Equinix has settled a legal dispute with one of its landlords over the colocation company's lease of a major global connectivity hub in Silicon Valley. In an SEC filing Tuesday, Equnix said it had reached an agreement with 529 Bryant Street Partners that will allow it to continue using the data center building in Palo, Alto, Calif. previously known as the Palo Alto Internet Exchange (PAIX).
Equinix acquired the building earlier this year through its purchase of Switch and Data. 529 Bryant Street Partners filed suit Sept. 10 against Switch & Data CA Nine LLC, the Equinix-owned entity which leases the entire building, alleging that the tenant had breached "non-monetary obligations" under its lease and seeking monetary damages and "ejectment of tenant from the premises."
Last week the two parties settled the dispute and 529 Partners dismissed its lawsuit. Equinix agreed to an increase in rent under the lease, and the landlord agreed to "improved non-monetary lease terms."
Historic Internet Exchange Point
In 1996 the PAIX facility was established as the first major carrier-neutral Internet exchange point, providing connectivity from multiple fiber providers. That bucked the trend at a time when most major exchange points were owned or controlled by telecom companies.
The Palo Alto exchange was launched in the incubator labs of Digital Equipment, and its founders included Jay Adelson (who went on to found Equinix and Digg) and Paul Vixie (author of BIND and a key player in the DNS industry). The building served as the headquarters for DEC’s Alta Vista when it was the top Internet search engine.