(WEB HOST INDUSTRY REVIEW) — Offering low latency connectivity to major financial exchanges, Internet infrastructure services provider Savvis (www.savvis.net) has announced plans to significantly expand its flagship financial services hosting complex in the the New York-New Jersey financial hub, where demand for its services are the highest.
According to Savvis’ Wednesday announcement, Savvis has completed a transaction to lease space adjacent to its Weehawken, New Jersey data center, Savvis NJ2, for building its new NJ2X facility. Directly connected to NJ2 via fiber, NJ2X could add as much as 105,000 square feet of raised floor for high-performance hosting and low latency financial exchange connectivity for the financial services industry.
Savvis plans to roll out approximately 35,000 square feet of raised floor by the second quarter of 2010, with the potential for an additional 70,000 square feet of raised floor expansion. A direct connection between buildings, which will allow customers to host trading applications to several liquidity centers via Savvis Proximity Hosting solutions.
For the four story building, an expected limited capital investment of $10 million will pay for the second floor build-out in 2009, with $12 million expected to be spent in 2010 for further expansion.
Savvis expects the expansion will attract new customers and let existing customers expand their current offerings. Along with proximity hosting solutions, the expanded facility will offer customers the opportunity to use other Savvis services designed specifically for the financial community, including web solutions, software-as-a-service and cloud computing.
“The demand in the marketplace for financial IT infrastructure continues to grow as companies outsource to trusted providers,” Savvis chief executive officer Phil Koen said in a statement. “Today’s news creates a strong financial data center complex with two of our state-of-the-art facilities making Savvis the destination of choice for financial services companies.”
Savvis currently operates 28 data centers globally encompassing more than 1.4 million square feet of raised floor space designed to support enterprise IT operations, including 40 of the top 100 companies in the Fortune 500.
