Will Zynga's stock performance affect its data center build out? Stock gets close to 8, 20% below IPO

Zynga is close to a stock price of 8 today.


Zynga has increased its data center capacity with a recent 9 MW in Vantage.

Zynga signed the largest deal of the year for Grubb & Ellis, leasing nine megawatts of capacity, or six PODs, at a data center in Santa Clara, Calif.

Zynga has about 5 MW on east and west coast locations before this addition.

Part of the IPO was to fund data center expansion.

But to cut costs and diversify its risks, Zynga is now investing more money in building its own data centers, according to the company’s initial public offering filing with the Securities and Exchange Commission.

Zynga considers the investment in its own infrastructure to be important enough to warrant an investment of $100 – $150 million in the second half of 2011, according to the filing.

But with the stock opening at 10 and now at 8 in less than a month, you would think there are a lot of people thinking on how to get the stock price up.  And, one way is to cut costs and figure out how to support more on less hardware which then brings down the need for data center space.

Even though Zynga doesn't own its data centers they can't do much about their PUE.  They can still take efforts to be green in their data center space evaluating how efficiently their code is and their hardware systems.

Now that Zynga is IPO they need to manage their costs to match their revenue if they want their stock to go up long term.