Microsoft to build 1 billion dollar data center in San Antonio.

[Buddy Holly]

Microsoft has eye on S.A.

Web Posted: 12/15/2006 11:28 PM CST

L.A. Lorek
Express-News Business Writer

Microsoft Corp. confirmed Friday that it's looking at San Antonio for a new building, and people close to the deal say the software giant is close to announcing plans to build a huge $980 million data center in Westover Hills.

Microsoft is looking to create a 470,000-square-foot structure that would employ about 100 people and would be next to the $68 million Lowe's Cos. Inc.'s data center announced earlier this year, according to a source with knowledge of the project. The data centers will be near each other so they can share some infrastructure related to cooling the buildings, he said.

Microsoft declined to give any details.

"We can confirm that we are looking at San Antonio for a potential future operations facility," Patrick McLaughlin, Microsoft spokesman, wrote in an e-mail. "We are still working on our plans in San Antonio so we do not have detailed information to share at this time."

Microsoft's decision to locate here would be an economic windfall for the West Side, and its effect would be felt throughout the community. Data centers cost millions to build, employ highly paid technical workers, consume massive amounts of power, and contribute to the local, state and school tax base.

The company is attracted to the San Antonio area because of its reliable and relatively inexpensive power, according to the source, who requested anonymity. Microsoft's data center could consume more electricity than Toyota Motor Manufacturing of Texas' new truck plant.

Since CPS Energy supplies 14 percent of its revenues to the city, such a large customer would provide substantial money to San Antonio's general fund.

David Marquez, Bexar County economic development director, says the project looks good.

"It's definitely a win we want," Marquez said. "It's still in process. Some work is still going on behind the scenes."

Robert Peche, interim director of the San Antonio Economic Development Department, could not be reached for comment.

The city and county have put together incentive packages, including tax abatements, to lure Microsoft here, Marquez said.

"It appears everything is moving right," Bexar County Judge Nelson Wolff said. "We hope to have something to announce after the first of the year."

In the past few years, a boom has gone on nationwide with technology companies and other businesses scrambling to build new data centers to house a growing amount of computer data — everything from e-commerce sites to e-mail services and video and music downloads on the Internet.

Already, Rackspace Managed Hosting and such companies as Capital Group and USAA have data centers in San Antonio.

Such sites often are massive. Google built a massive data center in Oregon. Microsoft and Yahoo are building big data centers in Central Washington.

Data centers look like giant warehouses that hold hundreds of computers with massive air conditioning units, large back-up generators and the latest high-tech security features. Some of the fortress-like structures have foot-thick walls, biometric access controls and remote monitoring systems.

http://www.mysanantonio.com/business/stories/MYSA121606.01A.Microsoft.2f35ff4.html

[Zombie]

I heard abou that at on the 10'oclock news.
Come on now, we couldn't rebuild planes what makes you think we can support Microsoft?

[Buddy Holly]

Rebuild planes?

What does that have to do with a data center?

[Zombie]

Rebuild planes?

What does that have to do with a data center?
Kelly AFB Was closed because of the timely and accuracy of the repair of the Planes At Kelly.

[Buddy Holly]

Kelly AFB Was closed because of the timely and accuracy of the repair of the Planes At Kelly.

Kelly was closed because of BRAC. But again, what does that have to do with a data center?

You understand what a data center is, right?

[Zombie]

Kelly was closed because of BRAC. But again, what does that have to do with a data center?

You understand what a data center is, right?
DO you UNDERSTAND why BRAC closed Kelly?

SA is a Blue collar city not White COllar.

[midgetonadonkey]

Only a billion?

[Buddy Holly]

DO you UNDERSTAND why BRAC closed Kelly?

Because BRAC wanted to consolidated all work with other air force bases.


SA is a Blue collar city not White COllar.

No it's not, well, maybe if everyone was as "smart" as you it would be, but unfortunately they're not lucky enough.

Again, what does anything you're not making sense with have to do with the data center?

[TDMVPDPOY]

are there alot of curry indians in the area??? data center = call center :(

[leemajors]

are there alot of curry indians in the area??? data center = call center :(

a data center is not necessarily a call center... the article said only around 100 people would be employed. microsoft farms out its call centers to companies like harte hanks anyway.

[ChumpDumper]

The land is cheap and they could probably headhunt 100 people from Austin in one job fair.

[CubanMustGo]

A data center houses a company's servers and data warehouse. MS can probably save a bundle on construction/land/electricity costs by building it in SA to offset the extra effort needed to bring in the "100" people required. SA has some of the least expensive electricity in the state. All the people who complained about the STNP back in the 70s/80s seem pretty quiet with your bills being about half of what they are in Dallas or Houston ...

