First Data Outlines Data Center Consolidation Plans
First Data Corp. filed a 10-Q quarterly report yesterday with the SEC that includes some information about its plans for data center consolidation scheduled over the next two and a half years.
The Company plans to begin its U.S. data center consolidation initiatives during 2007, upon approval by the Board of Directors. The Company plans to reduce its U.S. data centers to 3 from the current total of 12. Command centers will be reduced to 2 from the current total of 7. The estimated cost in 2007 related to these U.S. initiatives is expected to be approximately $45 million consisting of approximately $24 million in capital expenditures and approximately $21 million of direct project costs. The cost of the entire project is currently estimated to be approximately $225 million, of which approximately $145 million relates to capital expenditures and approximately $80 million to direct project costs. The Company expects to incur these costs beginning in the second quarter of 2007 through the second half of 2009, when the project is expected to be completed.The Company’s domestic platform consolidation and its global sourcing initiative are still under development.
Internationally, the Company has already closed one European data center, and anticipates closing another in the second quarter of 2007. The European mainframe data center consolidation is expected to be mostly complete in 2008.
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