eBook readers are huge right now with an unprecedented demand for them this holiday season meaning that many of the new devices are unavailable. As eBook adoption grows, the demand for more content is growing as well.

Borders has announced that it is investing in Kobo, an eBook store, and will be investing in a new eReader. The eBook service will be built into the Borders.com website starting in 2010.

So far, Kobo plans to offer about 1.8 million books from the Internet that are available free. It will also have 200,000 other books starting at $9.99 each. What the eReader itself will look like is unknown, but Borders said that it hopes to reach the reader who only buys a few books each year. The device would have to be cheap to do that.