaluating sites in the Denver market, according to Tony Wanger, Senior Managing Director of i/o.

Wanger emphasized that while i/o Data Centers is a new company, it's not new to the data center business. The operations team behind i/o previously operated the Downtown Phoenix Technology Exchange (DPTE), the leading carrier hotel in the Phoenix market. "We've attracted significant financing," said Wanger. The company is backed by IO Capital, LLC, which includes many of the backers of the DPTE facility (including Sterling Capital) and has $100 million in assets.

The first project is a 100,000 square foot data center facility in the Perimeter Business Center in Scottsdale, with an adjoining 22,00 square foot office building that will serve as i/o's headquarters. Built in 2000 as a manufacturing site for DVDs, the site has two separate 12-megawatt electricity feeds. "We've literally got 2N power from our utility," said Wanger. "We've already got the generators and the power. It's a wonderful building, and the city of Scottsdale has been working with us."

i/o Data Centers plans to eventually to build more than 1 million square feet of premium data center space in up to 10 markets. Wanger said the facilities will be focused on providing exceptional uptime to corporate tenants, rather than search engines or Internet companies that will push the limits of current technologies. "We love Web companies, but the majority of our tenants have been large corporations," said Wanger.

"We run these data centers, so we approach this as an operator" rather than just a landlord, he added. "We're not looking for the biggest or most unqiue elements. At the end of the day, everything's about hitting that service level. Our focus is reliability. I'm happy running the world's greatest 150 watt to 200 watt (per square foot) data center. What our clients pay us for is the confidence that the site really works, all the time."

Wanger said i/o is actively working on opportunities in both Phienix and Denver, and that i/o's focus will likely be regional rather than national. "I think the demand for data centers is real," he said.