Sabey Data Centers News

U.S. Department of Energy Logo

For Release: June 21, 2018

The U.S. Department of Energy (DOE) recognizes DOE’s Better Buildings Challenge partner, Sabey Data Centers, for the energy productivity achievements of its Intergate.Quincy multi-tenant data center. As a partner in DOE’s Better Buildings Challenge, Sabey committed to improving its energy performance by 20 percent over a 10-year period, and to sharing the results and strategies with other companies. The company surpassed its original goal of 20 percent by 2024, improving energy performance across its more than 3 million square feet of data center space by 24 percent from a 2014 baseline.

“Through the DOE’s Better Buildings Challenge, data centers like Sabey’s are using energy more productively,” said Kathleen Hogan, deputy assistant secretary for energy efficiency in the Office of Energy Efficiency and Renewable Energy (EERE) at DOE. “We applaud Sabey for sharing its results and best practices with other companies.”

A majority of the data center locations operated and maintained by Sabey are multi-tenant colocation facilities, where each customer may have varied needs, including different server enclosures and non-standard IT equipment. This can make it difficult to implement facility-wide energy-efficient designs and technologies.

To overcome these challenges and achieve its energy productivity goals, Sabey incorporated several energy conservation measures, including implementing indirect evaporative cooling computer room air handlers (CRAHs) and segregating uninterruptible power supply (UPS) batteries to reduce electrical energy required to cool the data center. Sabey also selected a highly-efficient UPS system and utilized variable speed drive (VSDs) fans to control fan speed and match server load requirements.

Ultimately, the project has exceeded Sabey’s expectations, cutting infrastructure energy intensity by 57 percent. These savings translated into more than $200,000 in reduced annual energy costs.

In addition to the energy and cost savings passed on to customers, the integration of energy conservation measures allows for a very simple data center environment control strategy, leading to an increase in the overall reliability and customer satisfaction with the Intergate Quincy data center. Sabey was recently recognized by DOE as an example of leadership in action in the 2018 Better Buildings Challenge Progress Report.

Through the Better Buildings Challenge, DOE works with more than 350 market leaders that represent more than 4.4 billion square feet of building space. Partners reduced their energy intensity by an average of two percent per year, keeping them on track to meet the program’s 10-year, 20% reduction goal. Additionally, through the Better Buildings Challenge, more than 40 Financial Allies have extended more than $12 billion in capital for efficiency projects. Visit the Better Buildings Solution Center to learn more.

Sabey commences construction of Building B, a new, two-story data center building on campus; completes a new data hall in recently completed Building C

Ashburn, VA, June 4, 2018 – Seattle-based Sabey Data Center Properties announced today that it will continue the development of its Ashburn Data Center Campus.

The company will deliver AC4, a 1.8-megawatt data hall in the first campus data center building and commence construction on the second on-campus structure, Building B. When fully built out the new two-story, pre-cast concrete structure will deliver 22 megawatts of mission critical power distributed within about 160,000 SF of data hall space. Fully commissioned space in this second building will begin to deliver by the end of 2018 or early 2019.

Robert Rockwood, President, Sabey Data Centers, said, “Most importantly, our new development will continue to deliver Sabey Value: absolutely reliable, secure, connected and super-efficient solutions with the market’s lowest TCO. By commencing our second building now, we also take construction risk off the table for our customers looking for near term delivery.”

Building B has been designed with two stories and 22 MW in order to make the most efficient use of the power capacity provided by an on-site Dominion Energy substation.

Mr. Rockwood added, “We have made tremendous progress for our customers in Northern Virginia since we broke ground for Intergate.Ashburn in May 2016. In less than 24 months we have completed construction and commenced operations in Building C, met every one of our delivery commitments, leased all commissioned space, and have now begun construction on Building B for completion later this year.”

