Yesterday, colocation and interconnection provider Telx Group (news, filings) announced another expansion of its footprint at the major carrier hotel at 111 8th Avenue in New York City. The company intends to add another 40,000 square feet, and just six months following the 21,500 square feet it added back in the Spring. That brings their total footprint at this facility to over 100K square feet, which is spread over 5 floors now. You'd think in New York that much space would be hard to find, but 111 8th is a huge building that used to be a warehouse for the Port Authority and there's always turnover creating opportunities for such expansions.
The expansion is being driven in part (a large part) by the financial sector and its apparently insatiable appetite for low latency connectivity. If a financial buyer of bandwidth is looking for a low latency connection to various exchanges, 111 8th Avenue is one of the best places to park their gear as not only is it in New York but pretty much all of the fiber operators competing to provide such connections are also in that facility.
The fact that Telx sees the need or opportunity to add this much space in the rather crowded New York City market shows just how powerful the financial vertical is right now for bandwidth and colocation providers alike.
Telx filed to go public earlier this year, but hasn't yet pulled the trigger. Soon perhaps?
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