Data Centers Proliferate Near D.C. as Vendors Gear up for Outsourcing

Ann All

Last February I blogged about research firm Input's prediction that federal agencies would step up their outsourcing activities, with a resulting increase in the market from $13.3 billion in fiscal 2006 to $17.7 billion in fiscal 2011.


Now, a year into that forecast, it appears that Input may have been on target. As Computerworld reports, several hosting vendors are building high-security data centers in suburban Washington, D.C., in an apparent effort to capitalize on the feds' interest in outsourcing data management.


According to Computerworld, federal spending on application management and services outsourcing, a category that includes data centers, will see an average annual growth rate of 7 percent over the next five years.


Vendors mentioned in the story include Terremark Worldwide, Power Loft LLC and Savvis, Inc.


One agency bucking the outsourcing trend is the FBI which, as IT Business Edge blogger Carl Weinschenk points out, doesn't exactly have a stellar record on security. According to the article, the FBI is building a dedicated 227,000-square-foot data center in Winchester, Va.

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