The construction team for Building B includes:

  • Architect – Corgan Associates Architects,
  • Structural Engineer – Cardno
  • Civil Engineer – Dewberry
  • Electrical & Mechanical Design – Southland
  • Electrical Contractor – Dynalectric
  • Mechanical Contractor – Southland
  • Earthwork – Independence Excavating

About Sabey Data Centers

With a portfolio of more than three million square feet of mission critical space, Sabey Data Center Properties is one of the largest privately owned multi-tenant data center owner/developer/operators in the United States.  Sabey specializes in scalable, custom-built solutions including data center ready shell space and fully turnkey data centers managed by Sabey’s award-winning critical environment staff. Consistently recognized for low cost hydroelectric power, operational excellence through its world-class data centers and sustained uptime, Sabey is proud to provide data center services to many of the world’s top financial, technology and healthcare companies.  https://sabeydatacenters.com

Seattle and Stockholm – 11 April, 2018Sabey Data Center Properties, serving Seattle’s data center market  for more than 25 years and currently with over 285 MW of capacity in place and in operation, today announced that it has tapped Telia Carrier’s 100G-enabled #1 ranked IP backbone and transmission network to provide scalable capacity and dependable connectivity to the Seattle metro area. This expansion enables Sabey to serve customers at the Sabey Intergate.Seattle campus with the fast delivery speeds and customer-centric experience that its customers demand.

Intergate.Seattle is Sabey Data Center’s flagship property and is the largest privately owned multi-tenant campus on the west coast. Composed of two campuses, eight buildings and more than 1,373,000 square feet of data-center space, Intergate.Seattle has the power and capacity to meet the immediate and future requirements of all categories of data center customers.

“We are proud to partner with Sabey Data Center’s Intergate.Seattle campus. Our reliable network services enable Sabey to deliver the flexibility and capacity its customers need,” said Stephen Hartman, head of Telia Carrier’s North American Region. “This partnership also demonstrates Telia Carrier’s commitment to provide diversity options in our continuing growth markets and serve more points of presence as we expand our global network.”

John Ford, Vice President and General Manager of Intergate.Seattle, said, “Intergate.Seattle provides a more reliable, efficient and cost-effective alternative to other data centers located in downtown Seattle. Our partnership with Telia Carrier adds unmatched connectivity to our value proposition.  Dark fiber and conduit systems connect all of our buildings, so Telia Carrier can support any customer located on the campus efficiently and immediately.” Ford added that the local utility provider, Seattle City Light was the first 100% Carbon Neutral utility provider and provides 92% sustainable, hydro-electric power, which is utilized by the Intergate.Seattle campus.

Daniel Meltzer, Sabey Vice President and Director, said, “Being located in Tukwila on the south end of the metro area provides good access to north-south fiber routes entering the metro area and allows for diverse connectivity from downtown Seattle. It also offers, wholesale turn-key data center space, that leverages the region’s cool ambient temperatures for “free” cooling during 90% of the year, and with 77 MW of power entering the campus from redundant feeds it can support large scale requirements.”

About Sabey Data Centers

With a portfolio of more than three million square feet of mission critical space, Sabey Data Center Properties is one of the largest privately owned multi-tenant data center owner/developer/operators in the United States.  Sabey specializes in scalable, custom-built solutions including data center ready shell space and fully turnkey data centers managed by Sabey’s award-winning critical environment staff. Consistently recognized for its reputation for operational excellence through its world-class data centers and sustained uptime, Sabey is proud to provide data center services to many of the world’s top financial, technology and healthcare companies.

About Telia Carrier

Telia Carrier owns and operates one of the world’s most extensive fiber backbones. Telia Carrier is the first to be 100G-enabled in both Europe and North America and was also the first network to successfully transmit 1 Tb/s in super channels on its U.S. network. According to Dyn Research’s global backbone rankings, Telia Carrier’s global IP backbone AS1299, is currently ranked as number one. Telia Carrier’s rapid growth and ascension through the rankings was highlighted in Dyn’s ‘‘Baker’s Dozen’ report”. The company enables worldwide connectivity by connecting more than 230 Points of Presence (PoPs) across Europe, North America, Asia and the Middle East, including more than 80 PoPs in North America alone

Learn more about Telia Carrier by visiting our website at www.teliacarrier.com and follow our news and developments @TeliaCarrier.

