TeraGo Inc.

TeraGo Inc.

October 31, 2014 07:45 ET

TeraGo Acquires Its Fourth Data Center

TORONTO, ONTARIO--(Marketwired - Oct. 31, 2014) - TeraGo Inc. (TSX:TGO) (www.terago.ca), a leading national access, data center and cloud services provider to businesses in Canada, announced today that it has continued to expand its national data center business through the acquisition of a 10,000 square foot Tier 3-ready data center facility in Mississauga, Ontario. This is the second TeraGo operated data center in the Greater Toronto Area.

TeraGo's new data center, previously managed by BlackBerry, will address strong demand from customers for premium data center services in the GTA, as data consumption and cloud services experience continued growth in the Canadian and global IT markets. According to a recent study by TechNavio, Canada's Cloud Computing market will grow at a CAGR of 17.8 percent over the period 2013-2018.

The newly acquired center was designed from the ground up to a Tier 3 standard, has an impressive 4.8MW of power, N+2 availability of generators and is potentially expandable by an additional 1,600 square feet.

"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. "Customers are focusing more and more on high density server capability and this site will future proof us in this regard. It's the perfect site from which to grow our cloud computing environment."

TeraGo acquired its Vaughan data center in May 2013, and provides data center solutions to businesses, enterprises, public sector, and technology service providers. In February 2014, the Company announced the acquisition of its first downtown Vancouver data center, and in April 2014, announced the acquisition of its third data center also in Vancouver. This latest acquisition brings the total number of data center facilities operated by TeraGo to four with a footprint of over 40,000 square feet, not including the many facilities it maintains in the various "telecom hotels" across the country.

About TeraGo

TeraGo, through its wholly owned subsidiary TeraGo Networks Inc., provides businesses across Canada with data and voice communications services, data center colocation and hosting services as well as cloud Infrastructure as a Service ("IaaS") computing and storage solutions. The national service provider owns and manages its IP network servicing approximately 4,100 business customers in 46 major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg, as well as data centers in the Greater Toronto Area and Vancouver. TeraGo Networks is a Competitive Local Exchange Carrier (CLEC).

Forward-Looking Statements

This press release includes certain forward-looking statements that are made as of the date hereof. Such forward-looking statements may include, but are not limited to, statements relating to the growth of Canada's Cloud Computing market, the potential expansion of the newly acquired data center by an additional 1,600 square feet, the data center's ability to address future needs of customers and the growth of the Company's cloud computing environment. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities laws. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. The forward-looking statements reflect the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including the risk that growth in Canada's Cloud Computing market will be lower than expected, the Company is unable to expand the data center by any additional space, changes in technology that will require additional improvements or replacements of equipment in the data center, the Company not realizing on its strategy in growing its cloud services business and those risks set forth in the "Risk Factors" section in the annual MD&A of the Company for the year ended December 31, 2013 available on www.sedar.com. Statements relating to the potential future expansion of the data center are based on the assumptions made by management on their review of current floor plans and capabilities of the data center. Statements relating to the data centers ability to address future needs of customers are based on the Company's review and assessment of the capabilities and capacity of the data center. Accordingly, readers should not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed with the forward-looking statements. Except as may be required by applicable Canadian securities laws, TeraGo does not intend, and disclaim any obligation, to update or revise any forward-looking statements whether in words, oral or written as a result of new information, future events or otherwise.

Contact Information