Gov. Perry Announces $22 Million to Rackspace Managed Hosting
AUSTIN – Gov. Rick Perry today announced a $22 million Texas Enterprise Fund (TEF) grant to Rackspace Managed Hosting as part of the state and local efforts to secure the company’s expansion to a new facility in the Windcrest/San Antonio area. This investment is projected to generate more than $100 million in capital investment and will create approximately 4,000 new jobs during the next five years.
“The Texas Enterprise Fund continues to be the most successful deal-closing fund in the nation, and with this expansion, Rackspace will be responsible for the largest TEF job creation announcement in Texas since 2005,” said Perry. “The company’s decision to expand in Texas will provide economic revitalization and reinforce our state’s position as the world’s premier place to do business.”
Headquartered in Texas, Rackspace was founded in 1998 and is one of the fastest-growing managed hosting specialists in the world. The company provides global business web hosting services to various companies, including Fortune 500 companies. In addition to its web hosting services in San Antonio, Rackspace has offices in Austin and data center operations in Dallas, Virginia and London.
“The Governor’s Texas Enterprise Fund grant was the key factor in Rackspace’s decision to keep its company headquarters in San Antonio and build out a new campus within Windsor Park Mall,” said Graham Weston, executive chairman of Rackspace Managed Hosting. “We’re grateful for the State of Texas’ investment in Rackspace, as well as the assistance of our local governments, and we are committed to delivering thousands of high-paying jobs to Texas. We look forward to San Antonio being our home for years to come.”
“Rackspace is a true homegrown success story,” San Antonio Mayor Phil Hardberger said. “It speaks highly, both of Rackspace and of San Antonio, that when their company grew exponentially, they went to great lengths to keep their headquarters in San Antonio. Moreover, this new campus will breathe life into an area that has struggled economically but has tremendous potential.”
“This initiative stands to have an impact for decades to come through the presence of Rackspace and the additional investment that the company will attract to the surrounding area, which has been in decline and heavily underutilized for many years,” said Windcrest Mayor Jack Leonhardt. “This effort represents the best of intergovernmental cooperation, because the two cities, Bexar County and the state focused on the collective benefits to be gained for this region and the state.”
“The governor’s plan to invest in Rackspace will enliven our technology sector as the company creates high paying jobs that will undoubtedly boost our local economy,” said Bexar County Judge Nelson Wolff.
The legislature, at Perry’s request, created the TEF in 2003 and re-appropriated it in 2005 and 2007 to help bring new jobs to Texas. To date, the TEF has closed the deal on projects generating more than 45,000 new jobs and $15 billion in capital investment in the state.
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