Seattle, January 23, 2018 – Sabey Data Centers’ Intergate.East facility in Seattle has been awarded one of the industry’s most prestigious designations of service quality and reliability – the Uptime Institute Stamp of Approval for Management & Operations.

This award is based on Uptime Institute’s independent, on-site assessment performed at Intergate.East late last year that outlines, prioritizes, and weighs behaviors necessary for data center owners and operators to achieve maximum uptime.

Robert K. Rockwood, President, Sabey Data Centers, said, “Our mission is to function as a builder, owner and operator. Rather than rely on outsourced operators, we take full responsibility and operational authority to ensure 100% uptime. Reliability is paramount.”

Uptime Institute’s Management & Operations (M&O) certification is the industry “Gold Standard.” It measures and proves operational excellence. Uptime developed its M&O program based on 20 years of historical data compiled from hundreds of data center outages. By understanding what causes failures, the group built the de facto standard to implement proactive operational processes to avoid these causes.

The M&O Stamp of Approval provides assurance that data centers housing critical infrastructure functions have passed rigorous, third-party audits and conform to practices that deliver greater efficiency.

On-site Uptime auditors evaluate five specific areas:

  • Staffing and Organization: Ensuring staff is organized/maintained to align with long-term objectives.
  • Maintenance: Minimizing failure via preventative/predictive maintenance, vendor support, resources and tracking.
  • Training: Committing personnel to each policy, procedure and unique data center requirement.
  • Planning, Coordination, and Management: Implementing/documenting programs focused on site and financial management policies, space/power/cooling capacity, and management.
  • Operating Conditions: Aligning power and cooling for all IT equipment via consistent management of capacity components and set points.

In a letter accompanying the award to John Sasser, Sabey Data Centers Senior Vice President for Data Center Operations, R. Lee Kirby, President of the Uptime Institute, said, “Congratulations on this achievement. Adherence to the Management and Operations behaviors has been proven to minimize opportunities for human error – the number one cause of data center downtime.”

About Sabey Data Centers

With a portfolio of more than three million square feet of mission critical space, Sabey Data Center Properties is one of the largest privately owned multi-tenant data center owner/developer/operators in the United States.  Sabey specializes in scalable, custom-built solutions including data center ready shell space and fully turnkey data centers managed by Sabey’s award-winning critical environment staff. Consistently recognized for its reputation for operational excellence through its world-class data centers and sustained uptime, Sabey is proud to provide data center services to many of the world’s top financial, technology and healthcare companies.

Sabey enters a strategic alliance with one of New York’s largest providers of rooftop and tower site management services

The million-dollar superstructure atop 375 Pearl Street has attracted government agencies, wireless ISPs, and fiber carriers for wireless back-up systems

New York, January 18, 2018 – Seattle-based Sabey Data Center Properties announced today that it has entered a strategic alliance with New York based Repeater Communications Group, LLC, to market and manage the development of its $1 million-dollar antenna superstructure atop Intergate.Manhattan, its 560-foot-tall facility at 375 Pearl Street in Lower Manhattan.

Since its installation last year, the triple-tier, line-of-sight connectivity array has already attracted customers including several government agencies, broadband ISPs, and others.

Robert Rockwood, President, Sabey Data Centers, said, “From atop 375 Pearl Street, line-of-sight providers can reach thousands of buildings in the metropolitan area. We are delighted to partner with Repeater Communications Group because they are tremendous self-starters. They are one of the largest rooftop site operators in the Northeast.”

Paul Eisenberg, Co-Managing member of Repeater Communications, commented, “The investment that Sabey has made in 375 Pearl Street is second to none.  This building is ideally positioned to become the premier rooftop communications hub serving downtown and midtown Manhattan as well as Downtown Brooklyn.  We are very excited to be working hand in hand with the team at Sabey to achieve this goal.”

The unobstructed, 360-degree vantage point atop 375 Pearl Street is an ideal location for enterprises that require wireless backup connectivity in the event of a fiber communications disruption, such as ISPs that offer point-to-point service, as well as wireline connectivity.