Most companies these days are building more and more "lights out" data centers, meaning that there aren't a lot of people actually on-site doing much in the way of work. The system admins are in places like Bangalore and about all you have people coming in for are the physical tasks like building new servers, adding disk capacity, repairing devices, and troubleshooting problems. A lot of that work will probably be contracted out anyway.

[greywheel]

Microsoft will not need 100 new hires. They will not staff the place with all new hires, some will be brought in from other locations.
I find it funny that people think that San Antonio does not have 100 qualified people when there is a population over 1 million living there. I am sure Microsoft could hire some IT people away from USAA, if they want to. Or just time the opening with the next USAA "reorg" and get them cheap.

[katyon6th]

a data center is not necessarily a call center... the article said only around 100 people would be employed. microsoft farms out its call centers to companies like harte hanks anyway.

Yep, Harte Hanks, which my company staffs temps for ... the cycle continues.

[Buddy Holly]

are there alot of curry indians in the area??? data center = call center :(

Data center does not equal a call center.

Data center (http://en.wikipedia.org/wiki/Data_center)

Call center (http://en.wikipedia.org/wiki/Call_centre)

[Aggie Hoopsfan]

DO you UNDERSTAND why BRAC closed Kelly?

SA is a Blue collar city not White COllar.

Do you understand the staffing needs of a facility like this? Maybe a 100 folks.

And it would be relatively easy for MS to move some folks in for that job. The cost of living in SA is ridiculously low compared to the northwest, and they've got Austin and Dallas right up I-35 if they need to do a little recruiting.

[Buddy Holly]

a data center is not necessarily a call center...

It's not one period.

They're two different things completely. The only thing they have in common is the fact they end with "center."

[Aggie Hoopsfan]

are there alot of curry indians in the area??? data center = call center :(

No, it doesn't.

[Aggie Hoopsfan]

To put this in terms that maybe some of you folks will understand...

Call center = place where support calls are received.

Data center = server hosting. I.E., for Microsoft this would be things like their Hotmail email servers, Netmeeting servers, MS Messenger routing, Xbox Live servers, and off-site backups of all their code.

[Buddy Holly]

Call center = room with people taking or making calls.

Data center = room full of computers storing everyday data.

Call center = crappy pay.

Data center = Extremely good pay.

[ashbeeigh]

From what I understood, from the report on the news, was that microsfot was not 100% on creating a data center at the Westover Hills location. They still had other places across the nation in mind. They were just checking things out.

The location was being scouted because they could share the cooling devices with the Lowes Data Center.

[leemajors]

Call center = room with people taking or making calls.

Data center = room full of computers storing everyday data.

Call center = crappy pay.

Data center = Extremely good pay.

if you're a contractor in a call center, the pay is crappy. if you're badged it can be quite good.

[braeden0613]

DO you UNDERSTAND why BRAC closed Kelly?

SA is a Blue collar city not White COllar.
Some people believe its a blue collar city because every time we get news of something new coming to SA, all you people bring out the negativity saying, "Oh, we could never support that here". I'm sure they can find 100 qualified people in SA is they want to.

[Buddy Holly]

From what I understood, from the report on the news, was that microsfot was not 100% on creating a data center at the Westover Hills location. They still had other places across the nation in mind. They were just checking things out.

The location was being scouted because they could share the cooling devices with the Lowes Data Center.

Actually, it's pretty much a done deal.

Don't pay attention to any local news stations. They're all suck very bad.

[CosmicCowboy]

Actually, it's pretty much a done deal.

Don't pay attention to any local news stations. They're all suck very bad.

Why does Buddy saying it's a "done deal" not give me a lot of confidence?...LOL

[2Blonde]

Zombie,
You're an idiot. BRAC has nothing to do with whether SA is a blue collar or a white collar town. I have lived in more than one military base town during BRAC closure hearings while my husband was active duty and blue collar towns fair just as well. It's about politics and location. They look at where they can consolidate the most functions the most efficiently.

As far as the MS Data Center. Even if it only employs 100 people it is going to bring much more to SA. If they use the amount of energy they are projecting in the article then that would mean an increase in jobs in our local energy industry. It would also be potential for other companies to relocate here to supply MS or for companies that are already here to increase staff to service MS. There will be lots of trickle down jobs as well. Businesses need everything...janitorial services, paper suppliers, catering services, etc.

[johnsmith]

Hey Buddy Holly, are there going to be any new Chili's around this data center?

[2Blonde]

Hey Buddy Holly, are there going to be any new Chili's around this data center?
:lol You can probably bank on that. I think there are more Chili's than gas stations in SA. :hungry:

[Shelly]

Why does Buddy saying it's a "done deal" not give me a lot of confidence?...LOL

Has the eastside (?) been developed yet?

[spurster]

Zombie,
You're an idiot.

Well, duh!

