Diversified industrial manufacturer Eaton is planning a $160 million investment on two 55,000 sq ft datacenters in Kentucky.

The company plans to build two identical datacenters in Louisville as part of a global datacenter consolidation programme.

The company currently operates two datacenters in the Cleveland, Ohio area and chose Louisville as it is sits on a separate power grid. The new datacenters will be around 25 miles apart to reduce latency.

After a global search Kentucky was chosen as it met the basic requirements for redundant electrical connections and redundant networking capabilities and a low risk of natural disasters, such as hurricanes. Cheaper power was also an incentive.

Construction is due to start in March 2009 and on completion the centers will become the company's primary datacenters with the existing Cleveland sites acting as backup.

Reports say the investment is dependent on local and state incentives in the form of a 20 year bond.