Data center provider Switch and Data, currently undergoing the process of acquisition by Equinix, increased the number of cabinets that generate revenue by nearly 500 during the final quarter of 2009, sequentially.

In its quarterly earnings announcement, the company said the number of "billed" cabinets in its data centers as of Dec. 31, 2009, stood at 8,588, compared with 8,110 in the third quarter of 2009. Switch and Data generated a total of $55.4 million in revenue during the quarter, a 21 percent increase year-over-year.

The provider reported a net loss of $2.1 million during the quarter, an improvement from the same period in 2008, when its losses amounted to $8.5 million.

The earnings report comes on the heels of the announcement that Switch and Data stockholders approved the company's buy-out by Equinix, a deal that will increase Equinix's portfolio by more than 30 data centers in the US and Canada.

Stockholders voted to approve the merger following the two companies' decision to settle three lawsuits filed by Switch and Data stockholders that accused the company's leadership of lack of due diligence in their decision to sell it.

The companies signed a definitive agreement on the $689 million deal in October. It is currently expected to close during the second quarter of 2010.

As the acquisition process continued, Switch and Data continued expanding its data center footprint, announcing construction of a new Atlanta, Ga., data center almost immediately after announcement of the agreement with Equinix.

The $41 million facility is expected to come online in the third quarter of 2010.