Hivelocity Boosts Los Angeles Presence with Rack Alley Acquisition


Web hosting provider Hivelocity has acquired IaaS provider Rack Alley, picking up a significant data center presence in Los Angeles. Rack Alley’s facilities will be integrated with Hivelocity, and all employees will be retained, according to the announcement last week.

Like Hivelocity, Rack Alley provides colocation, dedicated servers and cloud hosting.

The Los Angeles facilities consist of two data centers across the street from each other, which will operate as one facility interconnected via redundant dark fiber rings, with the ability to operate independently. One of the data centers is located in the One Wilshire Building, which 30 percent of the traffic between the U.S. and Asia travels through, and is one of the top ten network connected building in the world, according to Data Center Knowledge.

“We surveyed our customer base earlier this year and LA was high on their list of places they wanted us to expand to,” Rick Nicholas, VP of Colocation at Hivelocity said in a statement. “In addition to Los Angeles, New York City was right there at the top of the list. As part of our national expansion strategy we intend to seek opportunities in New York City with the hopes of an announcement there before the end of this year.”

Hivelocity recently launched its second data center in the Tampa area to provide 30,000 more square feet of bare-metal dedicated servers, private cloud environments and colocation, and also serves customers out of Miami and Atlanta.

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  1. Nice, congrats!

  2. Millitzer Capital represented RackAlley in this transaction.