Business & Real Estate

Sacramento data company expanding to Texas

Racks of servers at RagingWire’s high-tech data center in Natomas.
Racks of servers at RagingWire’s high-tech data center in Natomas. Sacramento Bee file

When a Japanese conglomerate bought controlling interest in Sacramento’s RagingWire Data Centers more than a year ago, its goal was to build a data company with a broad American footprint.

That vision is starting to become reality.

RagingWire, which hosts websites and other data for corporate clients, said Thursday it’s expanding into Texas. The Sacramento company expects to begin building a 200,000-square-foot data center next month on 42 acres it’s in the process of buying in Garland, northeast of Dallas.

It’s the first significant expansion for RagingWire since it sold an 80 percent stake to Japanese telecommunications conglomerate NTT Communications Corp. in 2013. The Japanese company paid $350 million for the stake.

NTT bought RagingWire “so we could build a U.S. platform,” said Doug Adams, chief revenue officer at RagingWire. “This is a continuation of that. ... This is the start of our expansion process.”

Adams said the data center that will break ground next month is just Phase One; the company has room to build a little more than 1 million square feet of space in Garland.

That would roughly double the company’s existing space. Its three data centers in Natomas cover a combined 650,000 square feet, and its facilities in Virginia will total around 300,000 square feet when a new center becomes operational in a few months. RagingWire has room for additional centers in Sacramento and Virginia.

Adams wouldn’t discuss the cost of the Texas center because the company no longer discloses such financial details. But the expense is surely in the tens of millions of dollars; RagingWire has said its newest Natomas center, which opened last spring, cost $90 million.

Adams added that RagingWire, with funding from NTT, eventually plans centers in Silicon Valley, Los Angeles, New York and Chicago.

“You want to make sure your data centers cover the U.S.,” he said. “This little Sacramento company is becoming a very large company very quickly.”

The company’s revenue is growing at about 20 percent a year, he said. RagingWire employs 400 workers, including 300 in Sacramento.

Adams said Garland city officials agreed to a discount on property taxes and electricity costs to lure RagingWire.

Dale Kasler: 916-321-1066, @dakasler