Yahoo is planning to sublease data center space it is leasing from DuPont Fabros Technology in Ashburn, Virginia, the wholesale data center provider disclosed in a document filed with US regulators.
The data center capacity Yahoo is putting on the market represents 11% of DFT’s total operating property portfolio.
Similar to Facebook, Yahoo has been building out its own data centers and moving out of leased facilities. To avoid paying for idle data center space under long-term wholesale lease contracts, the two companies are offering to sublease the space to others.
Facebook putting data center space in the Silicon Valley on the market at reportedly lower-than-market rates has created worries of oversupply and downward pricing pressure in the region.
Yahoo has let DFT know it is planning to offer for sublease two of the three data centers it is leasing in Ashburn. The internet company is leasing the entire 10.4MW ACC2 data center under a contract that ends in September 2015, according to a form DFT filed with the Securities and Exchange Commission.
It is also leasing 13.65MW of the 36.4MW ACC4 facility, which it is also putting on the market. Yahoo’s ACC4 lease expires in three 4.55MW pieces in June 2017, March 2018 and March 2019.
Contracts between Yahoo and DFT allow for the tenant to sublease its space to a third parties with the provider’s consent.