New datacenter will be located in the Boeing building, along the west bank of the Chicago River.

Hostway Corporation, a provider of web hosting and managed services, today announced that it will build a datacenter in downtown Chicago in response to strong customer growth. The new datacenter will be located in the Boeing building, along the west bank of the Chicago River.

The space was originally built for $200 million and designed to support SBC's mission critical datacenter operation. Hostway intends to invest $10 million to significantly upgrade this location to meet its industry leading standards for physical security, network availability, fire suppression, cooling and power capacity.

The first phase of construction will expand Hostway's Chicago datacenter footprint by 50,000 square feet and customer server installations are expected to be operational by June 2006. The facility will also accommodate custom build-outs for customers requiring specialized solutions.

"Our web hosting and managed services business for enterprise customers is growing rapidly and the cooling and power capacity requirements are rising faster than anything the industry predicted. The new datacenter will incorporate the latest design techniques and enable Hostway to continue to provide a fast, reliable and secure hosting environment for our customers," said Lucas Roh, CEO, Hostway.