Archived Content

The following content is from an older version of this website, and may not display correctly.

Cupertino Electric, a California engineering and construction company and a major player in data construction, has bought a data center design and commissioning firm that is small and quiet but has a client list even the biggest engineering companies are envious of.

 

The five-person California Data Center Design Group (CDCDG) has worked on data center projects by companies like Adobe, eBay, Citigroup, AT&T and GoDaddy, to name a few, and numerous US state and federal agencies. It also does a lot of business outside of the US.

 

CDCDG's founder, Ron Hughes, is currently the director of the office of technology services of the State of California. Hughes left CDCDG when California governor Jerry Brown appointed him to the post.

 

John Boncher, president and CEO of Cupertino Electric, said his company had known and worked with CDCDG for 20 years. “While small, they were incredibly nimble,” he said. “An absolute powerhouse.”

 

Cupertino Electric's intention is to leave CDCDG operating as is, with as little involvement from its new owner as possible. “They're a good stand along company, and we don't see any need to go in and start changing it,” Boncher said.

 

He declined to disclose the acquisition price.

 

There are multiple reasons Cupertino Electric made the move, and additional revenue is not a big one. The acquisition will not make a notable difference for the buyer in terms of revenue, Boncher said.

 

One of the reasons for the acquisition is obviously CDCDG's customer base. “CDCDG has a customer base made up of a significant group of companies none of which Cupertino Electric works with.”

 

Another big piece is commissioning, which is a very strong part of CDCDG's business. Many companies, such as electrical contractors, have moved into the growing data center space, and more and more mission-critical facilities are being built quickly and cheaply by companies with little experience in the space.

 

“We anticipate that there could be some issues with quality and that commissioning will become increasingly important” Boncher said.

 

Finally, Cupertino Electric is interested in CDCDG's unique and proprietary design process. “They have a very interesting way of helping their customers through the process,” he said, declining to go into detail on what is now Cupertino Electric's proprietary asset.

 

What CDCDG has not had prior to the acquisition is the ability to perform quick estimating, budgeting and feasibility studies – capabilities Cupertino Electric has dedicated staff for.