The network-neutral owner of 34 North American facilities invested $37 million in expanding the Toronto facilities as well as three other sites, while $120 million is being used towards an entirely new facility in New Jersey.

Chris Reid, Switch and Data's VP of marketing and communications, says the Canadian city's significant growth demanded the investment. He says that its major customers, telecommunications service providers including Bell Canada, Telus, MTS Allstream, as well as Rogers and Shaw, are all making key investments on expansion, prompting Switch and Data to keep up with this demand.

"We've got a very competitive market offering," Reid told IT World Canada. "A facility in the best building in town, got a great installed customer base. Eighty percent of new sales come from that base."

Located in the International Telecom Carrier Hotel on Front Street, the Toronto facility is cooled from water drawn from Lake Ontario. The recent expansion included putting in raised floors in what had been office space, a fire suppression system, physical security and backup power.

Most of Switch and Data's sites are located in major US cities while Toronto remains as its only Canadian site. Switch and Data acquired the Toronto facility in 2003 when it purchased Buffalo, New York-based RACO (Remote Access Company).

While the company would not disclose the exact numbers, senior VP of marketing Ernie Samperi said Toronto revenues rose by 40 percent over 2006, compared to its overall revenues increase of 26 percent in 2007 over the previous year.

The company also announced this week that its total revenues for the quarter ended March 31 were up 27 percent over the same period a year ago to $39.8 million, pulling in a net income of $300,000. Switch and Data anticipates it will reach revenues of $168 million this year.