A rooftop point of presence at Intergate.Manhattan also gives customers immediate fiber access to Sabey’s 20 + on-site carriers at the Meet Me Room on the building’s sixth floor. Customers may also install a ¼-to-full rack of communications equipment on the floor directly below the roof. At present, the rooftop superstructure at 375 Pearl Street can support upwards of 300 antennas.

About Sabey Data Centers

With a portfolio of more than three million square feet of mission critical space, Sabey Data Center Properties is one of the largest privately owned multi-tenant data center owner/developer/operators in the United States.  Sabey specializes in scalable, custom-built solutions including data center ready shell space and fully turnkey data centers managed by Sabey’s award-winning critical environment staff. Consistently recognized for its reputation for operational excellence through its world-class data centers and sustained uptime, Sabey is proud to provide data center services to many of the world’s top financial, technology and healthcare companies.  http://sabey.com/datacenters/

 About Repeater Communications

For nearly 50 years, the Repeater Communications Group of companies have been providing rooftop and tower site management services throughout the northeastern U. S. and the central coast of California. The company has long-standing relationships with some of the most recognized names in real estate, as well as local, regional, national and international communications companies.  www.rfsites.com

Seattle, WA – Sabey Data Centers announced today that it has closed a financing transaction led by TD Securities consisting of a $425 million 5-year term loan and a $250 million 5-year revolver.  The transaction was upsized by $50 million amid meaningful oversubscription.

Proceeds of the term loan will be used to refinance existing property-level debt into a corporate facility, while the revolver will be used to fund capital expenditures for data center development and strategic initiatives.  In connection with strong demand trends, the Company plans to expand its data center campus in Northern Virginia, the largest and fastest growing data center market in North America, as well as in Central Washington, which benefits from low power rates and a mild climate ideal for efficient cooling.

Rob Rockwood, President, Sabey Data Centers, said, “From a strategic perspective, this transaction will provide the capital we need to stay ahead of market conditions. The data center development market is extremely active, especially with prospective tenants who are demanding large blocks of inventory as a condition for entering into a lease deal.”

He added, “The leasing paradigm has changed. Up to the recent past, data center users would move onto a campus and then build out incrementally, on an ‘as needed’ basis. This is no longer the case.”

“TD Securities is pleased to have had the opportunity to work with Sabey Data Centers on this financing transaction.  Management has done an excellent job of executing on their investment thesis and we are excited to provide the Company with ample financing capacity to support their next wave of expansion and organic growth.  We look forward to continuing to support the Company’s strategic growth initiatives moving forward,” said Ed Kim, Director at TD Securities.

In operation for 40 years, Sabey Data Centers is one of the largest privately-owned multi-tenant data center operators in the United States.  Sabey’s data centers provide wholesale data center services to many of the world’s top financial, technology, telecommunications and healthcare companies and position customers to combine key market locations with sustainable, low cost power.

Sabey owns and operates state-of-the-art data center campuses in strategic markets across the US, including Seattle Washington; Ashburn, Virginia; Quincy, Washington; and Wenatchee, Washington.  Headquartered in Seattle, Sabey Data Centers is a joint venture between Sabey Corporation and National Real Estate Advisors.

About Sabey Data Centers

With a portfolio of more than three million square feet of mission critical space, Sabey Data Center Properties is one of the largest privately owned multi-tenant data center owner/developer/operators in the United States.  Sabey specializes in scalable, custom-built solutions including data center ready shell space and fully turnkey data centers managed by Sabey’s award-winning critical environment staff. Consistently recognized for its reputation for operational excellence through its world-class data centers and sustained uptime, Sabey is proud to provide data center services to many of the world’s top financial, technology and healthcare companies.  www.sabeydatacenters.com

MOSES LAKE – Big Bend Community College and regional data centers are partnering for a new program to prepare students for data center positions.

Demand for IT professionals in eastern Washington has increased in the past decade, with an influx of major technology companies taking advantage of the area’s affordable electrical power and locating data centers in the area.

