Isle-based ’Net firm
raises additional financing

By Russ Lynch
Star-Bulletin

Pihana Pacific, a Honolulu-based operator of Internet data exchange centers in Asia and the Pacific, said today it has raised an additional $34 million in financing to complete its first seven operating facilities.

The company raised $190 million in October and with initial seed money now has $236 million in total capital.

Formed in late 1999, the company is building high-speed, high-volume Internet data switching centers that do not depend on any particular telecommunications carrier, letting customers have a great degree of independence in moving their information.

The company sees a strong role for its operations in Asia, where Internet congestion is rife, and says its centers will speed up transmission by not having to route data from Asian points through the United States to reach intended destinations back in Asia.

Richard Kalbrener, Pihana president and chief executive, said the company expects to have seven new data centers operating by June. Targeted locations are Los Angeles, Japan, South Korea, Hong Kong, Taiwan, Singapore and Australia. Pihana opened a $12 million switching center last summer near Honolulu Airport.

The firm was founded by Oahu-born Lambert Onuma, who was director of business development and research at Digital Equipment Corp. The latest financing was arranged by a capital group led by UBS Capital, a worldwide financial services firm, and includes GE Capital Telecom, PacifiCap Group and Nifco Investments.