Yesterday, datacenter operator CoreSite announced two economic news services, Need to Know News and Rapidata, as customers in its facility at 1275 K Street in Washington DC. No, not Ashburn or Reston, but rather just a mile from the government agencies that issue the economic data that the financial markets often hinge on in the city itself. That proximity to the data plus connectivity to various fiber routes means that the news can reach the right ears in New York and Chicago more quickly.
That’s minimizing the latency in news delivery, which is a bit different than the usual discussion of latency high speed algorithmic trading. Thus, CoreSites is offering a rationale for low latency NYC-DC and Chicago-DC routes, which have begun to appear in the marketplace. Of course, DC is not the only place news comes from, so if latency in news delivery becomes a differentiator in the bandwidth marketplace, it could be the vector upon which this phenomenon spreads. But does it really matter if the uninterpreted news arrives to *human* eyes a few microseconds (or in this case a full millisecond) earlier? I suppose the data might be harvested directly by the trading algorithm, hmmmm…
Back in May, CoreSite filed for an IPO as a REIT along the lines of Digital Realty Trust and Dupont Fabros Technologies, worth perhaps $230M. Another reminder that despite Equinix’s current status as the 800lb gorilla, the datacenter space remains dynamic and interesting.
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