In a sign of the company's growing confidence in its cash flows, Level 3 Communications (NYSE:LVLT, news, filings) this morning announced the addition of a new data center facility to its London footprint. The new facility is located in Hayes, West London, strategically located to serve the financial vertical, amongst others.
The new facility is of Level 3's 'Premier Elite' class, which supports higher power densities, enhanced security, and the full range of hosting and managed IT systems. It sits on Level 3's fiber equidistant between Chi-X and the financial services district in central London, right on their lowest latency transatlantic route - which is AC-1 if I recall correctly. It will offer disaster recovery, replication and redundancy - including synchronous replication.
Adding new data center facilities is something Level 3 has not done much of over the past decade, reflecting the ongoing shift in the company's fundamentals following the Global Crossing purchase. As the realized synergies add up and 2013 cash flows look better and better, they will have a freer hand when it comes to capex for expansions like this.
Strategically, this is part of Level 3's efforts to take on the enterprise sector in the UK, and Europe as a whole, in a bigger way than they or Global Crossing have tried in the past.
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