Managed Hosting: Latisys Expands With Chicago Data Center

Written by John Moore 1
July 21, 2010

Managed services companies have been opportunistically acquiring data centers in a still challenging economy. The latest example: Latisys, a managed services, hosting and colocation company, recently expanded in the Chicago area, snapping up a data center with a bit of history behind it…

The facility was originally an Exodus Communications data center. Exodus declared bankruptcy in 2001 amid the dot-com bust. Allstate Insurance Co. moved into Exodus’ center the following year. Allstate’s expiring lease opened the way for Latisys to become the latest occupant.

Don Goodwin, Latisys’ executive vice president, sales and marketing, said the company is pre-selling the new space and expects to start booking customers by the beginning of the fourth quarter. The expanded facility, dubbed Latisys CH2, aims to serve customers in the Chicago area and nearby Midwest markets. Goodwin said the center provides 32,000 square feet of raised-floor space.

The company cites growing demand in the region, with Fortune 500 companies, mid-market firms and government agencies providing opportunities. Latisys earlier this year won a $3.4 million contract to provide data center colocation services to the Illinois Department of Central Management Services.

Earlier this year, Latisys acquired data center space in the Washington, D.C. suburbs, purchasing Pryme Technologies in Ashburn, Va. The company previously purchased companies in Irvine, Calif., Denver, and Oakbrook, Ill.

On a related note, merger and acquisition chatter was quite loud at this week’s HostingCon conference in Austin, Texas. One rumor involved potential dealings between Softlayer and The Planet. Also, NCC International President Tom Millitzer hosted a session about cloud company valuations, mergers and acquisitions.

Additional reporting by Joe Panettieri. Sign up for MSPmentor’s weekly Enewsletter, Webcasts and Resource Center. And follow us via RSS, Facebook, Identi.ca; and Twitter. Plus, check out more MSP voices at www.MSPtweet.com.