Local Investors Sell Fiber Network But Keep Chicago Data Center Interest

Demand growing for data centers despite failed deal
By: Sandra Guy  & Fran Spielman

Experts say a failed effort to convert a former Chicago Sun-Times printing plant into a center for housing Web-traffic hardware won’t hurt the city’s efforts to build more of the so-called data centers.

Investors who included executives at JDI Realty and Madison Dearborn Partners had reportedly paid $20 million for the 508,000-square-foot plant at 2800 S. Ashland Ave., which the Sun-Times shuttered two years ago. The investors planned a 10-year commitment of nearly $1 billion, including adding two new data centers at the site, according to an ordinance that the City Council passed on June 26. The ordinance would have let the property owners sell the site without repaying $7.5 million in city tax-increment financing that helped build it 14 years ago.

Yet, experts say, even if the printing plant never becomes a data center, demand for data centers will keep growing.

That’s because consumers’ and businesses’ demands for bandwidth-hungry video, big data, cloud computing and personalized media require enormous computer storage growth.

That’s where data centers come in. Data centers are cavernous, temperature-controlled, fortress-secure buildings that house the web servers, network services and storage equipment that companies need to transmit, store and back up data. They house the workhorses that undergird companies’ e-commerce, information technology services, financial and social transactions and other everyday functions.

See full article: http://www.suntimes.com/news/metro/21552865-418/demand-growing-for-data-centers-despite-failed-deal.html

Digital Captial Partners Featured in Data Center Knowledge

Two New Leases for Digital Capital in Chicago
By: Rich Miller

Digital Capital Partners at 725 South Wells, in Chicago.

Digital Capital Partners at 725 South Wells, in Chicago.

Digital Capital Partners has signed two new tenants to new leases at its data center at 725 S. Wells in Chicago, the company said today. OSF Health Care and ColocationZone have each signed long-term leases for space at the data center located in Chicago’s South Loop. The new leases bring the facility to 45 percent full.

“We’re excited about the Phase 2 expansion of our mission critical facility and have begun construction on four floors of data center and office space,” said Christopher Jensen, Principal and Co-Founder of DCP. ”Healthcare is one of the fastest growing sectors in the IT business and DCP is well positioned to become one of the premier healthcare-focused data centers. We’re also excited to have ColocationZone as the new manager of the building’s Meet-Me-Room, allowing our wholesale customers access to numerous carriers in our fiber-rich facility.”

OSF HealthCare is a network owned and operated by The Sisters of the Third Order of St. Francis, which consists of multiple medical centers around the country throughout Illinois and the Upper Peninsula of Michigan. OSF will be adding the 725 S. Wells location as a core location of their overall IT infrastructure.

“We are very excited to work with and join the DCP group,” said James Mormann, Senior Vice President and CIO for OSF Healthcare System. “Having an organization willing to work with the unique needs of healthcare systems to create solutions that deliver more cost effective and secure ways of operations is key. The DCP staff and solution are a great asset to not only the greater Chicago area but to the national landscape.”

ColocationZone, LLC, is a Chicago-based provider that focuses on retail colocation for small to medium-sized businesses. “Many businesses today do not have the space or funds to create the kind of environment that their critical IT infrastructure requires, and that’s where we come in,” said Kate Murawski, Vice President of Sales for ColocationZone. “DCP provided us with custom built data center space that will allow for amazing growth. The facility’s infrastructure and abundant connectivity made DCP an easy decision.”

725 S. Wells Street is an eight-story, 55,000 square foot data center which sits atop one of Chicago’s key fiber loops, with three separate fiber entrances and risers. The building is owned and operated by Digital Capital Partners, LLC, which offers custom solutions ranging from small suites to 3 megawatt spaces, each with a 24-inch raised floor.

See original article at: http://www.datacenterknowledge.com/archives/2013/09/03/two-new-leases-for-digital-capital-in-chicago/