CoreSite Plans Major Data Center in Northern NJ

CoreSite Realty has purchased a 280,000 square foot building in Secaucus, New Jersey for a new data center, and expects to invest $65 million to buy the facility and redevelop the initial phase of 65,000 square feet of data center space.

Jason Verge

January 18, 2013

5 Min Read
CoreSite Plans Major Data Center in Northern NJ
The server hall of a data center operated by CoreSite, which is filing for a $230 million IPO.

The server hall of a data center operated by CoreSite, which is filing for a $230 million IPO.


The server hall of a data center operated by CoreSite, which is building a new data center in Secaucus, New Jersey.

CoreSite Realty has purchased a 280,000 square foot building in Secaucus, New Jersey for a new data center, and expects to invest $65 million to buy the facility and  redevelop the initial phase of 65,000 square feet of data center space.

The facility, which will be dubbed NY2, is the company’s first data center in New Jersey facility, and a sign of continuing activity in the northern NJ market. CoreSite has a site in New York at 32 Avenue of the Americas, and the Secaucus facility will mark an important expansion for the provider.

CoreSite is under contract to acquire the building, with the acquisition is expected to close in early February. The 280,000 square foot facility sits on 10 acres of land, which allows additional data center development as the market demands. At full build out, CoreSite expects it will offer 19 critical megawatts of capacity. Construction will start in Q1 2013, with turn-key capacity expected to be available in Q4 2013.

CoreSite intends to ensure the availability of high-capacity and high-speed lit services as well as a robust dark-fiber tether between NY2 and CoreSite's NY1 location at 32 Avenue of the Americas in Manhattan, enabling CoreSite to provide seamless interconnection across its New York campus.

CoreSite in Building Mode

The company has aggressively building out data center campuses across America. Focusing on network centric and cloud oriented applications, these data center campuses are network-dense.

"CoreSite's entry into Secaucus is an important step in the execution of our strategy to extend our U.S. platform supporting latency-sensitive customer applications in network-dense, cloud-enabled data center campuses," said Tom Ray, President and Chief Executive Officer, CoreSite. "Our New York campus is designed to meet performance-sensitive customer requirements supported by our location at the nexus of robust, protected, low-latency network rings serving Manhattan as well as global cable routes to Chicago, Frankfurt, London, and Brazil. Additionally, customers are able to connect directly to service nodes for Amazon Web Services Direct Connect."

The Secaucus facility follows the launch of CoreSite's previously announced 15 data center, located in Reston, Virginia. CoreSite's national platform, which spans nine U.S. markets and includes more than 275 carriers and service providers and more than 15,000 interconnections.

Direct Connections Support Cloud, Financials

The availability of direct connections to high speed networks in NY2 will be particularly interest to financial firms looking to reduce latency and improve performance. Three network service providers have pre-committed to serve NY2, consisting of CoreSite partners Sidera Networks, Zayo, and Seaborn Networks, each of which provides high-performance network support to the financial services, cloud and network communities.

"The new CoreSite data center in New Jersey fits perfectly with Sidera's growth strategy," said Clint Heiden, President, Sidera Networks. "This expansion gives CoreSite customers immediate access to over 40 financial exchanges and the Sidera Xtreme Ultra-Low Latency Network."

Open Cloud Exchange

In addition to the new facility, the company also announced an Open Cloud Exchange, an offering looking to offer a range of cloud services to customers. The Exchange will offer best-of-breed partnerships and services from a broad range of providers.  It capitalizes on demand for hybrid infrastructures, letting Enterprises, Managed Service Providers (MSPs) and Systems Integrators (SIs) in CoreSite facilities connect directly, via a single resource, to the cloud service providers of their choice. This provides customers with flexible options to securely and easily connect to all types of cloud offerings.

"We're building the industry's premier home for cloud services," said Jarrett Appleby, COO, CoreSite. "With networks—the oxygen for cloud services—as the foundation, adding the industry's leading cloud providers will create best-in-class scalability, management, automation, software, and many-to-many exchange capability. The Open Cloud Exchange offers our customers enormous provider flexibility, guaranteed performance, real-time monitoring, and easy management of cloud infrastructure services."

The initial four best-of-breed partners in Open Cloud Exchange are CENX, Rightscale, RiverMeadow Software and Brocade.

  • CENX will provide its CENX Automated Ethernet Lifecycle Management software specially designed for CoreSite's Open Cloud Exchange, enabling easy, single sign-on management of Layer 2 cloud infrastructure services and full MEF CE 2.0 compatibility.

  • RightScale, will provide its platform for deploying and manage business-critical applications across public, private, and hybrid clouds. RightScale offers efficient configuration, monitoring, automation, and governance of cloud computing infrastructure and applications.

  • RiverMeadow Software will deliver its automated cloud onboarding SaaS developed specifically for migrating servers and workloads into and between Carrier Service Provider Clouds.

  • Brocade will provide the hardware infrastructure and switching logic at the heart of the Open Cloud Exchange.

Planned future enhancements include the ability to connect to providers across multiple CoreSite locations within the same metro area; Connections between customers and providers in various on-net buildings throughout the country; and the Choice between numerous software and services providers to support performance sensitive customer applications through a marketplace portal

The service is available immediately in seven campuses:  Los Angeles, San Francisco Bay Area, Chicago, New York, Northern Virginia, Boston, and Washington, DC.

In addition to this monster of a facility from CoreSite, Northern New Jersey has been no stranger to activity these last few months. Internap announced a 100,000 square foot build in Secaucus last October, its third in the NY Metro region to address growing demand. With its supply of data center space in northern New Jersey running low, Digital Realty recently announced construction in Clifton. Last July, DCK reported that the appeal of the New Jersey market might be widening for a variety of factors

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