Equinix has opened the second phase expansion of its huge New York-4 (NY4) data center in Secaucus, New Jersey, which will add space for an additional 1,100 cabinets, the company said today. The company said the $82 million expansion is already 50 percent booked, reflecting the strength of the the New York/New Jersey data center market.
"In the New York area, we continue to see strong customer demand, especially from the financial services market, even in the face of a challenging economy," said Steve Smith, president and CEO of Equinix.
Tenants moving into the new expansion space at NY4 include financial data specialist ACTIV Financial and fast-growing market provider Direct Edge, two of the many participants in the Equinix Financial eXchange. At Equinix, these companies can optimize their electronic trading operations by directly exchanging data with strategic partners, customers and vendors. The Financial eXchange provides access to a broad range of data center services and high-performance network connectivity providers.
Equinix (EQIX) said it is evaluating demand for the third and final phase expansion of the NY4 center, which is currently in the design phase. The company's aim is to time its construction so that new space becomes available as the second-phase expansion nears capacity. "Our fill rate is pretty high and so we're managing it very, very closely," Smith said in a recent conference call with analysts.
The NY4 center is Equinix’s fourth New York area data center. The $95 million first phase of the center was opened in November 2007. At full build-out, the NY4 center will be Equinix’s largest in the U.S. to at 340,000 square feet – the size of five football fields – with an annual revenue capacity of between $95 million and $110 million. It is directly linked to the company's three other New York area data centers through redundant dark fiber links managed by Equinix.