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biz.yahoo.com
Tuesday April 4, 6:00 am Eastern Time
Intel opens second data center in Virginia
PALO ALTO, Calif., April 4 (Reuters) - Intel Corp. (NasdaqNM:INTC - news) said on Tuesday it had opened its second data hosting center, this one in Virginia, the latest move by the world's biggest chipmaker's in its effort to develop new sources of sales beyond its core business of microprocessors, the brains of personal computers.
At a cost of $130 million when fully equipped, the center in Chantilly, Va., will employ as many as 250 people and will house as many as 10,000 computer servers, Intel said. Intel's first data center opened in September 1999 across the street from its headquarters in Santa Clara, Calif.
The company announced that month it was entering the fast-growing business of hosting Web sites and providing computing services to small- and medium-sized businesses. The Web hosting market is forecast to reach almost $18 billion in 2003 from from $1.8 billion in 1999, according to market research firm International Data Corp.
Intel said it expects to have more than 10 Internet data centers up and running by the end of this year. Three other centers, in the United Kingdom, Japan and Korea, are expected to be running by the end of June. The company will spend about $1 billion in its Intel Online Services unit by the end of 2001, mostly to build and equip data centers.
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