Category Archives: Commercial Real Estate Technology
An exclusive ribbon-cutting event occurred in Chicago today for a major new data center. Server Farm Realty LLC (SFR), one of the nation’s most innovative data center developers, proudly unveiled their newest, state-of-the-art data center facility in Chicago. This watershed event, an invitation-only unveiling ceremony, included dignitaries such as Chicago’s Mayor Rahm Emanuel, Peerless Network’s CEO, John Barnicle and Server Farm Realty’s CEO Avner Papouchado.
The Server Farm Realty Chicago data center serves as a key interconnection point to a number of global network providers. The facility, located at 840 South Canal, features 450,000 total square feet that formerly housed a General Electric Co. (GE) factory and served as Northern Trust’s data center and operations hub. Server Farm Realty invested over $220M to redevelop and transform the building into a Tier III data center.
The facility is situated in an eight-story building, delivering approximately 20 MW of power to over 138,000 square feet of raised floor data center suites. Designed for 100% availability, the building also boasts a very green Power Usage Effectiveness (PUE) rating of 1.4 or better – one of the lowest in Chicago. The building has 4 MW critical load to five (floors 1-5), 250 pounds per square foot loading, and two carrier-neutral meet-me-rooms with dual fiber entrances. There are two floors of trading space (floors 6 and 7), with 24 x 7 building operations for global market trading. The facility includes a large selection of carrier choices including: AT&T, Verizon, 360 Networks, Cogent, CFN, Fiberlink, Level 3, Centurylink, XO, Sunesys, Zayo, Intellifiber, PAETEC, and Global Crossing.
Mayor Rahm Emanuel had significant praise for what Server Farm Realty brings to Chicago. The workforce, coupled with accessible real estate and an abundance of power all centrally located with extensive communications infrastructure leading in all directions leaves no doubt that the city is well- positioned to attract more business and job opportunities.
Chicago is an ideal location for secure, low latency network infrastructure. In addition to being a global data center hub and interconnection point for virtually every major fiber network, Chicago boasts some of the lowest Total Cost of Occupancy (TCO) for data center users, as well as a vast array of real estate options. The city’s deregulated power market offers cost-effective power rates from a wide variety of vendors, while its mild climate yields substantial energy savings for approximately the first half of every year. This combination of regional advantages and technical features make SFR’s newest facility a strategic and key asset for tenants looking for reliable, secure and scalable data center space in the Chicago market.
For more information about Server Farm Realty, its data center facilities, and its build-to-suit, custom data center solutions, visit www.serverfarmrealty.com.
In order to offer Canadian businesses and service providers direct access to major US Points of Presence (PoPs) and metropolitan markets, XO Communications recently announced deployment of its transport and IP infrastructure in Cologix’s 151 Front Street data center – Canada’s premier telecommunications hub and carrier hotel. Also known as TORIX, 151 Front Street West is Canada’s largest interconnection point and a hub for financial services and a network point for Cloud/hosting and large enterprise networks – making it quite a hot commodity amongst diverse service providers.
Cologix also capitalized on the opportunity, recently completing a 30,000 sq. ft. expansion within the Toronto data center and nearing completion of a connected 20,000 sq. ft. tier 3 data center at 905 King Street West. Its unique colocation suites now enable over 150 customers like XO Communications to meet demand for their network services in Canada in addition to providing interconnection services that allow them to grow their network reach in the US.
“We are thrilled that XO Communications has chosen our 151 Front Street data center to leverage their expansion into Toronto,” stated Sean Maskell, President, Cologix Canada. “We are committed to enable XO to reach new customers, sustain their growth goals and provide them with robust connectivity, all backed with unparalleled local customer support and flexibility to meet their growth requirements
XO Communications, one of the nation’s largest US-based communications service providers, already maintains over 1.6 million miles of fiber across 85 metro markets. Already an existing Cologix customer in its Dallas data center, this relationship expansion with Cologix enables XO to expand its services into a previously untapped Toronto market.
“As a major North American market and a strategic interconnection location in Canada, Toronto is a natural and strategic choice for XO’s international network expansion. We are excited to offer network connectivity services at speeds up to 10 Gbps for Canadian businesses and service providers that need direct access to major markets across the U.S.,” said Don MacNeil, chief marketing officer at XO Communications. “Cologix has been a great partner for our expansion into Toronto by demonstrating a high touch customer support model that made their customizable solutions and robust facilities even more attractive.”
For more information about Cologix, please visit the company’s website at www.cologix.com.
Many other analyst firms claim that demand outstrips supply in the data center co-location market. The fact is that this may be true in some regions, but is absolutely false in others. Gone are the days when telecom and co-location providers say “build it and they will come.” All have taken the modular approach – do NOT build unless you have at least an anchor tenant or more likely, several contracted customers. However, there are still pockets of capacity that were built just before the recession that remain vacant, but this is not true for the Northeast.
Wired Real Estate Group has just finished a new study of the Northeast US market for wholesale/retail hybrid co-location services. Not surprisingly, what drives the Northeast market is the financial sector. In addition, with the advent of the HITECH initiative that requires healthcare facilities to implement and maintain electronic health records, we see the healthcare vertical as a growing market within co-location data centers in the next few years.
Some of the highlights of our analyses are summarized below.
- Most of the demand remains in NY and NJ.
- In 2010, the market shrunk by about five-percent from 23MW to 22MW.
- In 2011, it rebounded and grew more than 150-percent, driven by pent-up demand from the financial sector.
- The market for 2012 remains strong with expectations of around 30-percent growth.
- Dupont Fabros Technology, IO Data Centers and Sabey top the list of added capacity with more than 10MW each in 2012.
- All added capacity has at least one large anchor tenant associated with it, though not all have been announced as of yet.
While the Northeast remains one of the most vibrant markets for co-location services, many enterprises are looking elsewhere in order to minimize ongoing operating costs including energy and taxes. So, secondary markets like DE, PA (part of our Mid-Atlantic study) and NC (part of a future Southeast study) are becoming more attractive.
Growth in cloud computing, maturity of the online business model, new regulatory compliance record keeping…so many pressures are driving the need for data center build-outs and expansions to handle our world of big data, and massive processing tasks.
A handful of states are benefiting from the domestic infrastructure developments to support these requirements, and Colorado is a major player among them. Wired Real Estate Group, Inc. (“WiredRE”), the nation’s leading data center advisor, has completed the placement of another national colocation company in an 82,000 square foot property in Denver, Colorado. The site offers 14 MW of existing utility service, and when completed, the site is expected to garner over $50 million in investment as a high density, Tier III colocation facility. With the brokerage of this deal, WiredRE successfully garnered a 100% growth rate in 2011. Sure evidence of the market’s hot trend.
“We doubled our revenues in 2011 and we expect to achieve 200% revenue growth in 2012. The broad adoption of our services and increasing market demand are strong indicators driving the preference for advisory and development firms solely focused on data centers,” commented Everett Thompson, CEO. In fact, the Colorado data center market absorbs approximately 40 MW of new demand annually, and nearly half of that demand surrounds Denver with the remaining 20 MW landing in Colorado Springs.
Complex managed services will continue to have almost half of the market share, however, shared services are expected to grow fastest The Colorado data center market has seen significant investment and finance activity over the last several years. WiredRE also represents the Vineyard Data Center Park, located in South Colorado Springs, which has recently been awarded both state and federal incentives (New Market Tax Credits) estimated at over $100 million.
For more information about WiredRE and its approach to data center advisory solutions, visit http://wiredre.com/.