CoreSite Realty has opened the second facility on its Reston, Virginia, data center campus with the first phase fully leased. The building, close to 200,000 square feet in size, has a 50,000 square foot Phase I, which was leased last quarter to a single tenant.
CoreSite is doubling down on expansion in top U.S. data center markets where it already has presence. The company is one of the largest providers of data center services in the country, offering both wholesale deals (big customers taking lots of space) and retail (by the rack).
It is currently constructing Phase II of similar size in the building. The company expects to complete that phase in the second quarter.
In its most recent earnings call, the CoreSite execs were optimistic about the Northern Virginia data center market, noting it anticipated larger leases in Q4 and onward. This would be one of those leases.
The execs did note one concern about the market. A tremendous amount of data center space vacated by Yahoo came on the market, potentially disrupting supply and demand.
DuPont Fabros Technology, the market's biggest wholesale player, revealed in October that an existing customer subleased the 13 megawatts of capacity vacated by Yahoo at its ACC4 data center in Ashburn in one fell swoop. The temporary vacancy apparently had little effect on market supply and demand, and now CoreSite opens the first phase completely leased.
Other providers with recent builds in the Northern Virginia data center market include CyrusOne, which opened the initial 30,000 square feet of space within a new 125,000 square foot facility in December. A third of that phase was pre-leased to an undisclosed Fortune 50.
Also in the pipeline is NTT-owned RagingWire’s new two-story data center, which will open with 14 megawatts and 140,000 square feet. RagingWire also reports strong leasing activity in the market.
The newly formed Infomart Data Centers (a merger between Fortune Data Centers and Dallas Infomart) is currently refurbishing an AOL data center, its fourth in the market. It is expected to come online this year.
Other recent or upcoming expansions for CoreSite include Boston, Chicago, and New York.
VA2 is physically connected to the network and cloud-dense VA1. The CoreSite campus has access to nearly 60 network, cloud and IT service providers, as well as offers direct network links to Amazon Web Services. The company has cloud and peering Exchanges.
Rich connectivity (where a provider can get access to so many carriers and other service providers) is what makes Northern Virginia such a desirable market. The region also has relatively low power rates and offers tax breaks for data center operators.
“We believe that the nearly 60 network, cloud, and IT service providers already deployed at our Reston campus combine with our market-leading network ecosystem at DC1 and the scalability offered at VA2 to enable CoreSite to offer one of the most comprehensive solutions in the region for performance-sensitive customer requirements,” Tom Ray, CEO of CoreSite, said in a statement. DC1 is CoreSite's data center in Washington, D.C.