That demand has led to a partnership between Big Bend and Quincy-area data centers operated by Intuit, Microsoft, Oath, NTT DATA, Sabey Data Centers and Vantage Data Centers.

“We are working closely with the data centers to customize our credentials to train students with the skills they need,” said Tom Willingham, Big Bend computer science specialist. “Students who successfully complete this one-year program will be equipped with the knowledge needed to gain entry-level employment with one of these amazing companies.”

Students who complete the program can earn the Network Support Specialist Certificate of Accomplishment and the Systems Administration Certificate of Achievement at Big Bend, and may also have the option to earn industry certificates and a variety of relevant two-year degrees.

Big Bend has limited space for students in the program starting this fall. Some of the area data centers are working toward providing targeted financial aid assistance and on-the-job training opportunities.

To learn more about the program, contact Willingham at 509-793-2321 or by email to tomwi@bigbend.edu.

Source: ifiberone.com

Seattle, WA, June 20, 2017 – Sabey Data Centers announced today that the federal Department of Energy (DOE) has recognized the company as the data center operator that achieved the highest level of energy savings in the Department’s 2017 Better Buildings Progress Report.

The citation by the DOE was presented last month in Washington, D.C. at the agency’s 2017 Better Buildings Summit trade conference. The Better Buildings Challenge enrolls enterprise “partners” across a broad spectrum of industry sectors. In the program, DOE challenges companies to showcase solutions to cut energy intensity in their buildings portfolio-wide by 20% over a 10-year period.

Sabey Data Centers was noted not only for having achieved its goals in 2016, but also for having the highest percentage of savings so far of all data center operators enrolled in the Better Buildings Challenge program. Second and third highest savers were eBay and Digital Realty Trust, respectively – two of the largest data center operators in the world.

Rob Rockwood, President, Sabey Data Centers, said, “To be cited as a company that has a proven approach to significant energy savings is a great honor. It’s also a testament to our operations staff’s everyday commitment to energy efficiency and the eagerness on our customers’ part to embrace these practices.”

The DOE also highlighted Sabey Data Centers’ Intergate.Quincy facility in Washington State as a “Leadership in Action” model for the industry. At the Summit, the DOE stated: “Sabey Data Center Properties has demonstrated that high efficiency design can be applied effectively in co-located data center spaces by achieving 41% savings at the multi-tenant Intergate.Quincy facility.”

About Sabey Data Centers

With a portfolio of more than three million square feet of mission critical space, Sabey Data Center Properties is one of the largest privately-owned multi-tenant data center owner/developer/operators in the United States. Sabey specializes in scalable, custom-built solutions including data center ready shell space and fully turnkey data centers managed by Sabey’s award-winning critical environment staff. Consistently recognized for its reputation for operational excellence through its world-class data centers and sustained uptime, Sabey is proud to provide data center services to many of the world’s top financial, technology and healthcare companies. http://sabey.com/datacenters/

NEW YORK, N.Y. – In recent years, the Greater New York data center market has faced several strong headwinds, including the financial crisis and its chilling effect on spending, fallout from flood-related outages during Superstorm Sunday, and a tough competitive environment for the region’s wholesale providers.

But data center professionals say the New York/New Jersey market has begun to stabilize, as leasing has gradually absorbed vacant space. The region has recently seen some new entrants, and one long-time player is reporting signs of a rebound. There’s also been the emergence of a new sub-market in Rockland County, N.Y.

The New York/New Jersey region has always been a composite data center market, segmented by geography and business models, with carrier hotels in Manhattan, connected colocation centers in Northern New Jersey, and a cluster of wholesale data centers in Central New Jersey Trends in the New York region were discussed in several panels at the recent Greater New York Data Center Summit, a CapRate Events conference held at Convene. They says the economics of power remain a challenge for New Jersey wholesale providers, with many large customers opting for the cheaper electricity and critical mass found in Northern Virginia.

As some look to the future, they see the potential for new technologies to boost the data center business in the region’s population centers.