[boutons_]

"Even if it only employs 100 people it is going to bring much more to SA"

After it's built (if local firms win the bids), it's a capital/energy intensive operation, not labor-intensive, at least not locally. They are locating here for geographical diversity (no other MS datacenter here or nearby), and for the cheap electricity, which is a huge operational cost.

I bet of the 100 jobs, 85 will be low-salaried screwdriver/cable/maintenance monkeys replacing bad gear, hooking up new gear (rack cabinets probably stuffed at distant factory), etc. All the really brainy design/tech jobs will be elsewhere, remotely administering the SA facility, from Redmond, India, etc.

I don't see the data center's monthly energy consumption creating a single job. The electricity comes from the CPS grid, not from illegal immigrants peddling away on exercise bicycles.

catering? for 100 people? janitorial? the air is filtered, no dirt let into the building.

The high-tech equipment will be shipped in from Cisco, Dell, HP, IBM, China, none of which designed or built here.

[johnsmith]

I bet of the 100 jobs, 85 will be low-salaried screwdriver/cable/maintenance monkeys replacing bad gear, hooking up new gear (rack cabinets probably stuffed at distant factory), etc.


Hey, looks like you'll finally be able to get a job then.

[1369]

Bouton hates San Antonio.

[johnsmith]

Bouton hates San Antonio.


From what I've read of Boutons, he hates everything.

[PM5K]

http://www.austinpowers.com/objects/images/evilpinky.jpg

[ShoogarBear]

^already been used once today.

[ashbeeigh]

Actually, it's pretty much a done deal.

Don't pay attention to any local news stations. They're all suck very bad.

I'll believe you when your grammar's right. But until then, it's not a "done deal."

[Buddy Holly]

I'll believe you when your grammar's right. But until then, it's not a "done deal."

You mean the "they're all" portion of the post? You're right, I'm a collect dumbass, excuse me for preparing my brain to say one thing and having by fingers execute something else.

Now Ahole or ashbee, read up to they're all and imagine what I was originally going to say. It would have rhymed with “bull of bit."

[MannyIsGod]

Buddy Holly >>>> Ashbeigh.

[ChumpDumper]

Collect?

[ashbeeigh]

You mean the "they're all" portion of the post? You're right, I'm a collect dumbass, excuse me for preparing my brain to say one thing and having by fingers execute something else.

Now Ahole or ashbee, read up to they're all and imagine what I was originally going to say. It would have rhymed with “bull of bit."

I'm just giving you crap. I'm sure your sources are better then whatever source I heard the information from.

[Buddy Holly]

Collect?

I've been caught again. I type way too fast for my brain. I also screwed up on "my."

[Buddy Holly]

Buddy Holly >>>> Ashbeigh.

That's not very difficult to achieve.

[boutons_]

Microsoft Building Green Data Center

Microsoft is using green technologies in its new data centers, including one in San Antonio.

Nancy Gohring, IDG News Service
Tuesday, July 31, 2007 09:00 AM PDT

Microsoft Corp. is relying on green technologies in its newest data centers, including one in San Antonio where it is breaking ground on Monday.

The San Antonio building, one of several in the works at various locations, will be 500,000 square feet and contain tens of thousands of servers, said Michael Manos, senior director of data centers at Microsoft. The company announced it would build the center in San Antonio earlier this year.

The first phase of the facility will be operational in July next year, he said.

Microsoft's software plus services and Windows Live initiatives are driving these construction efforts, which will support the online services, he said. Microsoft is not alone among Internet services companies building new facilities to support hosted services. Google Inc. and Yahoo Inc. have also both announced development of new large data centers.

Microsoft uses 31 different criteria in choosing data center sites. While Manos couldn't describe them all for competitive reasons, access to environmentally friendly resources is one.

In San Antonio, Microsoft plans to use recycled water, sometimes called gray water, in its cooling systems. The option, which allows the use of water that is not fresh or drinkable but is not contaminated by any toxic substances, is offered by the local utility. It is considered environmentally friendly because it reduces demands for fresh water and doesn't consume the energy required to purify it at waste water treatment sites.

In addition, a significant portion of electricity in Texas is generated by wind, and that clean source of energy was attractive to Microsoft, Manos said.

( ???? )

The San Antonio facility will be one-third the size of a massive data center that Microsoft is building in Quincy, Washington. That center will be nearly carbon neutral, meaning it doesn't produce more carbon than it consumes. Electricity used at the Quincy data center will be generated by hydroelectric plants, which are commmon in Western Washington. The center won't quite be totally carbon neutral, however, because the company uses diesel-powered generators for backup and must test those now and again, Manos said.

Last week Microsoft confirmed that its construction company in Quincy switched to biodiesel to fuel cement trucks and other equipment in order to solve a health and safety problem. At that site, builders erected the walls and ceiling of the structure before laying the floor. Cement trucks, originally using petrodiesel fuel, were letting off exhaust that would be harmful to workers who were inside the enclosed building. Switching to biodiesel, which has cleaner exhaust, solved the health and safety issue at the site.

