Telx Expands with NJ Data Center

Interconnection specialist Telx has acquired 24,000 square feet of colocation space in Clifton, New Jersey. The new facility expands the company’s data center footprint in the New York area, where most of its space is focused in Manhattan’s premier carrier hotels at 60 Hudson Street and 111 Eighth Avenue.

The acquisition is the fifth data center expansion by Telx in the last six months, in which the company has added 70,000 square feet of new space.The Clifton data center, which will begin accepting colocation clients in the first quarter of 2009, allows Telx to support customers seeking larger footprints and higher power densities.

“We’ve had phenomenal growth in our New York City facilities,” said Telx chief business officer Tesh Durvasula, who said some tenants have requested up to 1,000 square feet of colocation space. ”This gives us the opportunity to provide that square footage for a company that wants a little more space.”  

Telx Expands at 200 Paul in San Francisco

Interconnection specialist Telx continues to expand its data center footprint, and has acquired an additional 6,000 square feet of colocation space at 200 Paul Avenue in San Francisco, the carrier hotel operated by Digital Realty Trust (DLR). The expansion provides Telx with space for an additional 200 cabinet equivalents, and is connected to the Telx “meet me room” in the building and ready for immediate occupancy.  

The San Francisco acquisition the fourth expansion in just six months for Telx, which has added more than 46,000 square feet of new space at 60 Hudson Street and 111 Eighth Avenue in New York and at 350 East Cermak Street in Chicago. Telx also acquired the Atlanta Internet Exchange in June and opened a peering exchange in Phoenix.

“Our West Coast customers need high-quality, secure, network-rich and cost-effective space for their growing data, IP and content businesses,” says Chris Downie, President and Chief Financial Officer of Telx. “Telx has just completed a strong second quarter keeping us in line to achieve an increase in revenue of more than 40 percent in 2008. Our expansions this year are a testament to this strong growth curve.”

Telx Leases Dallas Space to iLand

Interconnection specialist Telx has leased a custom data center suite to iland Internet Solutions at its data center facility at 8435 Stemmons Freeway in Dallas. iland is a leading provider of VMware VI Enterprise solutions and managed colocation, with 600 customers including Reuters, Music Nation, and Careerbuilder.com. iland also leases space from Telx at 60 Hudson Street in New York.

“Telx is the ideal solution provider for iland in Dallas,” said Scott Sparvero, CEO of iland Internet. “Telx provided us with a flexible, easy to use solution with a quick turn-up time. Now, Telx customers can easily connect to iland’s tier 1 IP providers. This is exactly what we were looking for. ”

Telx Expands in Chicago at 350 East Cermak

Telx is expanding its data center space in Chicago, acquiring an additional 5,000 square feet of colocation space at 350 East Cermak, the huge Chicago carrier hotel operated by Digital Realty Trust (DLR). The new space can accommodate 200 cabinets, and will seamlessly connect to the existing Meet Me Room that Telx manages at the building. The growth in Chicago follows similar expansions for Telx in the two largest carrier hotels in New York, 60 Hudson Street and 111 8th Avenue.

Telx, which specializes in interconnections, said the expansion was driven by “continuing strong demand Telx across various vertical markets, including both the financial sector and the traditional service provider sectors.” The company has also seen growth in the volume of communications traffic between New York and Chicago.

“350 East Cermak in Chicago is where you meet most of the global networks,” said Shane Hampton, Vice President, and Market Development for Business Only Broadband. “Anyone that has their own network facilities has space in the building, either in the Meet Me Room or the building itself. Telx provides a fundamental service in the Chicago market offering infrastructure to facilitate cross-connections to an array of global networks and end users.”

Turnout of 1,000-Plus for Telx CBx

More than 1,000 executives from the data center and telecom industry turned out for the Telx CBx (Customer Business Exchange) in Brooklyn on June 5. This video provides an overview of the event, as well as excerpts from Telx CEO Eric Shepcaro and Chief Business Officer Tesh Durvasula as they discuss the company’s recent expansion, including a new lease at the 111 8th Avenue carrier hotel in Manhattan and the company’s entry into the IP peering business. This video runs about 4 minutes, 30 seconds.

For more about Telx, see our Telx Channel. For additional video, check out our DCK video archive and the Data Center Videos channel on YouTube.

Telx Expands at 111 8th Avenue

Interconnection and colocation provider Telx has acquired an additional 5,000 square feet of additional space at 111 8th Avenue, one of the premier carrier hotels in New York City, the company said. Telx already runs the carrier meet-me room at 111 Eighth Avenue, which was acquired in 2007. The lease follows a similar expansion at 60 Hudson Street, Manhattan’s other leading bandwidth hub. Telx, which announced the expansion yesterday at its CBx customer event in Brooklyn, said the growth is being driven by continuing demand from the financial sector and traditional service providers market.

