Microsoft buys two datacenters for $200 million

Summary:Just before its fiscal 2007 came to a close last week, Microsoft snapped up two datacenters from Savvis, an infrastructure provider.

Just before its fiscal 2007 came to a close last week, Microsoft snapped up two datacenters from Savvis, an infrastructure provider.

Microsoft was the sole customer of the Savvis datacenters that it purchased. The datacenters are located in Santa Clara, Calif.

Update: A reader notes that, technically, Microsoft didn't buy these datacenters outright. Instead, "Microsoft simply acquired the leases from Savvis. Both buildings continue to be owned by Digital Realty Trust," reader John Starta said, citing the Digital Realty press release. "Digital Realty Trust had been leasing the buildings to Savvis, which in turn had a colocation contract with Microsoft. With this deal Microsoft is now the direct tenant."

Microsoft CEO Steve Ballmer told Wall Street over a year ago that the company planned to make substantial investments in the services area and would be hiring more people to work on its Live initiative, as well as beefing up its infrastructure that would power its burgeoning family of services.

Microsoft's fiscal 2008 commenced on July 1.

Topics: Microsoft, Data Centers

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Mary Jo Foley has covered the tech industry for 30 years for a variety of publications, including ZDNet, eWeek and Baseline. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008). She also is the cohost of the "Windows Weekly" podcast on the TWiT network. Got a tip? Se... Full Bio

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