Red Hat Tower
| Company type | Subsidiary headquarters |
|---|---|
| Industry | Information technology |
| Founded | 2004 |
| Headquarters | Raleigh , United States |
| Owner | J.P. Morgan Trust Co. |
| Parent | IBM (via Red Hat) |
Red Hat Tower—previously known as Two Progress Tower—is the headquarters of Red Hat, a subsidiary of IBM, situated in Raleigh, North Carolina. Constructed in 2004 at an investment of $100 million to serve as Progress Energy's main office, this 19-story structure encompasses of office space. Ownership of the property lies with J.P. Morgan Trust Co.
History
The inception of this headquarters began in 1999 when Carolina Power & Light announced plans for a new office tower. The merger in 2000 with Florida Progress Corporation, which created Progress Energy, led to an increased need for a larger facility; the initial budget estimate was $60 million. By February 2002, the projected cost had escalated to $80 million, factoring in retail and residential components alongside office areas, with completion aimed for 2004. That same year, Progress purchased a two-acre parcel adjacent to its existing headquarters.
In April 2002, Carter & Associates from Atlanta was chosen to oversee development. The project was divided into phases: the first phase targeted completion in 2004, followed by a second phase planned for 2006. During the commercial construction downturn later that year, Progress expedited the larger phase to consolidate staff scattered across several downtown Raleigh offices.
The building officially opened its doors on September 2, 2004.
After Progress announced its merger with Duke Energy in January 2011, uncertainty surrounded the tower's use due to possible downsizing. Nonetheless, on August 25, 2011, Red Hat revealed intentions to move 600 employees from N.C. State Centennial Campus into the building.
Progress Energy vacated the premises in 2012. Red Hat commenced leasing on January 1, 2013, entering a lease agreement lasting until August 23, 2035, and committed approximately $30 million toward renovations. Red Hat’s relocation was celebrated with a ribbon-cutting event on June 24, 2013. In 2019, the tower’s branding was refreshed as part of Red Hat’s corporate rebranding initiative.