Backblaze expands US-East data center to support AI workflows

Published 21/07/2025, 14:18
Backblaze expands US-East data center to support AI workflows

SAN MATEO, Calif. - Cloud storage provider Backblaze, Inc. (NASDAQ:BLZE), which has grown its revenue by 21.8% over the last twelve months to $132.3 million, announced Monday it has doubled its data center capacity in the US-East region to accommodate growing demand for complex workflows, particularly those involving artificial intelligence, high-performance computing, and media applications.

The expansion increases Backblaze’s ability to support customers seeking alternatives to larger cloud providers. Operating with a moderate debt-to-equity ratio of 0.62, the company’s expanded facility is connected to Internet2’s network through the Internet2 peer exchange, enabling academic and research institutions that are Internet2 members to transfer data at high speeds between Backblaze’s US-East and US-West regions.According to InvestingPro analysis, Backblaze maintains a healthy current ratio of 1.09, suggesting adequate liquidity to support its expansion plans. Discover more insights with InvestingPro’s comprehensive research report.

"Expanding our US-East presence is a significant step for our open cloud vision," said Gleb Budman, CEO of Backblaze, in a press release statement.

The company indicated the expanded infrastructure will enhance capabilities for its B2 Overdrive customers and users of the Backblaze Cloud Storage platform. The additional capacity also supports geographic diversity for data storage and cloud-first disaster recovery strategies.

Backblaze, founded in 2007 and headquartered in San Mateo, California, positions itself as an alternative to traditional cloud providers, serving over 500,000 customers across 175 countries. The company went public in 2021 and trades on the Nasdaq exchange with a market capitalization of $289.4 million. Based on InvestingPro’s Fair Value analysis, the stock currently appears fairly valued, trading at $5.28.

In other recent news, Backblaze, Inc. reported its first-quarter 2025 earnings, highlighting a revenue of $34.6 million, which exceeded expectations of $34.22 million. The company’s adjusted earnings per share (EPS) was -$0.03, surpassing the forecasted -$0.06. This performance was driven by a 15% year-over-year revenue increase, notably in the B2 segment. Backblaze has also secured a $20 million senior secured revolving credit facility with Citizens Bank to enhance liquidity and support growth initiatives. Additionally, the company announced an executive transition, with Senior Vice President of Engineering Tina Cessna stepping down by the end of August 2025. In a strategic move, Backblaze unveiled a new enterprise web console designed to improve cloud storage security, featuring role-based access controls and mandatory multi-factor authentication. The company continues to focus on expanding its AI segment, which saw a 66% increase in its customer base. Lastly, Backblaze is on track to achieve a 30% growth in its B2 segment by the end of the year, as noted by its CEO, Gleb Budman.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.