Rackspace Managed Hosting Expands in Texas

In July Gov. Rick Perry 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 4000 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” Perry said. “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.”

Emerging Technology Fund News
In July Gov. Perry awarded $6 million to the Texas A&M University System to help attract leading university researchers to Texas A&M University’s Texas Institute for Preclinical Studies in College Station. The grant is awarded through the Texas Emerging Technology Fund (ETF).

Also in July Gov. Perry announced an ETF award of $2 million to SecureOrigins Inc. of El Paso to help bring its emerging technology to market. “Technological innovation is the lifeblood of tomorrow’s economy. By bringing today’s leading researchers to our state’s universities we are elevating our emerging technology sector to make Texas a strong competitor in the global marketplace” Perry said. “Continued investment in emerging technology creates more jobs and generates substantial capital investments diversifying and enriching our economy.”

The Emerging Technology Fund is a $200 million initiative created by the Texas Legislature in 2005 at the Governor’s request and was re-authorized this year. For more information click here.

Recent Awards and Honors
• Texas made the top 10 in Expansion Management’s 9th Annual State Work Force Training Programs Consultant Poll which reviews training programs and incentives available in each of the 50 states. (Expansion Management July/August 2007)
• Forbes magazine recently ranked Texas in the top five of the Best States for Business for 2007. (Forbes July 2007)
• CNBC ranked Texas second overall in its list of America’s Top States for Business. Texas made it into the top 10 in six individual categories of the ranking: Economy (first) Access to Capital (third) Cost of Living (fourth) Technology & Innovation (fifth) Transportation (fifth) and Workforce (seventh). (CNBC July 2007)
• Texas had the largest number of fastest-growing small public companies with 15 – more than any state on FORTUNE Small Business’ FSB 100 list. Six of Texas’ small companies were in the top 25. (FORTUNE Small Business July 2007)