The Daily T1R – March 12, 2007
By Dan Golding

CyrusOne has specialized in providing an outsourced, high-density datacenter environment to energy industry clients and others. So far, their Houston facility, at 65k net sq ft, has been built out in three stages, each with a higher power and cooling density than the one before./p>

As CyrusOne nears full utilization on their Houston site, they are expanding by another 60k net sq ft. CEO David Ferdman has purchased the adjacent property, which will be built into a companion datacenter, with even higher power density and cooling capability (250 w/sq ft). To service both datacenters on the Houston campus, a central utility core will be built, which can provide both buildings with power and cooling, and redundancy in each system. CyrusOne expects the new datacenter will be ready to accept customers this summer.

CyrusOne is a great example of a managed hosting provider that has doggedly scrutinized an attractive vertical market (and is now reaping the benefit), while trying to diversify by marketing to firms in the supply chains of their major customers. T1R sees CyrusOne as an attractive acquisition target, and expects that some term sheets have already been passed around.