There were several interesting news items in the data center sector yesterday, let’s take a quick peak at them.
q has added a new CyberCenter in Northern Virginia, bringing its total to 17 and adding some 129,000 square feet of space to its footprint. They chose to buy an existing facility for some $29M rather than build their own or work with the data center developers, apparently simply to reduce time to market. This comes on the heels of a new CyberCenter in Albuquerque in October, and follows a long period where we heard little from Qwest’s data center business. Since it is a capital intensive business, this implies Qwest is becoming much more comfortable with its cash flow and in investing in its nextgen assets.
Telx expanded again in Los Angeles, adding another 40% to its footprint at 600 West 7th – that’s in addition to the 50% expansion they announced just four months ago. Apparently, not only did they sell out the fall expansion, they’ve got a third of this new space pre-sold. Now we see why they were raising money over the summer. They also announced connectivity to abvt across its various facilities in the New York metro area. Apparently things are moving quickly for Telx these days.
Corelink has leased an 81,600 square foot facility 25 miles west of Chicago, their first foray into the midwest. The facility already has 10,000 square feet built out, and they expect to have 65,000 square feet when complete. They intend to improve the infrastructure for higher power densities and have apparently secured 16MW. In addition, they have hired a new CFO and are moving their HQ to Chicago as well. Sounds like a rapidly evolving situation.
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what i find interesting is how few of these players are actually & organically creating new inventory… a fair amount of “signs on the door” changing and incremental upgrades being made. but developing new inventory from scratch is hard, scarce and the only thing that adds net inventory