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January 20, 2011

Colocation Facilities Are a Hot Commodity

By Cindy Waxer, TMCnet Contributing Editor

With demand for data center services fast outstripping supply, news of a new colocation facility is always welcome in today’s tech circles. Telehouse’s announcement that the company has opened a new colocation facility in New York is certainly no exception.

As reported by TMCnet, the carrier-neutral data center at Telehouse’s 10th Avenue site in Manhattan’s Chelsea district will open on January 24, 2011. The data center offers 60,000 square feet of colocation space on one floor with more than 4 mVA power capacity. The move brings the company’s global data center footprint to 39 facilities in 10 countries and territories.

Colocation facilities are hot commodities these days as more and more companies look for places to install their network, server, and data storage devices. By outsourcing their data center needs, companies can both reduce overhead and boost computing and storage capacity. No wonder, then, that a Forrester Research survey published in May 2009 shows that from 2006 to 2007, the number of firms that considered outsourcing their data center facility grew from 22 percent to 44 percent, and it was predicted that would continue to grow.

Yet more than 41 percent of global colocation sites surveyed by research firm TeleGeography were at least 80 percent full at mid-2010, up from 34 percent of sites a year earlier. Among TeleGeography’s (News - Alert) startling findings:

·     Equinix (News - Alert) alone has added more than 1 million gross square feet of new colocation site space and more than 42 megawatts of colocation power capacity since September 2008 — not counting its acquisition of Switch and Data.

·     TelecityGroup, the CSF Group, and Internap (News - Alert) have also recently completed significant development, each with well over 100,000 square feet of new space.

·     TelecityGroup has added 22 megawatts of new power capacity to its sites over the past two years.

When the Telehouse facility opens, the following carriers/ISPs will make telecommunications service available to customers at low introductory cabling and cross-connect rates: Abovenet (News - Alert), AT&T, Level3, Lightower, RCN, Telehouse/KDDI, Time Warner Cable, Verizon, and XO.

Edited by Andrew Litz

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