French-based web hosting firm, OVH, has managed to raise 140 million Euros from 10 financial institutions as it plans its extension in Europe and in North America.
OVH’s financial director, Nicolas Boyer, said in a statement that this could cover 70 per cent of the investments for the planned expansion with the rest coming from OVH’s own funds.
He added that this exercise would allow them to consolidate their relations with their financial partners (including BNP Paribas, Crédit Agricole and HSBC) with whom OVH has worked for more than a decade.
The company plans to consolidate its infrastructure in Europe before extending its services to North America. It has already built a data center near Montreal, the provincial capital of Quebec, Canada and aims to become the biggest web hosting company in the world.
It also wants to launch the biggest data center in the world with 36 hosting towers each housing 10,000 servers. That would allow OVH to more than double its current park of 150,000 servers to more than half a million.
The company has diversified its offering beyond web hosting. It also sells VoIP, SMS and fax services, cloud-based platforms and provides hosted email services.
OVH will go head to head against the likes of Godaddy, Amazon and OneandOne. It will be interesting however to see how it defines “web hosting” as Godadddy/Wildwestdomains.com is by far the biggest hosting company in the world, managing a whopping 24.4 million domains (that’s more than a quarter of the market) while OVH is one-twentieth its size.