"This is the result of a search that we've been doing aroundSacramento and other locations," the source says. "We've looked atplaces everywhere from Southern California to Arizona to the EastCoast. We have legitimate sites in mind for several locations buthaven't pulled the trigger on any of them yet. There is thepotential that it could go somewhere else. Because of theopportunity here [where we already have operations], we decided totry this first."

RagingWire CEO George Macricostas says the expansion effort isin response to "explosive" growth in the demand for premier,enterprise-class data center space over the last couple of years.The tentative development timeline is to begin renovating thebuilding in spring 2008 and have it up and running one yearlater.

The expansion would increase the company's data center floorspace by more than 120,000 sf for a total presence of over 230,000sf of raised floor in Sacramento. Last year, the company beganadding 60,000 sf of data center floor capacity within its existing200,000-sf facility, more than doubling its capacity, which nowstands at approximately 110,000 sf.