General Motors Co. said it will spend $100 million to build a data center in Michigan as part of its overhaul of information technology operations
The new facility in Milford, Michigan, northwest of GM’s Detroit headquarters, follows a $130 million facility in Warren, another Detroit suburb, that opened last year, GM said today in an e-mailed statement. Construction on the second center begins this year with plans for it to open in July 2014.
“Having a single nerve center for our global operations will get newer vehicle designs and technologies into our customers’ hands quicker and improve the bottom line,” Chief Executive Officer Dan Akerson said in the statement. “IT is back home where it should be, and it further drives unnecessary complexity from our businesses.”
The centers are part of a reorganization of GM’s IT work. GM had done about 10 percent of its IT work internally. Chief Information Officer Randy Mott plans to boost that to 90 percent as Akerson pushes to update GM’s computer and financial reporting systems. The automaker started with about 1,500 in-house IT workers and ultimately wants to have about 9,000, Mott said in January.
The two new Michigan facilities will replace a network of 23 data centers operated by GM and three information technology suppliers, according to the statement. The Warren facility has 48 work stations and a 955-square-foot (89-square-meter) video wall.
GM will build the second data center at its Milford Proving Ground test track, the company said. About $158 million worth of equipment will be installed, according to the statement. Milford is about 40 miles (64 kilometers) from Detroit.
GM plans to add about 7,500 information technology workers over as many as five years as it shifts such work in-house instead of using outside contractors such as Palo Alto, California-based Hewlett-Packard Co.
The automaker has also announced so-called innovation centers in Warren, suburban Atlanta, suburban Phoenix and Austin, Texas.
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