Telx recently announced is Metro Cross-Connect service, which allows customers colocated in meet me rooms at either 111 8th Avenue or 60 Hudson Street to interconnect to one another.

Telx said its business experienced substantial growth in the first quarter of 2008, when it added 27 new customers and 1,300 cross connections. The company is forecasting year-over-year revenue growth in excess of 40 percent.

Telx Buys Atlanta Exchange, Enters Peering

Telx has acquired the Atlanta Internet Exchange (AIX) and has launched a new peering exchange in Phoenix, the company said today. The expansion marks the company’s entry into Internet peering, expanding beyond its traditional business in Layer 1 physical interconnections. By adding Layer 2 peering services - in which providers connect via a switch rather than a patch panel - Telx enters a business dominated by Equinix (EQIX) and Switch and Data (SDXC), with an initial focus on markets that are underserved by those providers.

Peering allows two providers exchanging large volumes of traffic to save money by connecting directly, rather than routing traffic through their paid Internet connections. Peering is often free as long as the amount of traffic exchanged is not out of balance, providing substantial cost savings for bandwidth for high-traffic sites and networks. Public peering exchanges allow participants to peer with other providers connected to the exchange.

The AIX is an established open exchange platform already colocated with Telx at 56 Marietta Street in Atlanta, where Telx owns the building and operates interconnection facilities. The deal provides Telx with an Internet Exchange with more than 60 participants. “This is an exciting opportunity for customers on the AIX,” said Michael Lucking, founder of the AIX. “Telx’s team has illustrated the dedication and enthusiasm necessary to effectively manage an IP Peering Exchange.”

Telx Expands Colo Space at 60 Hudson Street

Telx has acquired an additional 5,300 square feet of space on the 9th floor of 60 Hudson Street, one of the leading carrier hotels in New York City. The expansion will create space for an additional 220 cabinet equivalents, and enhances the company’s position in the New York City market for colocation and interconnection services. Telx also operates the main meet-me room facility at 111 8th Avenue, the other major carrier hotel in New York

Telx has expanded its colocation space within 60 Hudson Street, its historic base of operations for its interconnection business. In 2006, the company added an additional 13,000 square feet of space on the ninth floor, and in 2007 added 10,000 square feet on the 11th floor of the building.

“After a strong first Quarter, this expansion space is necessary to satisfy the growing demand of our customers and prospects requiring interconnection options to fulfill their technology needs,” said Tesh Durvasula, Chief Marketing and Business Officer of Telx. “Our sales and marketing teams are doing a phenomenal job promoting our value to the enterprise market. After a year of national expansion and customer growth, we are continuing to see strong demand in our core markets.”

Telx: The Interconnection Company

Tesh Durvasula proudly describes Telx as “the interconnection company.” Durvasula, the chief marketing and Business Officer of Telx, acknowledges that his company may not have the visibility of the two public companies specializing in interconnections, Equinix (EQIX) and Switch and Data (SDXC). But Durvasula says Telx has more interconnections than either of its rivals, despite having a far smaller data center footprint.

Durvasula won’t give exact numbers for his company’s interconnections, citing Telx’ status as a private company. But he says Telx has more cross connects that the published numbers for Equinix (19,511) and Switch and Data (19,797), suggesting that Telx has more than 20,000 cross connects in a data center footprint of close to 400,000 square feet of data center space.

That interconnection density is a legacy of Telx’ role as the network clearinghouse at 60 Hudson Street, one of the premier carrier hotels in Manhattan, where it helped telecom carriers exchange traffic. In 2004 the company acquired 56 Marietta, the leading carrier hotel in Atlanta. In late 2006 Telx was bought by private equity firm GI Partners, and has since acquired the NYC Connect meet-me-room operations at 111 Eighth Avenue (New York’s other major carrier hotel) and also manages the meet-me-rooms at 10 facilities owned by Digital Realty Trust.

Having a new owner with deep pockets has accelerated the evolution of Telx beyond its historic base in the telecom industry. “Telx was traditionally a carrier-focused business when we were purely 60 Hudson Street,” said Durvasula. “When we expanded into Atlanta we started to shift from an interconnection play into collocation, which made up a good portion of our revenue after 56 Marietta. It was an expansion into more of a national presence.”

Telx Powers Low Latency Trading for 7Ticks

7Ticks, which provides managed hosting for financial trading, has expanded its infrastructure into Telx’s New York facility located at 111 8th Avenue. The expansion provides 7Ticks with low latency connectivity to its operations at the 350 East Cermak carrier hotel in Chicago, which has the quickest access available to the Chicago Mercantile Exchange (CME) matching engines that execute electronic bid and ask transactions for the exchange.

7Ticks is based in Chicago and designs low latency trading solutions for financial transactions, including managed high-speed access to the CME and other leading international exchanges. The company also provides direct access to the Intercontinental Exchange (ICE), a global commodity and financial products marketplace, including the world’s leading electronic energy markets and soft-commodity exchange.