Microsoft Drops $200 Million on 2 Datacenters in Santa Clara

In a move designed to expand infrastructure support for its Windows Live collection of services and products, Microsoft has leased two datacenter facilities located in Santa Clara from Digital Realty Trust. The two datacenters were previously controlled by Savvis. Initial reports pointing out that Microsoft had acquired the facilities are incorrect, as the Redmond company merely assumed both leases from Savvis. Digital Realty Trust – a company focused on corporate datacenters and Internet gateways management – leased the facilities to Microsoft until 2010. In Santa Clara, the Redmond company will now benefit from no less than "160,000 square feet of raised floor datacenter space" out of the total 300,000 square feet that it has rented.

"We are very pleased to welcome Microsoft as a direct tenant at these two Santa Clara facilities and look forward to continuing to build our relationship with them," commented Michael Foust, Chief Executive Officer of Digital Realty Trust.

"These new lease structures are an important part of our vision for a globally scaled datacenter infrastructure that will keep pace with user demand for innovative online services. Leasing the space directly from Digital Realty Trust will allow us to gain energy and operational efficiencies, helping us continue to run some of the largest services in the world," said Arne Josefsberg, general manager, infrastructure services, Microsoft. "We appreciate Digital Realty Trust's commitment to and focus on technology infrastructure properties and look forward to working with them in future."

At the end of June 26, Microsoft revealed that its Windows Live platform was evolving into its next phase. With the focus still set on a business strategy involving Software + Services, Microsoft promised to deliver a new Windows Live product suite. The Redmond company failed to offer a timetable, but did disclose that users should expect new offerings in the coming months. The announcement came concomitantly with the availability of the beta milestones for Windows Live Photo Gallery and Windows Live Folders. Microsoft also informed that it is working on a single installer for the entire line of Windows Live services and products.