An article in yesterday's Business section incorrectly identified the construction company in Fairfax County's Lafayette Business Park. It is Britt Construction Inc. (Published 09/30/99)

Intel Corp. said yesterday that it will build a $130 million East Coast hub of its new Web-hosting business in Fairfax County by early 2000.

County officials said up to 250 people will work in the 73,000-square-foot Chantilly computer facility.

The center will house more than 8,000 computer servers that will have the ability to maintain World Wide Web sites and support electronic commerce for a large number of corporate customers.

The Fairfax facility is the second Web-hosting center in Intel's $1 billion plan to set up a worldwide Web-hosting business. Intel Online Services Inc., as the subsidiary is known, has an 85,000-square-foot center up and running in Santa Clara, Calif., where Intel is based.

Virginia was chosen as the first East Coast site because of its reputation as a growing technology hub, according to company officials.

"A large and growing proportion of the world's Internet traffic flows through Virginia," Mike Aymar, Intel vice president and general manager of Intel Online Services, said in a statement released yesterday. "That made Virginia a natural location for Intel's expanding Internet-services-hosting business."

Gerald L. Gordon, president of the Fairfax County Economic Development Authority, thinks the center will attract more big-name tech companies. "Because they decided to do that in Northern Virginia, our reputation just took a quantum leap," he said.

Gov. James S. Gilmore III approved a grant from the Governor's Opportunity Fund for $200,000 to assist Fairfax County with site preparation.

The building Intel will occupy is part of Lafayette Business Park, near Dulles International Airport, and will house mostly information technology workers. Other companies in the park include Fuisz Technologies Ltd., Fairfax Laboratories, Hitt Contracting Inc. and Transaction Network Services Inc.

Web hosting refers to the fast-growing business of companies outsourcing Web site and e-commerce functions for a fee, as opposed to maintaining such functions in-house. Intel is the latest of about 18 companies to open a Web-hosting center in the county.

Intel officials said yesterday that Intel Online Services plans to open a total of 12 hosting centers, with British and Japanese facilities to follow the site in Fairfax.

The introduction of the Web-hosting centers is the first major non-chip venture for Intel as it tries to diversify away from computer hardware. Intel estimates the total market for Web hosting will be between $10 billion and $25 billion by 2003. But the niche has some hefty competition already; International Business Machines Corp., GTE Corp. and Verio Inc. already offer the service to major corporations.

Coming Soon

Intel Online Services is planning to add an East Coast hub to its Web-hosting facilities, based in Santa Clara, Calif. Details about the new facility:

Location: Lafayette Business Park in Chantilly

Start-up date (expected): First quarter 2000

Cost: $130 million

Employees: Up to 250

Size: 73,000 square feet

SOURCE: Intel