Expands footprint with cloud gateway in the second largest interconnection market in the world
Cologix, North America’s leading network-neutral interconnection and hyperscale edge data center company, announced it has entered into a definitive agreement with vXchnge to acquire a five-acre campus with an existing 9 MW of power, with room to expand by a further 10 MW, in Silicon Valley, the world’s second largest interconnection hub.
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This Santa Clara site serves as a network-dense hub and has a rich ecosystem of fiber-based carriers that continues to attract traffic-intense global customers. The site has received industry recognition for its power and resource design efficiencies.
“Silicon Valley continues to have one of the fastest growing data center markets in the world with strong fiber connectivity to Internet backbones and a growing density of hyperscale on-ramps,” said Cologix CEO Bill Fathers. “This acquisition fits into Cologix’s cloud-first growth strategy by expanding our national footprint into the heart of Silicon Valley, starting with an established interconnection hub. Through this acquisition, we will fulfill our strategic goal of providing total coverage of the U.S. markets with cloud gateways in Ashburn, Silicon Valley, Dallas, Minneapolis, New Jersey, Jacksonville and Columbus, OH – complementing our national coverage of Canada in Toronto, Montreal and Vancouver.”
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This agreement will bring Cologix dozens of leading cloud, software and carrier customers as well as land to expand in response to accelerated demand for cloud deployments at the digital edge. This acquisition will strengthen the Cologix Platform with more space, power and connectivity in the region, while enhancing Cologix’s market position as an interconnection leader.
Customers on this campus will get access to Cologix Access Marketplace, which provides on-demand connectivity to onramps including Amazon Web Services® Direct Connect, Google Cloud Platform™ Interconnect, Microsoft® Azure ExpressRoute, IBM Cloud™ Direct Link and Oracle® Cloud Infrastructure FastConnect, as well as to many other cloud platforms and network services.
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Market Highlights:
- Silicon Valley continues to be one of the largest and most competitive data center markets in the U.S., providing space for servers to deploy new hardware and services from marquee technology companies as well as many IT firms, particularly startups.i
- Santa Clara’s lower power pricing costs come from the municipal utility, Silicon Valley Power. The utility’s rates average a significant 25% to 40% lower than the cost of power from PG&E in surrounding towns.ii
- Santa Clara’s location puts data centers in close proximity to major cloud and AI companies with high-density compute requirements. Local residents and other companies in the area are heavy Internet consumers.iii
- Legacy carriers AT&T, Sprint and Verizon all run long-haul fiber connections on the west side of San Francisco Bay. These fast connections to the Internet backbone work to connect tech businesses from San Francisco in the north to the concentrations of data centers south of the Bay in Santa Clara and San Jose. Newer carriers like Cogent, Electric Lightwave, Lumen, Integra, Level3, M Power, Paxio, Telepacific, XO Communications and Zayo added new fiber following similar paths but also add connections to east Bay Area-suburbs of Berkeley and Oakland in the north, out to the growing eastern suburbs of Dublin, Pleasanton and Livermore, and circle back southwest to link up to San Jose/Santa Clara.iv
The transaction, which is only subject to customary regulatory approvals, is expected to close in early Q2 2021. It will be funded through a combination of equity from our partner, Mubadala, and an increase to our debt facilities.
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