Sunday, October 22, 2017

Digital Realty, Equinix and Microsoft all targeting Silicon Valley for data centre expansion

Strong demand for hosting services in the region is drinking up data centres capacity at speed forcing new builds.

The Silicon Valley region has in the past few weeks seen a surge in data centre expansion projects from some of the largest services providers including Digital Realty, Equinix and Microsoft.

First, in the middle of September, Equinix announced the building of a $122m facility named SV10 at its Great Oaks campus in San Jose. The site’s initial phase will add more than 37,000 sqf of colocation space.

This Tuesday, was Microsoft’s turn to pursue expansion in the San Francisco with $73.2m spent on the acquisition of a 65-acre piece of land north of San Jose. According to reports, that land will be used to build a data centre.

And now it is Digital Realty who is announcing the expansion of its Silicon Valley Connected Campus with a 6MW facility in Santa Clara, in an investment expected to reach approximately $75m.

The data centre is scheduled to become operational in the first quarter of 2018, and will add to Digital Realty’s Silicon Valley portfolio of 17 properties totalling over two million square feet with 99 megawatts of IT load.

Backup up the reason on why the company is building its 18th data centre in the region, Digital Realty said its existing holdings in Silicon Valley are almost fully leased.

Kelly Morgan of 451 Research, said: “Demand for data centre space in Silicon Valley remains robust.”

Digital Realty Chief Executive Officer A. William Stein, said: “The expansion of our Silicon Valley Connected Campus demonstrates our commitment to supporting customer growth.  We are pursuing LEED gold certification for 3205 Alfred Street, building upon our commitment to sustainability.

“The new facility offers a comprehensive set of data centre solutions, from single-cabinet colocation and interconnection requirements, all the way up to multi-megawatt deployments.  This flexibility helps reduce complexity and accelerate business growth by meeting customers’ needs for space, power and connectivity.”