Apple is expanding its Internet infrastructure with a new data center in Silicon Valley, as it prepares to bring additional server and storage capacity online later this year. The new server space provides additional data center capacity at a time when Apple is rumored to be preparing a cloud computing service.
DuPont Fabros disclosed the Santa Clara lease in its first quarter earnings, but did not reveal the name of the tenant, which is consistent with its policies. In a conference call with analysts, company executives described the tenant as a "Fortune 50 technology company with excellent credit.” But multiple industry sources have since confirmed that the tenant is Apple.
The lease appears to be Apple's first investment in wholesale data center space. In the wholesale data center model, a tenant leases a dedicated, fully-built data center space. This approach is attractive for companies that need to deploy additional data center space quickly, as wholesale space can be delivered more rapidly than building a new data center.
Most wholesale leases are now priced in power capacity rather than square footage. The Silicon Valley lease works out to about 11,000 square feet of data center space. By comparison, the iDataCenter in Maiden, North Carolina is 500,000 square feet, and includes more than 184,000 square feet of data center space, according to records filed with local officials.
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