“What will the Internet of Things or autonomous driving mean for your data center?” asks Peter Feldman, the CEO of DataGryd. “Am I going to need a much bigger data center just to control those cars? It comes back to latency, and how this is going to work.”

Cities are expected to be the focus of investment activity around autonomous cars, which could generate as much as $7 trillion of economic activity by some estimates, and generate extraordinary data traffic in major cities.

The View From Manhattan

It’s been five years since Superstorm Sandy brought catastrophic flooding to Lower Manhattan, affecting several data center buildings that lost power when their ground level fuel storage pumps failed.Sandy established new parameters for risk, prompting some companies to move uptown and others to relocate their data centers out of the region. In the hurricane’s aftermath, the Manhattan market saw several important developments: 

  • Sabey Data Centers acquired and renovated the former Verizon building at 375 Pearl Street. In addition to updating the building for modern data center space, Sabey has also retrofitted 15 floors of the building for use as office space.
  • DataGryd took over a large chunk of space at 60 Hudson Street, and made major infrastructure upgrades at the iconic carrier hotel.
  • Google acquired the city’s other marquee carrier hotel at 111 8th Avenue, but is using it for office space, and reportedly doing no new leasing to data center tenants.

That’s a lot of activity for a market that had been stable for many years. Despite Sandy and the turbulence in the financial sector, having data center space in Manhattan is essential for many blue-chip companies and service providers. Manhattan is also seeing demand from international companies.

“Asian companies are looking for footprint in the United States,” said Feldman. “The more successful Asian players have their base of big customers, and they’ll want to get to a big city like New York or Chicago or Silicon Valley.”

“The existing centers in Manhattan are continuing to see growth and are working to get more out of their footprint,” said Matthew Monaco, Senior Director at Equinix, the industry’s largest colocation provider. “You’re also seeing the emergence of interconnection density in Secaucus and several other sites in NJ.”

Monaco said many companies are pursuing a strategy where they host a small number of cabinets in New York, but place a larger footprint in New Jersey.

DataGryd’s Feldman concurred. “The hub and spoke distribution method still holds true,” he said. “We’re seeing some edge customers come to us because they need a hub to bring the traffic back.”

The importance of the city’s carrier hotels was reinforced by Digital Realty, the world’s largest data center landlord. Big-city “Internet gateways” have always been a focus for Digital Realty, and that’s still the case today, even as its footprint spreads well into the suburbs.

“We still have fairly dominant positions with our Internet gateways into the city, which is obviously focused on performance-sensitive colocation and interconnection points,” said Bill Stein, the CEO of Digital Realty. “We continue to see strong demand, be it at 111 8th, 60 Hudson or 32 Avenue of Americas.”

Evolving Market in New Jersey

For all their connectivity, the Manhattan carrier hotels have relatively limited footprints. Companies seeking larger chunks of data center space have always looked across the Hudson and housed servers in New Jersey.

Colocation hubs sprung up in Weehawken, Secaucus and Newark to provide connectivity and hosting for Wall Street firms. In 2007, developers began building wholesale data centers in central New Jersey, and soon began to win customers who might otherwise build their own facilities. There’s also a modular data center business operated in Edison by IO, which plays in both the retail and wholesale markets.

The initial strong momentum for wholesale has slowed since 2013, when the New Jersey market faced an oversupply of space.
“New Jersey is transitioning from a wholesale market to a retail colo market,” said Jeffrey West, Director of Data Center Research at CBRE. “It’s been a slow couple of years. But like California, New York and New Jersey will always be a critical market.”

“The New York/New Jersey area hasn’t kept up with markets like Northern Virginia,” said Rick Drescher, Managing Director of the Critical Facilities Group at Savills Studley. “At the local and state government level, we don’t have nearly the visibility we should.”

A key challenge is the price of electricity, which runs 15 to 16 cents per kilowatt hour in New York, and about 9 to 10 cents per kWh in New Jersey. That makes for a tough comparison with “Data Center Alley” in Ashburn, where power is 6 to 7 cents per kWh.

“That price difference is hard to overcome,” said Drescher. “If you’re building 25 or 30 megawatts, it adds up.”

