Internap Plans $40 Million Colo Expansion

Citing strong demand, Internap Network Services (INAP) will spend $40 million to expand its colocation facilities in several key markets, the company said today. Internap didn't specify which cities were being targeted for investment, but the announcement is the latest in a series of facility expansions for Internap over the past two years, including several additions to its Seattle colo space, and expansions in Toronto, Los Angeles, Boston and New York.

"We are seeing unprecedented demand for Internap's data center services, particularly now that we are able to offer our customers a full suite of products and services from colocation and IP route optimization, to CDN and ad monetization services," said James DeBlasio, president and chief executive officer of Internap. "This expansion dramatically improves Internap's position in the marketplace as the Internet solutions provider of choice."

Internap said its capital expenditures are expected to be in the range of $45 to $55 million for 2007. The company expects the expansion costs will be spread over the next three to four calendar quarters, and said it wil seek funding as needed. Internap also reaffirmed its full year 2007 revenue guidance of 30 percent growth over 2006, and EBITDA guidance of $34 to $37 million.

Internap provides intelligent routing services that help bypass congestion points, overcome routing inefficiencies and optimize performance of applications including VoIP, video-conferencing and streaming audio and video.