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Another Data Center from Windstream

Zacks Equity Research

Windstream Hosted Solutions – a division of Windstream Corp. (WIN) – will build a fourth enterprise-class data center in Charlotte, N.C. The company has already started the designing and construction of the 72,000-square-foot facility.

This seventh data unit in North Carolina will have multiple 10,000-square-foot data center suites and will be completed in phases. Additionally, the center will feature facilities such as customer workspace and build rooms, fire control systems, superior cooling equipment, high-speed Internet connectivity and power distribution arrangement.

There will also be on-site Network Operations Centers with staffs working 24x7, rendering network monitoring, security, technical and remote-hands support. This center – which is slated to open in late 2013 – will manage Windstream’s offering of cloud computing, dedicated hardware, data storage and managed services. This will aid the company in extending services to business customers more efficiently at a lower cost.

Windstream – which currently has more than 20 data centers across the U.S. – is putting in a lot of capital for developing its data center business. Late last year, the company revealed plans to build two data centers in Nashville, Tenn., and Durham, N.C. - both expected to open this year. In Apr 2013, the company set up a data center in McLean, VA.

Windstream is building these units to meet the growing demand for cloud computing solution and managed services from customers all over the nation. This technology aids in improving the efficiency and accessibility of IT resources and its applications in firms.

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 the likes of Frontier Communications (FTR), Cbeyond Inc. (CBEY) and Consolidated Communications Holdings Inc. (CNSL).

Windstream currently carries a Zacks Rank #3 (Hold).

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