HP to Consolidate 85 Global Data Centers Into 6 in U.S.

Hewlett-Packard Co. on Wednesday said it would consolidate 85 data centers around the world into six large facilities in the U.S., hoping to save $1 billion annually in coming years.

HP said its information technology operations would be run in Atlanta, Houston and Austin, Texas, with two facilities in each city.

The Palo Alto-based company decided that the U.S. offered better utility and data communications infrastructures, said spokesman Mike Moeller.

The move runs counter to the thinking of many technology companies that have spent the last several years moving operations overseas where they often can pay lower wages.

“When you’ve heard people talk about ... offshoring stuff, that’s from a people standpoint, but has nothing really to do with a technological standpoint,” Moeller said.

HP also expects a 25% drop in utility costs and savings on real estate costs. The centers, which would be used for HP’s internal requirements, would be designed so that they could be managed remotely.

Additionally, the sites are considered less vulnerable to natural disasters, the company said. The company also has received tax incentives from some localities, Moeller said.

He declined to say how many jobs would be cut in the move, but said they were included in layoffs that the company announced last year. HP in July said it would cut 14,500 jobs. It raised that number to 15,300 in November.

HP will continue to operate more than 70 data centers in 23 countries that provide technology outsourcing and other services for its customers.

The news comes a day after HP posted a better-than-expected profit because of improved business in its server and storage unit and higher sales of its ink supplies. HP forecast current-quarter results that are ahead of Wall Street estimates.

HP shares rose $1.05 to $32.16.