Telehouse Looks for Expansion Opportunities

<img src="/sites/datacenterknowledge.com/files/wp-content/uploads/2010/05/telehouse-teleport.jpg" alt="Telehouse America colocation services" width="470" height="367" /> Colocation provider Telehouse America is looking to grow. After opening the first phase of a new 60,000 square foot data center in Manhattan, Telehouse says it is scouting sites on both coasts for additional expansion.

Telehouse America colocation services

The atrium of the Telehouse America Teleport facility in Staten Island. The company is looking for expansion opportunities in additional markets.

Colocation provider Telehouse America is looking to grow. After opening the first phase of a new 60,000 square foot data center in Manhattan, Telehouse says it is scouting sites on both coasts for additional expansion.

"We need to add inventory and will continue to look for new facilities," said Fred Cannone, Director of Sales and Marketing for Telehouse America. We're looking at additional East Coast locations as well as additional West Coast locations."

The company operates facilities at The Teleport in Staten Island and 25 Broadway in Manhattan, as well as a data center in Los Angeles. Cannone said Telehouse's search was extending beyond those cities to new markets on each coast.

New Data Center in Manhattan
This week Telehouse officially opened its new data center at 85 10th Avenue in Manhattan. The company said the purchase of the Chelsea facility was “in direct response to the growing demand for diverse carrier neutral, colocation space in Manhattan.” The facility can accommodate up to 600 cabinets.

"It came along at just the right time," Cannone said of the space in Chelsea, which previously housed a data center for Lehman Brothers. "We really needed the additional space." Telehouse's primary Manhattan location at 25 Broadway is about 80 percent filled, with only about 8,000 square feet of available space remaining.

Cannone noted that there is supply available in the greater New York market, but counts Telehouse America among the providers that have been able to differentiate themselves through the quality of their facilities. "There's plenty of data center space on the market," he said. "But as you move up to Tier III and beyond (on the four-level Uptime Institute tier system), it starts to thin out a lot."

Focus on SME Market
The site at 85 10th Avenue is focusing on small to medium-sized businesses requiring colocation and interconnection services, though Telehouse may see more enterprise tenants over time. "The problem with a new facility is that you have to wait a year for SAS70," Cannone said, referring to the Statement of Auditing Standards certification of data center management created by The American Institute of Certified Public Accountants (see SAS70 Compliance for Data Center Providers for background). "Many enterprises will have some requirement for SAS70."

Telehouse America is a pioneer in the colocation business, having launched in 1987 as a joint venture between Japanese telco KDDI and partners in the banking and securities industry. The company America expanded into lower Manhattan with its 25 Broadway facility in the Cunard Building, directly across the street from the Wall Street Bull statue. 25 Broadway is also home to the New York International Internet Exchange (NYIIX), Telehouse estimates that the NYIIX is the busiest public Internet exchange point in the city.

After many years of focusing primarily on colocation, Telehouse America introduced managed services offerings in 2009. Telehouse recently become the latest colocation provider to introduce a modular data center offering, which it calls Data Center Anywhere. The New York company said Tuesday that it will partner with Future Tech Enterprise to offer flexible data center designs that can be deployed at a customer premises.

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