Blog Post

Silverlake Buys Intel's Data Center, Launches New Company

Silverlake Partners, a Silicon Valley-based private equity and buyout firm, says that it’s bought Intel’s (s INTC) data center in Santa Clara, Calif., and has made it a part of Vantage Data Centers, a new company  spearheaded by Jim Trout. Trout is a veteran of both the telecom and data center business, having founded CRG West, a telecom infrastructure company and TeraSpace Networks, a data center development company. From the release:

Vantage has acquired a fully operational data center formerly owned by Intel Corp in Santa Clara, CA, and will further develop the 18-acre site into a larger data center campus to supply the heavily constrained Silicon Valley market.  Vantage plans to redevelop the campus, located on Walsh Avenue, into a world-class wholesale data center site, with over 300,000 square feet of space across three buildings.

“Beyond general scale efficiencies, redevelopment within this large existing campus environment allows our company to collaborate with customers on their long term data center growth plans, providing ample room to expand within the campus and enabling distinctive customer support operations” said Jim Trout, the new CEO of Vantage Data Centers.  “Vantage will also deliver the lowest energy rates in the region, which combined with our scale and flexibility, will translate into significant potential cost savings for our customers.”

It’s not clear how much Silverlake has pumped into Vantage and how much Vantage paid for Intel’s data center. I’ve asked their spokesperson for details and will update the post accordingly. In the glory (or should I say gory) days of the Internet Bubble, Intel had expanded into web-hosting, but that experiment didn’t really pan out.