Manos wasn't sure if Microsoft would continue to use biodiesel at the Quincy site or other locations. Generally, the company plans to continue using such green technologies. "There is a great alignment between going green and being economical," he said.

At some data centers, Microsoft has systems that use outside air, if it's cool enough, to help regulate the temperature in the building rather than solely using air cooling systems.

About 75 jobs will be available at the San Antonio facility. But Microsoft likes to consider the broader affect on local economies. The facilities often bring business to other nearby companies, such as those that might service generators. In addition, not long after Microsoft announced that it was building in Quincy, Yahoo and Intuit Inc. also decided to build data centers there.

Microsoft has other new data centers "in the works," but none that it is ready to talk about just yet, Manos said.

http://www.pcworld.com/printable/article/id,135241/printable.html

[CubanMustGo]

That's the problem with modern data centers ... after you build them they don't bring many jobs to an area. But hey, construction workers make real money too and hopefully there will be more to come. SA's low utility costs (relative to Texas especially) help make them a player in the electric-intensive game.

And yeah, boutons_, Texas has more wind-powered electricity generation than any other state in the Union and lots more is coming on-line.

[Slomo]

This happens as timvp is thinking about upgrading SpursTalk.

Coincidence?

I don't think so!

[2centsworth]

I'm just giving you crap. I'm sure your sources are better then whatever source I heard the information from.
Do you believe in ending sentences with prepositions?

Just giving you a hard time. My grammer sucks.

[SpursWoman]

( ???? )

You've never seen the wind farms in Galveston? :)

http://houstonist.com/attachments/houston_jim/030306_windmills.jpg

[TheWriter]

Microsoft talks of a $1 billion stake in S.A.

Web Posted: 07/30/2007 07:38 PM CDT

L.A. Lorek
Express-News Business Writer

Under mostly sunny skies Monday, a Microsoft Corp. executive conjured up the vision of a cloud to describe how the company's $550 million data center may lead to a $1 billion San Antonio investment.

The data center is a virtual cloud consisting of tens of thousands of computer servers that will contain the digital data for the world's largest software company. The 470,000-square-foot structure that Turner Construction Co. began building in April will contain Microsoft's digital brains.

And that may be just the beginning.

Microsoft has another identical building planned for San Antonio, said Debra Chrapaty, Microsoft's corporate vice president for global foundation services. The next phase could bring the software giant's investment in San Antonio closer to $1 billion.

"We're building the cloud," Chrapaty said. "The cloud is not the cloud in the sky, it's what we're about to break ground on in San Antonio."

The new building on a 44-acre site in Westover Hills will serve up e-mail accounts, Web pages, instant messages, photos, videos, software programs and search information to millions of Internet surfers worldwide. Microsoft has more than 280 million Hotmail customers, and its computer systems handle 8 billion message transactions per day, Chrapaty said.

Chrapaty, who wore a white shirt, khaki pants and cowboy boots, surveyed the job site with the rest of the Microsoft officials in a white stretch Hummer. She also operated the milling machine, which grinds up rock and dirt. Construction is well under way at the site, and the center is expected to go live by December 2008, Chrapaty said.

The San Antonio data center will look like a mirror copy of Microsoft's 470,000-square-foot data center in Quincy, Wash. That site went live a few months ago.

"We've been anticipating this day for months now," said John Montford, chairman of the San Antonio Economic Development Foundation. "In addition to all the construction work, this Microsoft data center is expected to employ 75 data center workers in some very good jobs."

It took more than two years to bring Microsoft's data center to San Antonio, but the effort paid off, said Bexar County Judge Nelson Wolff. City and county officials, the San Antonio Economic Development Foundation, CPS Energy and the San Antonio Water System all worked together to bring the project here, he said. In San Antonio, Microsoft will receive $32.6 million in local incentives over 10 years.

Six City Council members turned out for the event, along with more than 100 officials and businesspeople.

"From the city of San Antonio, thank you for a $600 million investment in San Antonio, adding to the $6 billion in technology going on here," said Kevin Wolff, city councilman and mayor pro tem.

Mayor Phil Hardberger, who was unable to attend the event because of a delayed flight, said in a news release, "Microsoft's investment already has raised the profile of San Antonio as a place for technology companies to do business."

Already, San Antonio is forming a cluster of data center projects. Since Microsoft announced its plans in January, Christus Health, the National Security Agency and Stream Realty all have announced new data center projects. Lowe's Corp. also is building one in Westover Hills.

Charles "Marty" Wender, the developer of Westover Hills, is working with 15 other companies looking at sites for similar projects in San Antonio.

"Microsoft is like the gold standard," Wender said. "Getting endorsed by a company like Microsoft is huge."

