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Re:

How ASB Combined Data Centers to Offer Nationwide Service in 2014

ASB’s 2014 combination of Fortune Data Centers and Infomart was intended to give customers broader geographic reach and one provider. The announcement did not measure service results or establish today’s ownership or footprint.
From TheFinanceBase Team2 min to read
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In October 2014, ASB Allegiance Real Estate Fund brought San Jose-based Fortune Data Centers and Dallas-based Infomart together under the Infomart Data Centers name. The stated goal was to give customers access to more locations through one provider and deliver consistent service across the country. The announcement described an intended benefit, not measured proof that service became more consistent.

What ASB combined

CRN reported on October 7, 2014, that ASB Allegiance Real Estate Fund combined Fortune Data Centers and Infomart into a single platform, Infomart Data Centers. Fortune was based in San Jose, while Infomart was based in Dallas. John Sheputis, Infomart Data Centers president and formerly Fortune Data Centers’ CEO, led the explanation of the plan. CRN’s October 7, 2014 report

Why the company said customers wanted one provider

Sheputis said customers were looking beyond a single market and wanted help serving needs in the central and Eastern United States. He described a preference for one national provider and fewer landlord relationships: “They say they have needs in the central and Eastern U.S., and are looking for one national provider to help. They want one property. They don’t want a lot of landlords.”

Combining the businesses was meant to respond to that request by putting multiple facilities under one company. Sheputis summarized the intended operating model this way: “So we are creating a portfolio of companies under one entity with consistent service.”

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Facilities and geographic reach cited in 2014

The report listed Infomart Data Centers facilities in Hillsboro, Oregon; San Jose, California; and Dallas, Texas. It also said ASB had acquired a former AOL data center in Ashburn, Virginia, earlier that year and was expanding it. These locations show the geographic footprint described in the 2014 account; they do not establish the company’s or facilities’ current ownership or operating status.

The real-estate investment rationale

Sheputis contrasted the capital required to build data centers with the investment horizons of venture capital and real-estate investors. CRN quoted him as saying data centers had cost about $10 million “in the past” and that the figure was $100 million “now.” He offered no methodology for those estimates, so they should be read as his 2014 characterization, not as current costs or independently verified market benchmarks.

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His stated point was that a large, long-lived infrastructure investment could be more compatible with real-estate investors’ long-term perspective than with venture capital. That was the company’s rationale for combining the businesses under a real-estate fund, not independent evidence that the approach reduced costs or improved results.

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What the announcement does—and does not—show

The announcement explains the strategy: consolidate existing data-center businesses, broaden the locations available to customers, and aim for consistent service through one provider. It does not report customer outcomes, quantify service improvements, or compare the combined company’s performance with the separate businesses. Nor does the 2014 account establish the organization’s present-day name, ownership, operations, or facility portfolio.

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