TeleGeography: Service providers scramble to keep up with colocation space demand

TeleGeography: Service providers scramble to keep up with colocation space demand
By Sean Buckley

Despite the poor macroeconomic environment, data center and colocation space continues to be filled up a rapid pace, driving more service providers to increase their respective footprints organically and through targeted acquisitions.

Results from TeleGeography's new colocation survey revealed that as of September 2011, there was only 16 percent of retail colocation space available in the Washington, D.C. area, down 30 percent from the same period in 2010. Likewise, vacancy rates declined 36 percent in other major markets such as New York and 26 percent in London during the same period.

New York, in particular, saw the largest gain with over 1.3 million square feet of new colocation space being built between September 2009-2011. Meanwhile, service providers in Hong Kong and London added over 400,000 square feet of new colocation space followed by San Francisco, which added 300,000 feet.

Led by major carriers including AT&T (NYSE: T), CenturyLink (NYSE: CTL), Windstream (Nasdaq: WIN) and Verizon (NYSE: VZ) in addition to a host of specialized players like Telx, it appears that the colocation growth trend is going to continue.

"It's unlikely that the pace of expansion will slow anytime soon," said Jon Hjembo, a TeleGeography analyst. "While operators are adding capacity, vacancy rates in a number of metro markets we surveyed remain under 25 percent."



Contact me at tradd.duggan@gt-t.net at GTT Global Telecom & Technology for more Info 720-259-5419: Whether price shopping for local carriers,seeking Dedicated Internet Access (DIA), MPLS. VPLS. Point to Point Networking, IP Transit or better Peering -we have over 700 and 100 On Net POP's in 46 markets! GTT has a suite of offerings that nobody else has. We can help you choose the best of breed technologies and services from hundreds of telecom carriers. We're also globally in 80 countries -covering 800 suppliers and include a suite of our own modular technology and managed services options.

The Quest For Speed and The Exchange Gateway To Asia

The Race To Zero: Asia
Singapore SGX has commited US$250m to its low latency cause, as algo trading spurs investment in data center infrastructure around the world. SGX details its reach
Published by Ambrose McNevin

One of the key topics of concern for brokers and traders wishing to have high-speed access to trading engines is location – or “just how physically close can you get me to the trading platform”.

In London, with its multiple exchanges, the issue is around staying inside its M25 ring road. Go any further than that trading platform and the milliseconds start to build up and you find yourself stuck in the slow lane.

In New York, the answer is not to be any further than North New Jersey where there is a large concentration of data centers including the Verizon site that hosts Nasdaq and the Mahwah data center built and owned by NYSE Euronext.

In Singapore, there are no such worries about far-flung locations. Being on an island measuring just 10km x 40km means that wherever you locate you can never be that far away from the trading engine.

For the Singapore Stock Exchange (SGX), its US$250m investment in an ultra-low latency trading platform called Reach is about locating in an ultra modern data center with super-fast connectivity to Tokyo, Chicago, New York and London.

Bob Caisley, CIO at the Singapore Stock Exchange, says he believes he is building the fastest trading engine in the world. “Reach is about having the fastest trading engine in the world, at the best data center in Asia with the best colocation facilities,” he says.

Like all trading engines, Caisley acknowledges there may be other trading platforms which will outpace his, but for now, his will be the fastest with an order response time of 90 microseconds.

This quest for speed is behind the exchange’s US$250m investment in Tier IV data center infrastructure which is scheduled for commission at the end of Q1 2011. The fit out is currently underway and SGX believes it can attract algo traders not only for its international derivatives business but its cash equities business which it sees as having huge growth potential for high frequency trading and making Singapore “the exchange gateway to Asia”.



Contact me at tradd.duggan@gt-t.net at GTT Global Telecom & Technology for more Info 720-259-5419: Whether price shopping for local carriers,seeking Dedicated Internet Access (DIA), High Speed Ethernet/BGB or better Peering -we have over 600 and 100 On Net POP's in 46 markets! GTT has a suite of offerings that nobody else has. We can help you choose the best of breed technologies and services from hundreds of telecom carriers. We're also globally in 80 countries -covering 800 suppliers and include a suite of our own modular technology and managed services options.