Equinix is preparing for the next phase of growth for its data center operations in the New York region. The company has leased 324,654 square feet of space from Hartz Mountain Industries to expand its data center footprint in Secaucus, New Jersey. The new property, which includes two connected buildings, is adjacent to an existing Equinix data center.
The lease will provide Equinix (EQIX) with space to support its fast-growing business providing colocation and connectivity to financial companies for low-latency trading operations. Equinix recently opened the third and final phase of its NY4 facility, a 340,000 square foot high-density data center.
Equinix says it expects its current footprint to be adequate for the remainder of 2010. The company has not announced any capital expenditures for fitting out a new data center in Secaucus. The new property gives Equinix the option to expand as soon as it believes additional space will be required.
Data Center Growth for Hartz Mountain
The Secaucus building is the 10th data center facility Hartz Mountain Industries has leased in Hudson and Bergen counties, some of which are used by multiple tenants. The company's data center tenants include Citicorp, UBS and CBS. Hartz Mountain also owns the North Bergen data center that was leased to Switch and Data, and is now operated by Equinix.
Hartz Mountain owns and manages more then 38 million square feet of space in 200 commercial and residential properties in northern New Jersey. Data centers represent about 1.7 million square feet of Hartz' footprint, according to Gus Milano, the Executive Vice President of Finance and Leasing at Hartz Mountain.
"Northern New Jersey is really a hotbed of data center facilities," said Milano. "Data centers are a favorite asset class right now. We're focused on the opportunities with data centers, and expect to be more pro-active in this area."
Growing Financial Ecosystem
The Equinix colocation centers in Secaucus, located 11 miles from downtown Manhattan, are a key component of Equinix’s financial ecosystem, a carrier-neutral meeting place for the trading venues, buy and sell side firms, market data providers, technology providers and financial networks.
Equinix currently has about 520,000 square feet of data centers in Secaucus, along with 163,000 square feet in North Bergen, 46,000 square feet in Newark, as well as facilities in New York telecom hubs 60 Hudson Street, 111 8th Avenue and 65 Broadway.