Austin TX, Silicon Hills, ATX -- Technology hub Austin, Texas continues earning its reputation, as Vulcan Capital and Austin Ventures join existing investors by stepping up with an additional $55-million investment in Calxeda, "the company that first invented the concept of using ARM® technology to slash datacenter power" consumption. That $55-million investment, which Calxeda calls "one of the largest semiconductor capital deals this year", increases the company's start-up funding to about $103-million. Vulcan Capital was co-founded by one of Microsoft's founders, Paul Allen.

Calxeda's innovations are aimed at increasing the density of datacenter computer resources while markedly cutting back on the need for power, space, and cooling. HP (Hewlett-Packard) has previously recognized that ARM chips reduce power consumption by about 89% in comparison to conventional x86-based servers.

Employing more than one-hundred people, not only in Austin, but also in Silicon Valley and in subsidiaries in Asia, Calxeda will use the newly injected funds to advance ultra-low power scalable computing into the datacenter marketplace. An Austin Ventures partner, Clark Jernigan, said: "....the market has begun to embrace disruptively power-efficient datacenter architectures". Calxeda CEO and co-founder, Barry Evans said: "Businesses require a more efficient solution for the Web, Cloud, and Big Data. That is what Calxeda is now delivering and this funding will enable us to go bigger and faster."

Earlier this year Dell Inc. revealed experimental ARM-based servers.

Previously existing Calxeda investors include Abu Dhabi based Advanced Technology Investment Co. (ATIC), ARM Holdings PLC based in Great Britain, Highland Capital Partners, Flybridge Capital Partners, and Battery Ventures, with the latter three being based in Massachusetts.