Business Services Industry

Intel Online Services Opens Major Internet Data Center in Virginia

Business Wire, April 4, 2000

Business Editors

CHANTILLY, Va.--(BUSINESS WIRE)--April 4, 2000

Intel Online Services, Inc., the Internet application hosting subsidiary of Intel Corporation, today announced that it has opened a major Internet data center in Chantilly, Virginia. The 73,000-square-foot facility is capable of housing up to 10,000 servers and will employ as many as 250 people. The data center offers a range of hosting capabilities - from basic "co-location" hosting services to Intel Online Services' "second generation" hosting, which can offer greater reliability and faster development of e-Business solutions.

The Virginia data center, which will cost up to $130 million when fully equipped, offers heightened levels of physical and network security; redundant power, cooling and network connectivity; and an ultra-dense server environment that is unique among major Web hosting providers. Intel first announced its intention to open a facility in Virginia in September 1999, when it announced it was entering the Web hosting business.

Intel Online Services selected Virginia for its second major Internet data center because of the state's proximity to fast, high-capacity Internet connections - enabling Intel Online Services to maximize capacity while offering customers optimal Internet performance. In addition, Virginia has an educated, experienced workforce, especially in the Internet and telecommunications areas. The state also offers a business environment that is favorable to Internet businesses.

"Virginia is cementing its position as the Internet Capital of the World," said Virginia Governor Jim Gilmore. "I am proud that Intel recognizes the tremendous potential and opportunity in our Commonwealth and has decided to locate this important new facility here."

Internet Data Centers Worldwide

Intel Online Services expects to have more than 10 Internet data centers online by the end of 2000. In addition to the Chantilly facility, Intel Online Services has a major data center in Santa Clara, Calif., which has been operational since September. 1999. Three additional facilities, in the United Kingdom, Japan and Korea, are expected to be online in the first half of 2000. Intel expects to invest about $1 billion in Intel Online Services by the end of 2001 -- mainly to build and equip data centers.

"We are creating a global network of Internet data centers with the goal of becoming a leader in world-class Internet application hosting and e-Commerce services," said Mike Aymar, president, Intel Online Services. "The opening of a major Internet data center in Virginia is a key step toward this goal. We'll bring our reliable and innovative approach to hosting customers running mission-critical Internet applications, both in the U.S. and around the world."

Second-Generation Hosting

Intel Online Services' main focus is its second-generation hosting, in which standard, hardware and software is integrated, validated, and managed by Intel Online Services. Using this approach, Intel Online Services provides not just the building, power and network connection - called co-location hosting - but also the servers, operating system software and basic applications. By providing and managing this second-generation hardware and software platform, Intel Online Services can offer a higher degree of predictability and reliability. This can also reduce the cost for customers, since they don't have to hire IT staffs, buy computers, configure software, or carry out other costly tasks.

Intel Online Services, Inc., is an Intel subsidiary that intends to be a leading supplier of hosted Internet services, business applications, and e-Commerce services worldwide.

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.> * Third party marks and brands are property of their respective holders.