QTS Raises $25M, Expands in Santa Clara

Not a week seems to pass without another aggressive move in the datacenter space.  Today Quality Technology Services took another swing.  The company announced the addition of another 70,000 square feet in its Santa Clara facility, along with 15MW of power and SAS-70 type II certification.  If there was any doubt there is more expansion down the line, QTS’s Chairman and CEO Chad Williams had this to say: 

“QTS has seen an explosion in interest and a corollary growth in demand for the past few years.  As such, we are continuing down a path of prudent acquisition and expansions to adequately meet the needs of our customers, both today and in the future.”

QTS also announced that they have raised another $25M to fund their expansion.  The investment from General Atlantic follows a $150M capital injection last Fall, an expansion of its Atlanta facility over the Winter,  and the purchase of that giant former Qimonda plant down in Richmond this Spring.

QTS and others in the sector are moving quickly to remind us that Equinix is not the only game in town.  I wonder how long this party will last, i.e. how long will it be until the financial guys find another high tech place to park their money?  Or with the arrival of cloud computing is this just the start?

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Categories: Datacenter · Financials