IBM to Build $86 Million Energy Efficient Data Center in Boulder as Part of Project Big Green

BOULDER, CO - IBM (NYSE: IBM) announced today an $86 million data center expansion that will add an additional 80,000 square feet of data center space to its Boulder facility. IBM will use state-of-the-art technology to build a “green data center” to help IBM and its clients reduce energy costs.

IBM is moving forward with the project in response to customer demand worldwide for green data centers, as well as commitments associated with the signing of a recent $480 million, five-year agreement with a major new U.S. customer account.

With the addition, the IBM Boulder location will expand its hardened raised floor operations from approximately 225,000 square feet to more than 300,000 square feet, making it one of the largest IBM data centers in the world. The largest portion of the expansion includes converting a 100,000 square foot office building on the Boulder campus into data center space.

“Selecting the Boulder site for data center expansion reinforces IBM’s commitment to Boulder and the state of Colorado,” said Larry Longseth, IBM Colorado senior state executive and IBM Boulder senior location executive. “Given our geographic location, existing infrastructure reliability history, suitable available building space, highly skilled support teams, and the fact Boulder is already home to one of the corporation’s premier data centers, this announcement just reaffirms IBM’s view of Boulder as one of its key strategic locations.”

The new data center will feature many of the same technologies that IBM announced as part of Project Big Green in May, when it unveiled new energy efficient products and services along with a plan to sharply reduce data center energy consumption.

IBM plans to install high density computing systems utilizing virtualization technology, along with its Cool Blue portfolio of energy efficient power and cooling technologies. These technologies, in conjunction with the energy efficient design and construction, will allow IBM to reduce its overall carbon footprint compared to standard data centers, and lessen the impact to the environment.

In support of the project, IBM has also been awarded incentive funding by both the State of Colorado and the City of Boulder, which played a role in IBM locating its new data center facility in Colorado.

The Colorado Office of Economic Development and International Trade has awarded IBM $632,000 and will work with IBM to establish a training program for the new data center workforce, as well as additional IBM employees.

“I applaud IBM for choosing its Boulder, Colorado facility for this important technology investment,” said Bill Ritter, Governor of the State of Colorado. “During the past six months, my administration has made tremendous progress sending a strong message to the rest of the country that Colorado will be among the renewable energy leaders around the world, and certainly here in the United States. This data center moves us another step closer to fulfilling that vision. IBM is Colorado’s largest technology employer, and we value the company’s commitment to attracting such investments and retaining quality jobs in Colorado.”

IBM Boulder has also met the intent and requirements of the city of Boulder’s flexible rebate incentive program -- one of four options from the city’s business incentive pilot program. This incentive covers a wide range of fees and taxes charged by the city, including permit and development review fees and equipment and construction use taxes. Once companies are approved for the program and pay fees to the city, those fees can be rebated up to the amount approved by the city manager.

“IBM has been a global leader in information technology for decades and has had a strong business and community presence in Boulder since 1965,” said Boulder City Manager Frank Bruno. “The city of Boulder values and acknowledges IBM’s continued positive impact on the Boulder economy and is pleased to award IBM a $100,000 rebate through our pilot business incentive program as they move forward on their exciting data center project.”

The expanded data center is scheduled to begin boarding customers in April of 2008.