Data center operator Telx will break ground soon on a 215,000-square-foot data center next to its existing facility in Clifton, N.J.
The new Clifton Cloud Connection Center will be Telx’s 16th facility in the U.S. and bring its total data center space to over 800,000 square feet, said Eric Shepcaro, CEO of New York City-based Telx. It will offer more than 100,000 square feet of customizable colocation space.
The build-out of advanced, energy-efficient data centers with dense connections to communications pipelines is critical as businesses demand fast, low-latency connectivity for transactional applications and consumers flock to social media, video and mobile applications. The tolerance for slow or no connectivity has disappeared.
“The biggest data center choke point today is not compute and not storage; it’s the network,” Shepcaro said. “With more mobility and machine-to-machine communication, with high-frequency trading and video, our differentiator is our networking,” he said. The facility will target customers wanting to deploy hybrid cloud solutions and will encourage them to use services of other data center customers colocated at the site.
The new Telx facility will tap into the company’s existing interconnection services. Telx’s existing Clifton facility, as well as another data center in the iconic 60 Hudson St. building in Manhattan, serves many New York City metro area clients in financial services and other industries. The new facility will connect directly to its Clifton neighbor, 60 Hudson and another Telx data center on Manhattan’s 8th Avenue.
The facility will feature customizable pods with varying power densities and will be built to LEED specifications, the company said.
Telx, which competes with Equinix(s EQIX), Savvis(now owned by CenturyLink (s CTL) and Terremark (now owned by Verizon (s VZ)), is also adding 20,000 square feet to its existing Clifton facility which serves the New Jersey/NYC metro area, Shepcaro said.
Telx filed for a $100 million IPO in March 2010, but shelved those plans. In August,it agreed to be purchased by private equity firms ABRY and Berkshire Partners in a deal that closed a month later.