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Data giant QTS buys Herakles of Sacramento

Published: Saturday, Jan. 5, 2013 - 12:00 am | Page 6B

Sacramento's reputation as California's giant filing cabinet continues to grow.

This week, Quality Technology Services – better known as QTS, one of the nation's largest providers of data center facilities and managed services – said it completed the acquisition of Herakles LLC, which operates an Internet data center in Sacramento.

Financial terms of the acquisition were not disclosed.

QTS has corporate headquarters in Overland Park, Kan., and an operations headquarters in Suwanee, Ga., just outside Atlanta.

The Sacramento center at 1100 N. Market Blvd. comprises 92,000 square feet.

Officials said the Herakles facility will be fully integrated into QTS' data center portfolio as the QTS Sacramento Data Center.

Eric Jacobs, QTS executive vice president of the west region, said QTS plans to do its "best to retain the team" of nearly 20 local employees. Ultimately, Jacobs said, QTS hopes to grow the employee base and do further construction and development at the Sacramento site.

"We're excited to be in Sacramento," Jacobs said. "It's a site that we know our customers are excited about."

QTS also has a data center in Santa Clara.

Jacobs cited a reason that has long been mentioned by data center operators setting up shop in Sacramento: It's removed from the coastal earthquake fault lines.

Even during the depths of the recession, the Sacramento area added scores of jobs related to information technology. Reduced earthquake risk was cited, but so were lower land and utility prices, compared with the Bay Area.

Sprawling data farms sprang up in former Air Force bases and light industrial complexes in Rancho Cordova. Sacramento also is home to RagingWire Data Centers, which has a 500,000-square-foot data center on its local campus.

QTS CEO Chad Williams called Herakles "a great company, with first-class people and a high-quality customer base. The acquisition of this technologically advanced data center adds a strategically located asset to our portfolio."

"We're proud of what our team has accomplished at Herakles, and when it came time to transition the asset to the current ownership, it was important to us to make the right decision on behalf of our customers," said Lou Kirchner, president and CEO of Herakles. "QTS has an impeccable reputation in the data center industry for combining reliability with flexibility and product innovation."

QTS owns, operates and manages more than 3 million square feet of data center infrastructure and supports more than 700 customers.

© Copyright The Sacramento Bee. All rights reserved.

Read more articles by Mark Glover



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