"This is the result of a search that we've been doing around Sacramento and other locations," the source says. "We've looked at places everywhere from Southern California to Arizona to the East Coast. We have legitimate sites in mind for several locations but haven't pulled the trigger on any of them yet. There is the potential that it could go somewhere else. Because of the opportunity here [where we already have operations], we decided to try this first."

RagingWire CEO George Macricostas says the expansion effort is in response to "explosive" growth in the demand for premier, enterprise-class data center space over the last couple of years. The tentative development timeline is to begin renovating the building in spring 2008 and have it up and running one year later.

The expansion would increase the company's data center floor space by more than 120,000 sf for a total presence of over 230,000 sf of raised floor in Sacramento. Last year, the company began adding 60,000 sf of data center floor capacity within its existing 200,000-sf facility, more than doubling its capacity, which now stands at approximately 110,000 sf.