Apple buys data center originally built for MCI
Apple Computer has acquired an impressively-equipped but never used data center in Newark, Calif., the San Jose Business Journal reports.
The iPod maker is believed to have purchased the 107,000-square-foot facility for an estimated $45 million to $50 million -- illustrating rapidly rebounding demand for -- and the dwindling supply of -- Silicon Valley area data centers, according to the report.
The facility, which spans across 39800 and 39840 Eureka Drive, was originally conceived for communications company MCI WorldCom before getting mothballed after its 2001 completion.
According to the report, the most elaborate "Tier IV" centers such as the Newark facility have the highest levels of redundancy and security, and can cost upwards of $1,200 per square foot.
However, Apple's is believed to have paid in the vicinity of only $450 per foot by acquiring the facility from Dallas, Texas-based Stream Realty Partners, which manages an opportunistic investment fund aimed at buying data centers at bargain prices.
Gregg von Thaden of Colliers International in San Jose, Calif., Apple's primary Silicon Valley real estate negotiator, reportedly represented Apple in the Newark purchase-and-sale negotiations. Mr. von Thaden's was also integral in Apple's recent acquisition of a 116,830-square-foot office complex at 10400-10450 Ridgeview Ct. in its home town of Cupertino, Calif .
The Cupertino facility includes about 56,315 square feet leased directly from property owner Grosvenor International and 60,515 subleased from IBM, according to the report.
The iPod maker is believed to have purchased the 107,000-square-foot facility for an estimated $45 million to $50 million -- illustrating rapidly rebounding demand for -- and the dwindling supply of -- Silicon Valley area data centers, according to the report.
The facility, which spans across 39800 and 39840 Eureka Drive, was originally conceived for communications company MCI WorldCom before getting mothballed after its 2001 completion.
According to the report, the most elaborate "Tier IV" centers such as the Newark facility have the highest levels of redundancy and security, and can cost upwards of $1,200 per square foot.
However, Apple's is believed to have paid in the vicinity of only $450 per foot by acquiring the facility from Dallas, Texas-based Stream Realty Partners, which manages an opportunistic investment fund aimed at buying data centers at bargain prices.
Gregg von Thaden of Colliers International in San Jose, Calif., Apple's primary Silicon Valley real estate negotiator, reportedly represented Apple in the Newark purchase-and-sale negotiations. Mr. von Thaden's was also integral in Apple's recent acquisition of a 116,830-square-foot office complex at 10400-10450 Ridgeview Ct. in its home town of Cupertino, Calif .
The Cupertino facility includes about 56,315 square feet leased directly from property owner Grosvenor International and 60,515 subleased from IBM, according to the report.
Comments
Imagine the bandwidth wired into that baby!!!
All ready to be fitted out with xserves.....
Originally posted by Strawberry
I know I'm out of the infinite loop, but what the blazes is a data center?
A big building with lots of electricity, air conditioning and fat internet pipes where companies house servers, support people, etc.
Originally posted by CosmoNut
My question is, *WHEN* did they buy it? If it was a year ago, we might see something cool really soon. If it was a month ago, we may be waiting a while.
More info at:
http://sanjose.bizjournals.com/sanjo...27/story5.html
Originally posted by melgross
Apple doesn't use its own servers for iTunes. It uses Akamai, which it had made a big investment a few years ago (as I did).
It uses both. Long story but Akamai takes your data and serves it from the edge of the internet ... you still need a big fat farm for it.
Originally posted by melgross
Apple doesn't use its own servers for iTunes. It uses Akamai, which it had made a big investment a few years ago (as I did).
Correct. They either invested $100 or $150 million into Akamai.
Originally posted by Faasnat
Cool (I think). That's right near where I work.
Go over there on your lunch break and see if it's currently occupied... post some shots here or on Flickr.
This is very interesting. Could have ramifications for iTunes or iPhone!
Originally posted by Harald
It uses both. Long story but Akamai takes your data and serves it from the edge of the internet ... you still need a big fat farm for it.
Apple stores their content on their own servers, but it gets pushed to Akamai's. Apple could never have the iTunes store if it weren't for Akamai, without building their own immense server farm with the vast amount of bandwidth Akamai has.
Originally posted by CosmoNut
Isn't part of Akamai's deal storing tons of data at regional file distribution sites? Therefore when you download you actually download from the "nearest" site instead of the same site everybody else in the world downloads from?
Basically, yes.
Originally posted by furious_
why is apple always "the ipod maker"?
From this day forward, Apple shall be known as the "iPod-meister"!
Originally posted by SpamSandwich
From this day forward, Apple shall be known as the "iPod-meister"!
The leader of the band, so to speak.
If Apple is going to buy Disney, as the pundits are now saying, then they would need fast lines of communication between the headquarters, so that they can use all of that hi-def video conferencing OS X includes.