Cincinnati Bell 2010 Annual Report Download - page 112

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The Data Center Colocation segment operates 17 data centers — 6 owned and 11 leased — in Texas, Ohio,
Kentucky, Indiana, Michigan, and Illinois, as noted in the table below:
Data Center
Capacity
(in sq. ft)
Facilities
Market Owned Leased
Cincinnati, OH ................................... 4 2 425,000
Houston, TX ..................................... 1 2 118,000
Dallas, TX ....................................... 0 3 57,000
Austin, TX ....................................... 0 1 12,000
Chicago, IL ...................................... 0 1 14,000
Other Markets .................................... 1 2 13,000
6 11 639,000
The data centers provide 24-hour monitoring of the customer’s computer equipment in the data center,
power, environmental controls, and high-speed, high-bandwidth point-to-point optical network connections. The
Company’s lease of data center facilities represents the “lease of the building shell.” The Company’s capital
expenditures to transform the leased building shells into Tier III data centers represents amounts that are several
times the value of the leased building shells. The Data Center Colocation segment also has leased office space in
Ohio, Texas, and Kentucky as of December 31, 2010.
The Company’s gross investment in property, plant, and equipment was $3,399.8 million and $3,145.1
million at December 31, 2010 and 2009, respectively, and was divided among the operating segments as follows:
December 31,
2010 2009
Wireline ..................................................... 74.7% 77.5%
Wireless ..................................................... 10.6% 11.8%
Data Center Colocation ......................................... 13.6% 9.8%
IT Services and Hardware ....................................... 1.0% 0.8%
Corporate .................................................... 0.1% 0.1%
Total ................................................... 100.0% 100.0%
For additional information about the Company’s properties, see Note 4 to the Consolidated Financial
Statements.
Item 3. Legal Proceedings
The information required by this Item is included in Note 1 to the Consolidated Financial Statements
contained in Item 8 of this Report.
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