Hosting.com, a global hosting solutions and services company, has raised a $2 million of funding with CapitalSouth Partners, LLC for expanding its Enterprise Colocation business.

 

The business enables enterprises to deploy custom-built micro-data centers of 2,000 - 20,000 square feet inside one of Hosting.com's five SAS (News - Alert) 70 certified data centers. 

"Hosting.com's growth in the colocation space over the last two years has been exceptional. CapitalSouth invests significantly in companies that have strong competitive advantages and proven management teams, and Hosting.com fits both criteria," said Kenneth Berryman, director of CapitalSouth, in a statement.

 

CapitalSouth Partners was founded in 1998 to provide private equity and mezzanine capital to lower middle-market companies. Since its inception, CapitalSouth has closed over 50 transactions. With over $500 Million under management through multiple committed funds, CapitalSouth actively seeks to invest in lower middle-market companies located primarily in the South, Southwest and Midwest, but also throughout the U.S.

 

Hosting.com's expansion since 2006 has included data centers in Irvine, CA (News - Alert), San Francisco, CA, and Louisville, KY.

 

"With today's economy, businesses continue to outsource their IT infrastructure to save money and focus on their core competencies. Hosting.com's colocation, managed hosting, and cloud computing solutions have never been in higher demand," said Darren G. King, CEO of Hosting.com.

 

King said that he was happy to have a great capital partner like CapitalSouth to fund up to $15 Million of company’s data center expansion initiatives into key markets such as Silicon Valley, Northern Virginia, and Boston.

 

Citing the recent downturn in the economy as a reason to continue expansion and growth into new markets at this time, Jonathan Erwin, vice president of Sales and Marketing at Hosting.com, said that the company is receiving more calls from enterprises looking to save capital and improve their operational efficiencies by avoiding data center builds and turning to experienced providers such as Hosting.com for increased services.