Single-tenant financial data centers have also focused on the northern New Jersey locations.īut Piscataway and Somerset are within the data center "donut" - a ring of land in New Jersey that has become the focal point of data center development for New York’s financial industry, its inner and outer boundaries defined by criteria for disaster recovery and the limitations of real-time data replication. Piscataway and Somerset are further south than the traditional data center hot spots in Hudson and Bergen counties, where companies like Equinix (Secaucus) and Savvis (Weehawken) have built thriving businesses selling low-latency colocation services to financial firms. The growth of the wholesale market in central Jersey represents a shift in both geography and philosophy. Sentinel is new to the Jersey market but operated three data centers in Massachusetts and Connecticut, which it recently sold to Digital Realty Russo has specialized in construction of single-tenant data center buildings for financial companies in North Jersey. The companies have acquired a 22.5 acre site with an existing 230,000 square foot single-story structure. Meanwhile, Sentinel Data Centers and Russo Development have begun construction on a large multi-tenant wholesale data center facility in Somerset. "We think New Jersey is one of the strongest markets in the country," said Hossein Fateh, president and CEO of DuPont Fabros. After funding-related delays, DuPont Fabros has commenced construction and hopes to begin installing customers in the fourth quarter of this year.
DuPont Fabros Technologies (DFT) is building the first phase of a major data center in Piscataway that will eventually offer 380,000 square feet of wholesale space. Two more data center builders are working on projects offering wholesale data center space in the same area. Nearby is 650 Randolph Road in the Somerset section of Franklin Township, which houses an early customer in Digital Realty's POD Architecture custom design program. 365 South Randolphville Road in Piscataway is a 270,000 square foot facility that is being leased as both Turn-Key Datacenter (wholesale) space and as Powered Base Building (powered shell). In 2008 Digital Realty bought two more buildings in the area to support additional demand for data center space. In 2006 Digital Realty purchased 3 Corporate Place, an empty commercial building in Piscataway, and transformed it into a wholesale facility that now houses data centers for two major hosting companies and a currency trading firm. The company was already a major player in the northern New Jersey market with a 300,000 square foot facility in Weehawken that serves as a key hub for high-frequency trading by Wall Street firms. The economics of wholesale space are attractive to companies requiring at least 1 megawatt of power capacity for their data center.ĭigital Realty Trust (DLR) has been an early mover in the development of the central New Jersey market. The tenant pays a significant premium over typical leases for office space, but is spared the capital investment to construct the data center.īut it's not a fit for everyone. The model offers greater control and security than shared colocation space, and is quicker and cheaper than building an entire data center facility. That balance has boosted interest in the wholesale data center model, in which a tenant leases dedicated, fully-built data center space. What we’re seeing is a true reflection of the balance between risk and control." But in the last five years it's become one of the most interesting markets for outsourcing.
"New Jersey was the quintessential do-it-yourself market. "New Jersey is really the best petri dish in the country for some of the changes in the data center industry," said Chris Crosby, senior vice president of corporate development for Digital Realty Trust. It’s also an interesting case study in some of the trends sweeping the industry, including the drive towards more efficient use of capital – a trend that has been accelerated by the financial meltdown of 2008 and the discipline it has imposed on key data center users in the NJ market. New Jersey is one of the most active data center markets in the country. But the Garden State's data center geography is now expanding southward to include a growing market for wholesale data center space in central New Jersey, where some of the industry's largest players are building new facilities. The data center market in New Jersey has traditionally focused on colocation facilities and single-tenant data centers in several northern counties located directly across the Hudson River from Manhattan and the Wall Street companies that drive demand. A map of northern and central New Jersey, showing the locations of prominent data center hubs.
0 kommentar(er)
