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Oct. 31, 2008

Google says that it is delaying its long-awaited Oklahoma $600 million data center construction because of the current global economic slump. The stalling will push the project opening back from its original date early in 2009 to mid-2010.

The decision will put the one-hundred promised local jobs on hold at Google's 800 acre share of Mid-America Industrial Park in Pryor, Oklahoma. This delay puts into question the future of a handful of other Google data centers that are currently in production.

On Oct. 27, industrial park administrator Sanders Mitchell said "Google will activate and staff the server farm when the economy improves. The company at that time will revisit plans to construct a second building that would employ an additional 100 people."

While Google's market segment continues to see high demand, it appears that waning investor confidence has hit the data center industry, with capital to fund multi-million dollar infrastructure drying up rapidly. But data center developer Savvis has expressed optimism about the industry staying strong in spite of the current economic uncertainty.

A Google spokesperson says that Google's currently significant capacity will meet the demand for some time. "This means there is no need to make all our data centers operational from day one," the spokesperson said. "We anticipate that the Pryor Creek facility will come into use within the next 12 to 18 months. Google remains committed to and excited about operating this facility in Mayes County."

"Despite the uncertain economic situation that we faced in the third quarter, Savvis was able to deliver solid results, including twenty-seven percent year-over-year growth in total hosting revenue and year-over-year growth in adjusted EBITDA of 34 percent," Savvis chief executive officer Phil Koen said in a statement.

He added "while we are pleased with the positive third quarter results, our team remains mindful of the global macro-economic environment, as we focus on making the most of our recently completed global expansion plan by targeting free cash flow generation in 2009."

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Source: Google.