CoreSite Realty, a data center provider, has selected a new site in Secaucus, N.J. to build a new data center campus with the aim of serving cloud services and low latency networking to service providers and businesses.
After meeting customary closing conditions, CoreSite said it will complete the acquisition early next month. At the time of closing, the company will begin necessary construction to convert the existing building to meet data center specifications in Q1 2013 and start offering capacity in the fourth quarter this year.
Housed in a 280,000 square-foot building it is in the process of buying on 10 acres of land in Secaucus, the new data center facility will be named NY2. When complete, CoreSite says it will offer up to 18 critical megawatts of capacity. It also has the option to use the land to develop other data centers as needed.
The company plans to invest a total of $65 million to acquire the facility, redevelop the powered shell, and have 65,000 feet of space available to customers. As customer demand dictates, CoreSite will continue to invest and scale the campus by building out additional phases.
At the site, CoreSite will provide interconnection across its New York campus. By providing what it says is a "seamless connection" between its NY1 and NY2 facilities, CoreSite will "provide distributed direct-connect access to the CoreSite Mesh," which includes access to 75 service providers in addition to a host of public, private, and hybrid cloud providers.
Two segments that will benefit from the CoreSite NY2 campus will be digital content providers and financial traders, who would be able to support the growth of over the top (OTT) video services like Netflix (Nasdaq: NFLX) and support new trading algorithms that require low latency connections.
Already, CoreSite has gotten commitments from three of its partners--Sidera Networks, Zayo, and Seaborn Networks—all of which have become established network service providers for the financial services, cloud and network communities.
Financial clients will be able to access Sidera's 40 financial exchanges and its Xtreme ultra-low latency network or Zayo Bandwidth's suite of dark fiber, wavelengths, Ethernet and IP services. No less compelling is Seaborn Networks, which will now have a point of presence for its Seabras-1 U.S.-to-Brazil submarine cable that will begin offering service in the first quarter of 2015.
Both New Jersey and New York City metro have become competitive markets for data center and colocation services. With the options for data center and neutral connectivity constantly growing, CoreSite will be armed with another weapon to battle other growing competitors such as FiberMedia, which last April expanded its data center facility in Secaucus.
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