November 7, 2007 — (WEB HOST INDUSTRY REVIEW) — Internet exchange and colocation provider Switch and Data (switchanddata.com) announced on Tuesday it is adding capacity in the New York Metro area to meet customer demand. The company will interconnect this new site, one of its largest and fastest growing markets with access to more than 300 networks in its existing New York sites, making this one of the most densely interconnected facilities in North America. Switch and Data has signed a lease for total term of 25 years, including extensions, for a site in North Bergen, New Jersey which was designed and built as a data center. The site will add more than 163,000 gross square feet to Switch and Data’s New York Metro colocation and interconnection capacity, bringing this market’s total gross square feet to 253,000. Following the build-out, the company plans to be open for customers in Q3 2008. The site will be built out in phases, in pace with customer demand. This site is expected to produce 3,000 cabinets when built-out and generate in excess of $95 million in annual revenues. Meanwhile, Switch and Datas capital expenditures are estimated to be $75 to $80 million in 2008 and a total investment of approximately $105 to $115 million to build-out the site. ”Demand for rich media, is driving exponential IP packet growth,” says Keith Olsen, CEO of Switch and Data. “This growth requires scale across the entire supply chain, from content origination through content delivery. Our existing and new customers will require more power, cooling and interconnection infrastructure to support their business growth.”