The Road Ahead

The wholesale market in central New Jersey is in a transition with the arrival of two new players. In 2016 QTS Data Centers acquired the huge DuPont Fabros Technology NJ1 data center in Piscataway. DuPont Fabros built the facility seeking large-footprint colo deals, but several industry veterans say QTS’ broader mix of products – it sells wholesale space, retail colocation and managed services – is a better fit for the current New Jersey market.

There’s another new player just up the road in Somerset, where CyrusOne has acquired a wholesale data center built by Sentinel Data Centers. In recent years, CyrusOne has been one of the fastest-growing players in the wholesale market.


Panelists at the CapRate event see progress ahead for the New Jersey market.

“There will continue to be good absorption,” said Monaco. “It’s still a buyer-friendly market. The supply will be absorbed over time.”

“I think pricing is going to be more aggressive,” said Scott Palsgrove, VP of Sales and General Manager for New Jersey at Cologix, which has data centers in Parsippany and Ceda Knolls. “We’re willing to get customers in the door, because we believe they’ll grow with us. There seems to be a lot of capacity in this market, and it’s not moving as fast as it should.”
Among the major competitors in the market, CoreSite is notable for its upbeat assessment of market conditions.

“We feel good about the funnel in the New York/New Jersey market,” said Paul Szurek, the CEO of CoreSite, in a recent conference call. Szurek said CoreSite has signed 20 new and expansion leases in the region in the first quarter of 2017, more than 60 percent above the trailing 12-month average.

“Leasing at NY-2 (in Secaucus, NJ) was quite robust accounting for two-thirds of leases executed, and the majority of new logo signed in this market,” Szurek said. “We see a steady stream of leasing activity among smaller customer deployments, which is weighted toward the enterprise vertical including financial services and healthcare.”

Tested by Time, Trials

There’s also been activity in Rockland County, where a new sub-market has emerged. The current nexus of activity is Orangeburg, where Sentinel Data Centers and Russo Development partnered to build a new data center for Bloomberg, and 1547 Realty opened a data center with Green House Data as the anchor tenant. Meanwhile, JP Morgan Chase has expressed interest in acquiring land at the former Rockland Psychiatric Center for use as a data center.

The activity in Orangeburg is focused on financial firms, a promising development for the region’s data center scene, which is stabilizing as Wall Street has selectively resumed interest in local IT operations.

“I think we’ve gotten rational and operators have taken a slower approach,” said Matt Gleason, GM for the Northeast for CoreSite. “This market will go as the financial services guys go. It’s that kind of market.”

Feldman notes that the data centers in New York have unusual experience with resiliency and recovery, noting that 60 Hudson Street and other NY facilities “have been tested by terrorists and acts of God.”

Source:

coresite-sv7-740

After decades of building out, the data center industry is building up. Leading developers are now building multi-story data centers, boosting their capacity to house IT gear by adding vertical space. The trend is most pronounced in the two hottest data center markets, Northern Virginia and Silicon Valley, where it’s becoming more difficult to find development sites for new construction projects.

While the shift to multi-story buildings may not seem like a hot real estate trend, it’s a new direction for data center construction, which for many years focused on sturdy, single-story cement fortresses.

An example is Santa Clara, the data center capital of Silicon Valley, where CoreSite and Vantage Data Centers have shifted to four-story designs.

“Land is highly constrained here,” said Sureel Choksi, the president and CEO of Vantage Data Centers. “Because there’s not much land here, data centers are being built taller to maximize capacity. I think that we’ll continue to see that across the industry.”

The trend is coming to Ashburn, the focal point of data center development in Northern Virginia. Ashburn is home to about 5 million square feet of data center space, consisting almost entirely of one or two-story facilities.

“A lot of new buildings are coming in as two-story projects,” said Buddy Rizer, the Executive Director for Economic Development in Loudoun County. “Several users are interested in going higher than that. We want people to develop more, so we will probably allow people to build four-story data centers in Loudoun.”

