Windstream Hosted Solutions, a division of Windstream Corporation (WIN), opened its latest data center in Chicago on Sep 10. This new center spans across a 20,000-square-foot facility with over 15,600 square feet of data center space and is equipped to facilitate Windstream's new EMC(R)-powered storage services. We believe the new data center will remain accretive to the company's financial and bring long-term growth.
The facility is expected to cope with the growing demand for data centers and managed services from customers all over the nation. The unit will also lend support to Windstream Hosted Solutions to manage its huge network of cloud computing solutions. This technology aids in improving the efficiency and accessibility of IT resources and applications.
Windstream – which currently has more than 20 data centers across the U.S. – is increasingly investing capital in developing its data center business. Late last year, the company revealed plans to build two data centers in Nashville, TN and Durham, NC – both expected to open this year. Prior to that, in Apr 2013, the company had set up a data center in McLean, VA.
We believe that the continuous opening of such data centers will not only drive subscriber growth for the company but will also improve its overall business performance, hence providing a competitive advantage over peers like Frontier Communications (FTR), Cbeyond Inc. and Consolidated Communications Holdings Inc. (CNSL).
Windstream currently carries a Zacks Rank #3 (Hold).
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