Savvis plots mainland expansion after building new HK data centre

The global IT outsourcing services provider maps expansion after finishing project in HK

PUBLISHED : Friday, 07 September, 2012, 12:00am
UPDATED : Friday, 07 September, 2012, 3:29am

Savvis, a global information-technology outsourcing services provider, plans to enter the mainland's data centre market next year after completing the construction of its advanced new facility in Hong Kong.

Earlier this year, Missouri-based Savvis formed a joint venture with Digital Realty Trust, the world's largest builder and wholesale provider of data centres, to buy and redevelop a 164,000 square foot industrial site in Tseung Kwan O at a cost of up to US$150 million.

Mark Smith, the managing director of Savvis Asia, yesterday said the company's expansion efforts on the mainland would involve the development of new infrastructure in Shanghai and Beijing.

"We will likely get involved with a Chinese partner," he said.

Talks were continuing with potential partners, he said.

Smith said Savvis, a subsidiary of CenturyLink, the third-largest telecommunications services provider in the US, had focused its marketing efforts in the financial services, media, entertainment, publishing and retail sectors in Hong Kong and on the mainland.

A data centre is a secure, temperature-controlled facility equipped to house large-capacity server computers and data-storage systems, which have multiple power sources and high-bandwidth links to the internet.

Savvis, which posted US$1.04 billion in revenue last year, operates 52 data centres that serve nearly 2,500 corporate clients in 45 markets.

It also runs two small data centres in Hong Kong and its new joint-venture data centre, the first phase of which is expected to open in the second quarter of next year, will be its 53rd facility worldwide.

Expansion into the mainland would allow Savvis to tap into the world's second-largest economy, which also boasts the world's biggest and fastest-growing online population. At the end of June, the mainland had 538 million internet users.

Savvis must also catch up with its competitors, such as NTT, Equinix, and Fujitsu, which are ahead in establishing data centres on the mainland.

Research firm Gartner said Asia's data centre services market was worth US$10 billion last year.