CPS Energy plans to build a substation near the Microsoft site. Even with the addition of Microsoft, the utility has plenty of power left for other data center projects eyeing San Antonio, said Milton Lee, CPS Energy general manager and chief executive.

"We plan for customers all the time," Lee said. "I'm looking at electric and gas systems 20 to 30 years out."

In addition to the power, Microsoft will use 500 acre-feet per year of recycled water, said David E. Chardavoyne, chief executive and president of SAWS.

"Recycled water is a low-cost, environmentally proactive way to cool large buildings," he said.

Inexpensive power and access to water are two of the 30 criteria that Microsoft considered before choosing San Antonio, Chrapaty said.

"We spend a lot of time down in Austin," Chrapaty said. "We're really excited to be able to add to the technical community in San Antonio."

http://www.mysanantonio.com/business/stories/MYSA073107.01E.MIcrosoft.29171ed.html

[boutons_]

"a significant portion of electricity in Texas is generated by wind,"

anybody know the percentage?

Looks like there is some for SA, but significant portion?


http://www.awea.org/projects/texas.html

[exstatic]

Microsoft is looking to create a 470,000-square-foot structure that would employ about 100 people and would be next to the $68 million Lowe's Cos. Inc.'s data center announced earlier this year, according to a source with knowledge of the project.
3 parking attendants, 1 front desk clerk, 48 security guards, a janitorial staff of 30, 10 cafeteria workers, and 18 secretaries.

[CubanMustGo]

"a significant portion of electricity in Texas is generated by wind,"

anybody know the percentage?

Looks like there is some for SA, but significant portion?

http://www.seco.cpa.state.tx.us/re_wind.htm


For the past two years, Texas has been the top wind producer in the United States. As of April 2007, Texas had an installed wind generating capacity of 2,768 megawatts (MW) with more than 1,000 MW of new wind capacity under construction. According to the American Wind Energy Association (AWEA), U.S. wind power generating capacity increased by 27% in 2006 and is expected to increase an additional 26% (more than 3,000 MW) in 2007 due to strong demand, investment of private capital, and the support of federal and state governments. AWEA predicts that two-thirds of that growth will occur in Texas, as three of the five largest wind farms in the nation are located in Texas.

and http://utopia.utexas.edu/articles/tbr/energy.html?sec=business&sub=economics


As for Texas, the total net 2002 summer, electric generating capacity (all sectors) was about 94,488 MW, of which fossil fuel, generation was 93 percent, nuclear 5 percent, hydroelectric about 0.7 percent, and non-hydro renewables about 1.3 percent.

So it's probably fairly safe to say that wind generation in 2007 is around 2.5% of total energy production with another 1% under construction.

Also of interest from the second article:


Texas ranks first in the nation for its total renewable energy potential, which stems from its diverse climate and vast size. In addition, each of the state's renewable resources, such as solar, wind, and biomass potential, rank among the top in the nation. The wind energy potential of Texas is about 136,000 MW, a very close second to top-ranked North Dakota. This is almost twice the state's electricity speak demand. By the end of 2003, U.S. cumulative wind energy capacity was 6,374 MW, with Texas, at 1,293 MW, ranking second for the most cumulative wind power capacity in the nation.

Similarly, Texas lists among the states with the greatest solar potential. South and West Texas and the Panhandle provide the best settings for large-scale wind and solar projects, and the best biomass resources are located in East Texas and the Panhandle. By developing these extensive handle renewable sources of energy in the future, Texas could not only provide for its own energy needs, but also become one of the largest exporters of renewable energy.

By more than doubling wind capacity since 2003, Texas has overtaken California for the lead in wind energy production.

[Mark in Austin]

Chrapaty, who wore a white shirt, khaki pants and cowboy boots, surveyed the job site with the rest of the Microsoft officials in a white stretch Hummer.

:lol I guess the green thinking at Microsoft hasn't permeated all levels of the company yet...

[boutons_]

Rackspace vows to add 3,000 jobs

Web Posted: 08/01/2007 11:22 PM CDT

L.A. Lorek
Express-News Business Writer

The San Antonio City Council today will consider a package of economic incentives for Rackspace Managed Hosting to add more than 3,000 jobs and move its operations to the Windsor Park Mall.

The deal involves the city giving taxing rights for 221 acres, including the mall site, to the city of Windcrest and the Windcrest Economic Development Corp. The city and development corporation would then lease the mall back to Rackspace for 30 years.

"We feel like going to the mall is a crazy good idea," said Lanham Napier, Rackspace's chief executive officer. "It's great that we can go into an area that has been struggling and add economic vitality to it. We want to do to San Antonio what Dell did to Austin."

Rackspace provides Web hosting services to businesses and has grown quickly since its 1998 founding.

