Dallas-based CyrusOne Inc. (Nasdaq: CONE) is building a new data center on the far west side of San Antonio in Westover Hills, the company told investors, although it has yet to file construction paperwork.
In 2012, the company dove into the San Antonio market when it spent roughly $17 million to remodel an 83,000-square-foot facility, construction records show. In 2014, the company started building its second data center, a 196,000-square-foot facility that cost about $35 million. In 2016, the company filed construction paperwork in March for a $22 million data center in the same neighborhood, followed a few weeks later in May with filings for another $8.7 million data center.
CyrusOne, which operates more than 39 data centers around the world, including North Texas’ second largest, already operates at least two in the Westover Hills area: an 110,000-square-foot facility that can scale up to 20 megawatts and a 196,000-square-foot co-location space. There is an additional 20,000 square feet of Class A office space in the larger data center for customer employees to work on-site.
Recent state construction paperwork outlined an $8 million renovation of an existing data center for work expected to begin this month and wrap up in November. Dallas-based Corgan Associates Inc. is the design firm for the $8 million renovation. In total, CyrusOne has built more than 407,000 square feet in San Antonio, according to its website.
CyrusOne announced plans for a new data center that call for 184,000 square feet and the capacity to handle up to 24 megawatts, according to the company. This data center has been 100 percent preleased and would be CyrusOne’s fifth in San Antonio.
“Customer demand in the greater San Antonio metro area remains strong," Gary Wojtaszek, CEO of CyrusOne, said in a news release. "We will continue construction on our fourth data center in the area and will start efforts to construct another facility later in 2018."
The company did not immediately respond to requests for comment for this story.
CyrusOne, which is structured as a real estate investment trust, leases space in its data centers to other businesses. It sells room, power and security for racks of servers that collectively create what’s known as the cloud, which in turn can be used to store databases for businesses.
CyrusOne said affordable power through municipally-owned utility company CPS Energy is one differentiator in San Antonio. Meanwhile, the company also filed construction paperwork for a $50 million data center in Austin, which also has a city-owned utility company, along the 7200 block of Metropolis Drive, with estimated completion in 2020, records show.
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Ranked by Sq. Ft. of Local Raised Space
Rank Company Sq. Ft. of Local Raised Space 1 Digital Realty 530,000 2 CyrusOne Inc. 420,000 3 QTS 270,000 View This List