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June 29, 2007

Microsoft buying more data center horsepower

Posted by Benjamin J. Romano at 2:34 PM

This from The Associated Press:

Savvis Inc., a provider of Internet access, hosting and network services to businesses and federal government agencies, said Friday it sold assets related to two California data centers to Microsoft Corp. for $200 million.

Microsoft is the sole tenant of the data centers, which sit side-by-side in Santa Clara, Calif. The company is paying $190 million in cash, plus $10 million in previously advanced revenue. See details in this Savvis press release.

The two data centers cover about 250,000 square feet. Under a contract set to expire in 2010, Microsoft paid $16.5 million through the first six months of this year.

Microsoft is acquiring more data centers and building its own, such as the one it completed earlier this year in Quincy, Grant County. The data centers are used to power the company's Internet services, such as those it introduced earlier this week.

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