BIG Unveils Large Expansion Plans

Broadband Investment Group targets 50 cities

By Rich Miller
CarrierHotels News Staff

June 16, 2000 -- Broadband Investment Group Corporation today announced plans to build out 2.5 million square feet of data center property in 50 cities over the next two years.
BIG said its real estate management portfolio company, EcoPlex Corporation, had signed non-binding letters of intent with Grubb & Ellis/Krombach Partners and C. Rallo Contracting.
``To our knowledge, no other company has formed a relationship of this magnitude to build-out broadband infrastructure to BIG's size and scope on a timeline this fast-paced,'' said Timothy M. Roberts, chairman and "chief visionary officer" of Broadband Investment Group.
`BIG's 50 data centers will form the foundation upon which BIG's broadband network and infrastructure will deliver customized solutions to Global 2500 customers, Roberts added. "BIG intends to complete the total broadband infrastructure build-out in the next 24 months, with these data centers expected to be completed in the next 18 months."
BIG said it also expects to hire 1,500 new staff.
The general terms of the letter of intent between EcoPlex and Grubb& Ellis/Krombach outline BIG's intention to purchase approximately $900 million of commercial real estate through 15-year lease agreements, at an average price of $24 per square foot, to initiate development of the 50 data center build-out.
As part of this deal, BIG will purchase the real estate for its mega-data centers located in St. Louis, Mo.; Hollywood, Calif.; and Fairfax, Va.
EcoPlex also agreed to purchase approximately $500 million in construction build-out from C. Rallo Contracting to complete the build-out of the first 50 data centers.
As one of 10 portfolio companies formed by BIG, EcoPlex will provide real estate management, design and construction oversight on all of BIG's infrastructure construction and ongoing real estate asset management.
Broadband Investment Group Corporation (BIG), founded by 30-year-old Internet pioneer Tim Roberts and 31-year-old international operations and management architect Patrick L. Smith, is headquartered in St. Louis, Missouri.