Hostway Builds Next-Generation Data Center in Chicago's Loop

Hostway Corporation announced its expansion into a new state-of-the-art data center in Chicago's Boeing building.

Chicago, Illinois, January 18, 2006—Hostway Corporation, a leading provider of Web hosting and managed services, announced today that it will build a next-generation data center in downtown Chicago in response to strong customer growth. The new data center will be located in the Boeing building, along the west bank of the Chicago River.

SBC originally built the space for $200 million to support its mission-critical data center. Hostway will invest an additional $10 million to upgrade the location to meet industry-leading standards for physical security, network availability, fire suppression, cooling and power capacity. A large portion of the investment will go toward upgrading the facility's power and cooling plant to accommodate high power, high-density system installations.

"Our Web hosting and managed services business for enterprise customers is growing rapidly, and the cooling and power capacity requirements are rising faster than the industry predicted. The new data center will incorporate the latest design techniques and enable Hostway to continue to provide a fast, reliable and secure hosting environment for our customers," said Lucas Roh, CEO of Hostway.

The first phase of construction will expand Hostway's Chicago datacenter footprint by 50,000 square feet and customer server installations are expected to be operational by June 2006. The facility will also accommodate custom build-outs for customers requiring specialized solutions.

When completed, it will be one of the largest commercial data centers for colocation and managed hosting in downtown Chicago. It will bring Hostway's number of data centers up to 14. With geographically dispersed data centers, Hostway is able to offer disaster recovery and geographic load balancing solutions.

"This new data center, along with our expansion in both Europe and Asia, further solidifies our worldwide leadership position in the managed hosting space," said Roh.

About Hostway Corporation

Hostway Corporation provides domain name registration, Web hosting and ecommerce, colocation, managed dedicated hosting, SaaS hosting, Web design and online marketing services to over 1.4 million Web sites and 2 million customers worldwide. It operates over 250,000 square feet of state-of-the-art data centers that reduce the complexity and cost of Web-based technologies for small businesses and large enterprises. Founded in 1998, Hostway is one of the world’s largest Web hosting companies with a direct presence in 13 countries, 17 worldwide operation centers and more than 700 employees.