Web hosting provider Rackspace is close to a $2 million dollar deal to buy 99 acres in the Port of Morrow, on which it plans to build a new data center, says a report by local newspaper The Oregonian.
According to the report, Rackspace has been considering the site for roughly a year. It had an option to purchase the property, but was reportedly considering other locations in Oregon.
City officials told the paper they’re expecting a deal to conclude within the next two weeks, although they’ve been told work won’t start on the location right away.
According to the paper, the data center business is booming in Oregon. With demand growing nationwide for data center space, and power capacity in the most popular locations, such as New York City, builders are turning to locations like Oregon, which have comparatively cheaper power and, in the case of Oregon specifically, can offer “enterprise zone” tax breaks, which exempt companies from paying property tax on servers, resulting in annual savings that can reach into the millions.
Rackspace has such an enterprise zone agreement in Morrow County for the next 15 years.
Amazon is reportedly one of the builders to have set up a data center in Port of morrow during the last year. And it is working on another. Facebook has a major data center in nearby Prineville, and is building another one. Apple, too, is building a data center nearby.
Rackspace’s new data center construction is a direct response to increasing demand for the comapany’s cloud services. Last week, Rackspace reported its Q2 earnings, marking a 5.9 percent increase in net revenue over Q1, and a 29 percent increase versus the same quarter last year.
Earlier in the week, Rackspace announced that it was moving its cloud hosting services entirely on to the OpenStack platform.
Following the platform transition, Rackspace made a blog post, detailing some of the functions of the new control panel it introduced along with the platform shift.
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