Digital Realty, CoreSite and RagingWire Data Centers are among those that have recently built multi-story data centers in Loudoun County. Equinix, CyrusOne and Sabey Data Centers are planning two-story facilities.

“I think people are finding two-story infrastructure more acceptable,” said Douglas Adams, the CEO of RagingWire. “I think that’s where things are going.”

From Carrier Hotel to Suburban Sprawl

From the earliest days of the Internet boom, servers and telecom equipment have been housed on the upper floors of skyscrapers in of major cities.

These carrier hotels, like 60 Hudson Street in New York, provide services to the nexus of business customers in the central business district of these cities. But both power and real estate are expensive, and in limited supply.

That’s why data center construction soon focused on the suburbs, and server farms grew horizontally, with single stories across larger footprints. It became common for single story facilities to spread out to make room for more capacity, spanning 300,000 to 500,000 square feet of space.

As Internet growth accelerated in 2015, Google shifted to a multi-story model, building four-story data centers in Iowa and Oklahoma. The taller facilities allow Google to pack more servers into the same real estate footprint, providing more bang for its buck on each of its huge cloud campuses.

“It’s a natural evolution of our campus strategy,” Joe Kava, the Vice President of Data Centers at Google, told DCF in a 2016 interview. “If you’re looking to preserve the amount of expansion on a campus, you look to densify and get the most out of every square foot, and that means multi-story.”

CoreSite: Focus on Land Use

While the design shift at Google drew attention to the trend, the real pioneer in vertical data centers has been CoreSite, one of the real estate investment trusts (REITs) focused on the data center sector. The company got its start as largest colocation provider at One Wilshire, the iconic 30-story telecom hub in downtown Los Angeles. It went on to build a national footprint of 20 data centers in eight major markets.

Brian Warren, CoreSite’s Senior Vice President of Engineeering and Product, said the company has a history of optimizing the yield of data center space from available real estate.

“The industry’s getting smarter about the use of land,” said Brian Warren, CoreSite’s Senior Vice President of Engineering and Product. “You have fewer locations and you have to drive efficiency in the use of land. It’s not anything new for us.”

An example: At a time when its rivals in Ashburn were building one-story facilities, CoreSite took a different approach just down the road at its campus in Reston. After retrofitting an existing structure for its first data center, CoreSite rolled out a five-story design for VA2, a greenfield build on adjacent land. The top floor houses mechanical and electrical infrastructure, with the remaining four floors dedicated to data halls for tenants.

coresite-reston

Last year CoreSite completed SV7, a four-story facility that is the tallest data center in Santa Clara. The company built several two- and three-story data centers before going even higher with SV7.

CoreSite’s strategy is to develop multi-tenant ecosystems in major markets, creating a campus environment with multiple facilities operating as one. Warren said that often involves making the most of “infill locations” – parcels of land in close proximity to existing sites. In major markets with limited development sites, that may mean working with smaller pieces of land and building vertically.

“It’s a tradeoff,” said Warren. “You have to consider the efficiencies of land relative to the additional considerations of a multi-story data center. From a structural perspective, it’s a little simpler to do one story. With multi-story, you’re pre-planning for electrical and mechanical infrastructure across multiple floors. We obviously feel the efficiencies gained (from multi-story) outweigh the additional considerations.”

One of those efficiencies is the time saved from building several vertical buildings on a single campus, as opposed to constructing lower buildings and having to procure additional land – which also means additional permitting and approvals.

“It compresses our total timeline compared to developing multiple buildings,” said Warren.

CoreSite will further refine its multi-story strategy on its newest campus in Northern Virginia. In August 2016 it bought the Sunrise Technology Park, an office development just a quarter mile from the company’s existing campus The acquisition will provide CoreSite with space to expand its Reston data center operations.

CoreSite plans to retrofit two existing buildings on the property, and then construct two new buildings to serve as connectors so staff and customers can move between data centers through internal corridors. One of the new buildings will be a four-story “infrastructure tower” that will house mechanical and electrical equipment to serve the data halls in the other buildings.

Source: datacenterfrontier.com