Under the deal being considered, Rackspace would locate 2,000 employees to the mall by the end of 2009 and would expand to 4,500 jobs, with an average salary of $51,000, by 2012. It has 1,300 San Antonio employees now.


If Rackspace does not meet the goals for jobs and average salary, it will have to pay its full tax bill.

Rackspace, which was started here by three Trinity University students, considered moving its operations to other Texas cities and to North Carolina before deciding on the Windsor Park Mall location, Napier said.

"We think it's the right long-term home," he said. "The first thing is that building was designed to create a sense of community once you are inside it. We think the mall has great infrastructure to it."

In addition to the Rackspace project, the Windcrest Economic Development Corp. has a contract pending on 111 acres south of the mall, said Ray Watson, director of the Windcrest Economic Development Corp.

It plans to sell the land to a developer, which will create a $225 million mixed-use project of residential and retail facilities, he said. It is in the process of selecting a developer for the project, part of a plan to create a campus-like atmosphere for technology workers.

The city of Windcrest, with a population of 5,000, and the Windcrest Economic Development Corp. have proposed a package of economic development incentives, including abating property taxes. Bexar County commissioners approved a similar plan during its July 24 meeting.

Today, the city will consider a boundary change agreement. The 221 acres would include the Windsor Park Mall site and surrounding properties and a strip along Interstate 35 from Walzem Road to Eisenhauer. The City Council will vote on that and other incentives.

"It's complex," said Robert Peche, the city's economic development director. "But it's something each organization involved has gone to the extent it could go to get this thing done."

The City Council has already approved an incentive package May 30. But in the past few months, the incentives have changed slightly, so the council will need to vote again, Peche said.

The boundary change agreement also falls under new state legislation, House Bill 3367, passed specifically for this project. Rep. Joe Straus, R-San Antonio, sponsored the bill.

"It's not unusual for legislation to be passed around the facts of a particular project," Peche said. "It allowed it to be a little bit of a simpler process for the two cities."

Rackspace plans to invest $100 million in property improvements to the mall building, said Randy Smith, the company's manager of real estate services. Under the incentive package, Rackspace would receive a 14-year tax exemption from paying taxes beginning Jan. 1, 2009. However, it would make payments in lieu of taxes to the North East Independent School District, Smith said.

The deal still needs the Bexar Appraisal District to approve Windcrest Economic Development Corp. as a tax-exempt organization representing the mall property.

It also guarantees that the city of San Antonio will be reimbursed at least $4.1 million during the next 30 years, according to documents filed with the city. That's the amount it would have collected in property taxes at the site. In the best-case scenario, it could receive $34.5 million.

That's because the city of San Antonio and Windcrest would share equally all sales and property taxes from the Eisenhauer mixed-use development for 30 years. In addition, San Antonio and Windcrest will split a Rackspace payment in lieu of taxes for 16 years of its 30-year lease.

Rackspace is a fast-growing technology company with $224 million in revenue for 2006 and a 60 percent rise in revenue projected this year. The company now has 1,800 employees, including 1,300 in San Antonio.

"The community is making a big show of support for Rackspace," Napier said. "With that investment, you have an expectation of performance. We want to deliver for you thousands of high-paying jobs."

[email protected]

http://www.mysanantonio.com/global-includes/printstory.jsp?path=/business/jobs/stories/MYSA080207.1A.Rackspace.34311c0.html

[CubanMustGo]

What a no-brainer for Windcrest - free money, baby! - not to mention trying to do something with a part of SA that has really started crumbling over the last decade and is no doubt impacting Windcrest property values.

Great deal for everyone involved. And a shout out to my fellow Trinity grads for not only setting the company up but for keeping the jobs in SA.

[ShoogarBear]

This isn't my field, but I'm amazed that a company which does Web hosting requires 2000-5000 employees, but a Microsoft data center employs less than 100.

But my Dad lives out that way and you're right, the area needs a boost. Windsor Park opened my senior year at Roosevelt and it's always sad when I drive past it these days.

[CubanMustGo]

It is my field ;-) and it's much more manpower intensive to do hosting for a multitude of customers than one customer (e.g. Microsoft hosting Microsoft) where you can enforce a common set of rules, policies, hardware, and so forth.

My company is consolidating literally hundreds of its own data centers worldwide into a handful. The number of employees required once that is done is a small fraction of what we had when we started a couple of years ago. But at the same time, we do IT services for outside customers and the number of employees providing those IT services is much higher relative to the amount of equipment being serviced.

[boutons_]

"2000-5000 employees, but a Microsoft data center employs less than 100."

RS will have its corp HQ and all the attendant shit and overhead people, etc, etc in the Windcrest site..

MS is parachuting in a highly-automated, tele-administered server farm, except for a few local monkeys to service bad hardware, mop the floors, maintain the cooling, etc.

[ShoogarBear]

Sounds good, just so long as it's Rackspace and not Rackthemouse.

