PSINet Matt Hudgins Austin Business Journal Staff Sprint Corp. might be working on a deal to put an Internet data center in Southeast Austin. Sources say the intended buyer is Zydeco Development Inc., the same developer that built the two-story structure last year and sold it to PSINet. Howard Yancy, president of Zydeco Development, neither confirms nor denies any involvement in or knowledge of the pending deal. Sources speculate Zydeco is buying the building back either in partnership with Sprint or with the intention of reselling or leasing the property to Sprint after the purchase from PSINet.
Sprint is in the market for U.S. data centers.
In the fourth quarter alone, Sprint opened more than 200,000 square feet of Internet centers in New York, Boston and Kansas City. Sprint plans to operate 18 domestic and at least two international Internet centers by the end of 2002. Each Internet center will offer services ranging from co-location to IT services. Those uses mirror the activities PSINet initially planned at Met Center. Sprint executives couldn't be reached for comment.