Intel puts data centre expansion on ice

Intel is to stop investing in new data centres because of fears of a US recession, and poor revenue from its existing four centres.

The company said it has no further plans to expand on its four existing data centres, which cost between $50m and $100m. Revenue per customer has been lower than anticipated, and Richard Draycote, director of marketing services at Intel put that down to unrealistic targets and the dot-com fallout, but said 2001 should bring healthy growth. Intel also blamed the US economic slowdown, with Draycote confirming: "We have no near term plans to develop on the four data centres." Intel owns two data centres in the US as well as one in the UK and one in Japan, housing thousands of servers for processing data and internet transactions for third parties. Earlier this the week, Craig Barrett, CEO of Intel, announced the company will cut back on installing servers and other equipment in its data centres. He also announced that hiring will be rigidly controlled along with other cost-cutting measures such as the deferral of annual raises and cutting spending budgets by 30 per cent.