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Issue 1, December 2008



Google’s third quarter cost of revenue rose by $4 million to $678 million with most of the rise being invested in data centers.

Google is still the darling of Wall Street FINANCE


Interxion raised $190 million (Є135 million) to build-out its footprint across the 11 countries where it operates. The credit facility was arranged by Fortis Bank (Nederland) B.V., Coöperatieve Rabobank Regio Schiphol U.A. and ING Bank N.V., with Fortis Bank (Nederland) B.V. acting as agent. The credit facility was announced as the firm’s interim report 2008 revealed revenue growth of 38% to Є64.6 million for the six months ending 30 June 2008. Adjusted EBITDA margins increased to 33% from 23% in the same period last year.


The company said that more than half of the 500 new staff joining the search giant in the last quarter were engineers.

approximately $142 per square foot, 104,000 square feet of Powered Base Building space at an average annual GAAP rental rate of $30 per square foot and 58,000 square feet of non-technical space leased at an average annual GAAP rental rate of approximately $23 per square foot.

Chris Crosby DRT Vice President

Digital Realty Trust (DRT) reported strong leasing activity for Q3 2008 saying signings reached “the highest volume of quarterly activity to date in terms of square footage and annualized GAAP rental revenues”. DRT said it commenced leases during the quarter of 351,000 square feet of space with 190,000 square feet of Turn-Key Data center space leased at an average annual GAAP rental rate of

The company signed Q3 leases of 478,000 square feet of space including 262,000 square feet of Turn-Key Data center space at an average rental rate of $155 per square foot and 171,000 square feet of Powered Base Building space at $47 per square foot. “We continued to experience robust leasing activity during the third quarter across our top markets, including New York Metro, Northern Virginia, Chicago, Phoenix, San Francisco, and Paris, France, which has shown particularly strong demand for our product over the past several months,” said DRT CEO Michael Foust. Chris Crosby, sales and technical services VP at DRT said: “Our Turn-Key Data center product has proven to be a cost effective, highly reliable IT infrastructure solution for our corporate and Internet enterprise customers as well as for the large system integrators.”


Rackspace has drawn an additional $150 million on its revolving line of credit backed by Comerica Bank, JPMorgan Chase, Wachovia Bank, Bank of America and The Frost National Bank. “We took this action as a prudent measure based on the uncertain economic conditions in the credit and bank markets. We continue to

Google’s capital expenditure for the quarter was $452 million and included “heavy” investment in data centers.

The firm said it would continue “investing heavily in construction, servers, and networking equipment, as we did in previous quarters,

maintain a strong capital position with the liquidity we need to grow our business over the long term. Including operating cash, we now have more than $250 million in cash, cash equivalents and short-term investments,” said Bruce Knooihuizen, CFO, Rackspace Hosting. At the end of the third quarter of 2008, Rackspace had $200 million outstanding on its line of credit.


Server and containerised data center maker Rackable Systems cut its revenue guidance for the remainder of the financial year. In a statement the company said revenue projections for fiscal 2008 would now be in the range of $275 million to $300 million with gross margins in the 16% - 18% range.

The firm said it expected to have cash or equivalents of between $175 million and $200 million. “The recent market downturn has been dramatic and has greatly impacted the timing of our customers’ buying decisions. The swift decline of the economy caused a demonstrable slow down in corporate purchasing as we entered September,” said Mark Barrenechea, CEO of Rackable Systems. “While we felt positive business momentum early in our third quarter, this abrupt financial and economic deterioration is impacting our ability to meet our previously provided fiscal 2008 outlook,” Barrenechea added.

FURTHER READING See page 31 Containerised data centers

and will continue to invest in infrastructure.” The company now employs around 20,000 people. Google passed $2 billion in profit in a single quarter for the first time.

FURTHER READING See Page 20 Google’s PUE numbers INDUSTRY


Kohler Co.’s Global Power Group acquired UK UPS system supplier Uninterruptible Power Supplies Ltd for an undisclosed sum. Dick Fotsch, Kohler Global Power Group president, said: “Bringing UPSL into our Global Power Group is an appropriate extension to our business. As we seek to become a full ‘systems’ supplier in the worldwide power generation market, UPSL’s incredible maintenance and service reputation in the UPS category is a strong complement to providing complete power solutions to our customers.” UPSL will become part of the Kohler Power Systems business, which manufactures generator sets up to 2800 kW, automatic transfer switches, controls, switchgear and generator packaging options.

EMERSON EMBRACES FUTURE Emerson will integrate Future Facilities’ 6SigmaDC computational fluid dynamics (CFD) tools with the Aperture VISTA infrastructure management system.

Emerson Network Power is also expanding the Liebert Data Center Assessment service globally. “These developments support our strategy to aggressively develop more sophisticated tools and services to help global businesses manage the increasing complexity of their data center infrastructure,” said Fred Stack, vice president of marketing, Liebert Precision Cooling. 13

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