Before making the decision to build its own facility, Data Foundry completed an exhaustive search of existing buildings in Austin. "When you looking at existing buildings that weren't meant to be data centers, they don't work for the long-term," says Sunday Yokubaitis, the company's general counsel. "You have to make too many compromises, so we decided to build our own building so we can provide the highest quality service with no compromises."

Last fall, Data Foundry acquired 40 acres near Austin-Bergstrom International Airport to develop its data center campus, Menking says. The site is served by two power sub-stations, and more than 10 data providers are nearby.

Moreover, Austin is a sought-after location for data centers due to its low incidence of natural disasters and reliable, cost effective power available through the state’s independent power grid. The Capital City's reputation as a major technology center also ensures access to a broad base of well-qualified employees for the new data center.

Data Foundry plans to break ground next month on the first phase of the data center, which will consist of 130,000 square feet. It is scheduled for completion in second quarter 2011, and the second phase will add the remaining 120,000 square feet.

The company's new facility will be the only purpose-built, carrier-neutral data center in the Central Texas region. (A carrier-neutral approach enables customers to connect with all major carriers.) It will have the ability to deliver over 100 megawatts of power and will offer end-to-end underground power supply.

Designed by Gensler, the data center will support customers from a single cabinet up to multi-megawatt deployments. CCG Facilities Integration, an engineering and architecture firm specializing in the mission-critical industry, will provide engineering services for the project. Holder Construction Co., a leading data center builder across Texas and the U.S., will construct the new facility.

Yokubaitis tells GlobeSt. that there hasn't been a data center like Data Foundry's built in Austin in more than 10 years. "We are creating a first-class facility that we think will make Austin a destination," he explains.

Menking adds: "Austin is our home base, and this new data center will be a resource for the city in the same way the airport is resource. It will put Austin on par with any other data center market in the world, and we think it will draw national companies to locate their data center operations here."

Data Foundry expects to build out the remaining 28 acres of its campus over the next several years and hopes to develop build-to-suit data centers for corporate users, Menking says. The company will work with local and national brokers to attract both large and small users.

Currently, Data Foundry is working with its lender to obtain construction financing. The company will provide equity for the project. "The underlying company is completely debt free, and we have substantial cash flow to support the project," Menking says.