BlackBerry Ltd (BBRY)’s Data Center In Toronto Acquired By TeraGo


BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) was formerly managing a data center based in Mississauga, Ontario, which now has been acquired by TeraGo. In the last two years, this is the fourth acquisition made by the telecom company. The company wants to expand its data center footprint in Canada and hence it is rapidly making some meaningful data center acquisitions. Currently, it has its operations spread across over 4,000 square feet of data center space.

TeraGo expanding operations

The Telecom companies are trying to offer data center services that are friendly to help them diversify their revenue. TeraGo is famous for its wireless services, and owns and manages IP network serving more than 4100 business customers across Canada. The new data center acquired by TeraGo is spread over a 10,000-square foot area, and has power of 5-megawatts approximately. The power is huge in comparison to the size of the data center, and it was operated at high density by BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB).

“This unique, high power facility was important for us to add to our footprint as we have seen a vast increase in the amount of power required to service individual customers,” said Stewart Lyons, CEO and President of TeraGo.

TeraGo already had a data center in Greater Toronto, and this one is its second. The company wanted to build a data center footprint of its own, and purchase of the Vaughan facility in May 2013 was the kick-off step in its acquisition spree. In February this year, first downtown Vancouver data center was acquired by TeraGo. After this it made its third data center acquisition in Vancouver after a month.

BlackBerry faced outages in past over data centers

Growth of cloud services is supported by the facility, according to the company. Between 2013 and 2018 it is expected that the cloud computing market in Canada will see a Compounded Annual Growth Rate of 18%, according to a recent study by TechNavio.

The iPhone and Android phones have given a tough competition to BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB). BlackBerry Ltd’s name appeared in the past in terms of data centers due to highly public outages. Those outages took place in 2007, 2008, 2011 and again in 2011. Blackberry was prompted to boost its infrastructure after this. Though this data center was not involved in outages, but the declining popularity of BlackBerry might be one of the reasons for selling it to another company.