[exstatic]

Kudos to Rackspace for actually bringing in a shitload of GOOD PAYING JOBS to the area. That average salary promise makes me want to apply there when they have like ten positions left and need to hit that average. :lol

[exstatic]

Under the deal being considered, Rackspace would locate 2,000 employees to the mall by the end of 2009 and would expand to 4,500 jobs, with an average salary of $51,000, by 2012. It has 1,300 San Antonio employees now.
If they hit that figure, their payroll would be $229,500,000.

[Buddy Holly]

It plans to sell the land to a developer, which will create a $225 million mixed-use project of residential and retail facilities, he said. It is in the process of selecting a developer for the project, part of a plan to create a campus-like atmosphere for technology workers.

Nice.

[CubanMustGo]

More on the Rackspace deal ...

http://www.mysanantonio.com/business/stories/MYSA080307.01C.Rackspace0803.2b26c82.html

State kicking in $22 million for Rackspace move

Web Posted: 08/02/2007 08:04 PM CDT
L.A. Lorek
Express-News Business Writer

Rackspace Managed Hosting will receive a $22 million grant from the Texas Enterprise Fund as part of an incentive package to help the high-tech company relocate to Windsor Park Mall and add up to 4,000 new jobs around the state.

Gov. Rick Perry announced the grant in a news release Thursday, saying it will generate more than $100 million in capital investment.

Rackspace must add 3,000 new jobs in San Antonio and another 1,000 statewide. It has an office in Austin and a data center in Grapevine.

Earlier Thursday, San Antonio City Council members unanimously approved a boundary change giving the city of Windcrest taxing rights on 221 acres so it can establish a campus for Rackspace at Windsor Park Mall.

"We are extremely thankful for all the support," said Lanham Napier, chief executive officer of Rackspace. "If we can have our dream come true, we'll move our first group of Rackers by year's end."

It's one of the largest grants the Texas Enterprise Fund has given, Perry said in the news release. "The company's decision to expand in Texas will provide economic revitalization and reinforce our state's position as the world's premier place to do business," he said.

The grant was key in keeping Rackspace's operations in San Antonio, said Graham Weston, Rackspace's chairman. The company had threatened to leave unless leaders provided tax incentives to expand.

"Rackspace is a true homegrown success story," San Antonio Mayor Phil Hardberger said in a news release.

Founded in 1998 by three Trinity University students, Rackspace has grown from a few hundred employees to 1,800 workers, including 1,300 in San Antonio. It's the city's fastest-growing high-tech company, with revenue of $224 million in 2006 and expecting 60 percent sales growth this year.

During 2007, the company plans to hire 900 workers.

Rackspace houses some of the world's most important Web sites for many Fortune 500 companies at its eight data centers in Texas, Virginia and London.

"It's wonderful for Rackspace to make a statement that they would like to be the Dell of San Antonio," Bexar County Judge Nelson Wolff said. "It shows their community spirit."

Wolff also praised Windcrest city officials and their economic development department, which worked aggressively to redevelop the mall area.

Windcrest, with a population of 5,000, led the charge in the Rackspace project, Wolff said.

Under the deal, Windcrest will pay San Antonio for 30 years on the 221 acres it gave up. San Antonio is guaranteed to receive at least $4.1 million, but it could receive as much as $34.5 million in a split of property and sales taxes.

San Antonio gave Microsoft Corp. a 10-year, 100 percent tax abatement worth $20.7 million and voted to provide $5.2 million from the CPS Energy economic development fund for its $550 million data center in Westover Hills. But the only incentive the city provided to Rackspace was the boundary change.

In addition to the $22 million state grant, Rackspace is receiving incentives from Windcrest, including a 14-year tax abatement on the property.

Windcrest officials also are purchasing 111 acres south of the mall and plan to select a developer to create a $225 million mixed-used residential and retail complex.

Rackspace plans to invest $100 million in the Windsor Park Mall location. It also plans to move its 1,300 local employees to the mall and to hire 3,000 more employees with an average salary of $51,000 within the next five years.

"This has been a very, very important project for District 2," said San Antonio Councilwoman Sheila D. McNeil, who represents the district where the project is taking place. "This is going to have a ripple effect for generations to come."

Diane G. Cibrian, a councilwoman for District 8 where Rackspace now is located, said: "I think this going to be very important to the future of our city."

Yet she said Rackspace would leave a significant hole in her district. It currently leases part of a 180,000-square-foot building at 9725 Datapoint Drive. But she said the University of the Incarnate Word has expressed an interest in moving part of its pharmacy school operations to that building, she said.

For the past four years, Windcrest Mayor Jack Leonhardt said the city has tried to redevelop the Windsor Park Mall. The mall closed several years ago.

"Rackspace is an economic development catalyst for the Northeast Side," Leonhardt said.

