Liquid Web renovations solidify long-term presence in Lansing area

Kathleen Achtenberg

Wednesday, March 28, 2018

Bonds to finance key energy and security improvements at data center; vital collaboration with LEAP, Delta Township supports regional IT investment

One of the state’s largest employers of web hosting services for a range of international businesses will renovate its Delta Township data center, a move made possible by a bond authorization approval by the Michigan Strategic Fund (MSF) on March 27.

The support further positions Liquid Web as a global leader of customized web solutions, including dedicated servers, cloud hosting, and e-commerce support. Specific terms include the issuance of a $4 million private activity taxable bond to Hillcorp Properties, a Delaware-based limited liability company, which leases the Delta Township facility to Liquid Web. 

“With the bond support, Liquid Web can plan on a long-term presence in the region,” said Jeff Mason, CEO, Michigan Economic Development Corporation, which conducts due diligence and administers programs funded by the MSF. “Further, today’s MSF board decision is another significant boost to the state’s IT industry.”

The bond funding is administered through MEDC’s Capital Access team, which facilitates lending support for the small business community and provides administrative support for the inducement and issuance of bonds. 

More than 112,350 jobs are supported by the IT industry, according to EMSI Labor Market Analytics. From 2011 to 2017, job growth in the industry stood at 18 percent, compared to 16 percent, nationally.

“LEAP, MEDC and Delta Township spent a lot of time and energy over the last two years trying to resolve issues for Liquid Web that makes it more likely that they will select us in the future for retention and expansion of great IT jobs rather than the southern United States,” said Bob Trezise, president and CEO, Lansing Economic Area Partnership (LEAP).

The Lansing-area provider of web hosting service has more than 600 employees, the majority of whom are located in the state. Its services reach more than 32,000 customers located in more than 130 countries. 

Primary improvements to Liquid Web’s facility include purchase and installation of energy efficiency enhancements to its temperature control system.

The $4 million in bonds will be funded through sales to private institutional investors.

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