[email protected]

[Clutch20]

This is part of a bigger list of technologies in San Antonio. Those employees that are in charge of the digital end of these places have transferable expertise to places such as data centers number well over a 100. But maybe for some of them that would be either a lateral move or pay cut..............


Memphis Business Journal by Toby Sells on August 3, 2007
South Texas Centre officially opens in Southwest San Antonio
...applications and a shared technology infrastructure by which participating nonprofit agencies can link. The campus is located in Southwest San Antonio. The new campus is......

San Antonio Business Journal on August 3, 2007
San Antonio approves Rackspace plan, company to create 4,000 jobs
...is completed. Rackspace is a technology company that hosts Web sites and applications through seven data centers in San Antonio, Dallas, Austin, Virginia and the......

San Antonio Business Journal on August 2, 2007
Md. biotech begins testing flu vaccine in humans
...of deaths in Southeast Asia...Discoveries in San Antonio, one of...proprietary VLP technology against a......

Baltimore Business Journal by Erin Killian on July 31, 2007
Karta founder charts a new course in wake of firm's sale
...heavily involved in the local arena and help grow the investment side of the technology community as well as support the San Antonio Technology Accelerator......

San Antonio Business Journal by Catherine Dominguez on July 20, 2007
Armida Technologies expands video surveillance capabilities
...Armida Technologies, a local...will allow San Antonio-based Armida...and scalability in wireless video......

Austin Business Journal by Sandra Zaragoza on July 13, 2007
SATAI elects new leadership at the technology group
...of the North San Antonio Chamber of Commerce. Barshop is the president of Barshop Ventures, a technology venture capital investment firm in San Antonio. His......

San Antonio Business Journal on July 13, 2007
Institute to conduct virtual explosions in St. Louis Park
...small office in St. Louis...for the San Antonio, Texas-based...University, and technology research groups......

Minneapolis / St. Paul Business Journal by Katharine Grayson on July 13, 2007
Google leases former Agilent HQ in Palo Alto
...former Agilent Technologies headquarters in Palo Alto...acquired by San Francisco developer...along San Antonio and Embarcadero......

Silicon Valley / San Jose Business Journal by Sharon Simonson on July 12, 2007
XO Communications builds out new wireless network in San Antonio
...giving businesses in San Antonio a new...broadband wireless technology to 36......

San Antonio Business Journal on July 11, 2007
Google leases former Agilent HQ in Palo Alto
...former Agilent Technologies headquarters in Palo Alto...acquired by San Francisco developer...along San Antonio and Embarcadero......

San Francisco Business Times by Sharon Simonson on July 11, 2007
San Antonio cancer center ranked best in the nation
...Award" from the magazine Outpatient Care Technology. This makes the San Antonio cancer facility the No. 1 clinic in the country, according to the publication......

San Antonio Business Journal on July 6, 2007
National info-tech firm opens office in San Antonio market
...SunGard offers will likely grow. "With the growth in the San Antonio region from the technology perspective to the infrastructure, SunGard felt it was......

San Antonio Business Journal by Catherine Dominguez on June 29, 2007
Second fund raises stake in life sciences
...and materials sciences companies. Investors in the local venture capital firm...scarless surgical techniques. BioSurface Engineering Technologies Inc. of College Park, Md......

San Antonio Business Journal by Catherine Dominguez on June 29, 2007
NCI buys Karta Technologies for $64.8M in cash
...Inc., a technology services company...8 million in cash, according...based in San Antonio and has......

Washington Business Journal by Neil Adler on June 28, 2007
D.C.-area defense contractor buys Karta Technologies
...contractor Karta Technologies Inc. has...government agencies. San Antonio-based Karta...employees located in over 25......

San Antonio Business Journal by Catherine Dominguez on June 28, 2007
Trinity Millennium inks alliance with Calif. technology firm
...the two companies to integrate their technologies. Trinity is a San Antonio-based software engineering company that specializes in the modernization of legacy systems. Redwood......

San Antonio Business Journal on June 25, 2007
Volunteers, recipients benefit from nonprofit's new technology
...to proprietary technology they developed...that those in need can...two in San Antonio, one in......

West Clinic invests in CellSearch System to enhance diagnoses in breast cancer
...for needles in haystacks, a...a new technology that locates...at the San Antonio Breast Cancer......


Did you know that:

Digital software developed by a San Antonio company facilitated the production of many blockbuster action films made or in the make by Hollywood?

Digital software was developed by a San Antonio company that provided the ability to create the famous 360 degree virtual tours?

Spin off technological firms spun off by an early San Antonio company called DATA POINT were the progenitors of talent and other high tech companies that created more highly marketable products?

Again, remember this is a partial list!
Someone sometime will untake a compiling of all technologies in SA for a school project and will bring to light just how much technology here in San Antonio has supplanted riveting aluminum airplane parts for the military.