Jun 30, 2021

Cyxtera expands US presence in Silicon Valley and Chicago

3 min
Prime Data Centers' Santa Clara, California, Facility
Cyxtera’s US footprint now includes more capacity in Santa Clara and Chicago, as well as a new data centre scheduled to come online in 2022.

Florida-based data centre operator Cyxtera, in response to growing demand in some of the US’ fastest-growing data centre markets, is expanding its footprint in Chicago and Silicon Valley.  

“Our customers and partners require access to world-class colocation services and seamless interconnection solutions in top tier markets,” said Nelson Fonseca, President & CEO of Cyxtera, in a statement to the press. 

Fonseca added: “By adding a new facility in Silicon Valley and bringing more capacity online in our existing facilities there and in Chicago, we’re able to continue delivering Cyxtera’s innovative solutions to even more of our existing and prospective customers.”

Silicon Valley 

In order to expand its leased capacity in the US’ capital of tech, Cyxtera has pre-leased the entirety of a 9 MW data centre in Santa Clara

The facility, which is owned and operated by Prime Data Centers, is currently under construction and, when completed, will deliver around 121,000 square feet of space across four floors. 

Jeff Barber, EVP Sales and Marketing at Prime, commented that Cyxtera’s global reach and footprint make them a key partner in Prime’s efforts to expand its presence, both in the US and overseas markets. "Prime strives to develop creative and transparent partnerships such as this, where both parties can realise not only economic benefits but also gain efficiencies via unique and flexible contract structures designed to support the specific needs of the tenant,” Barber added in a statement to the press. 

Australian multinational investment firm Macquarie Capital recently committed to investing $5bn into Prime Data Centers - an impressive sum, given the company’s relatively small regional footprint that remains confined to California - in order to spur the company’s attempts at developing a more globalised footprint. Currently, in addition to its facilities in California, Prime has revealed that it has active developments underway elsewhere in the US, as well as in Europe. 

 In addition to the pre-lease of Prime’s Santa Clara campus, Cyxtera is adding approximately 1.6 MW of capacity at its SFO1 facility in Silicon Valley. The expansion comes, Cyxtera announced, in response to “increasing demand from customers for premium retail colocation services to enhance business performance and facilitate their digital transformation efforts.” 


In a less-sizable expansion, Cyxtera is also growing its existing footprint in Chicago with the addition of 2 MW of capacity to its ORD2 data centre, located close to O’Hare International Airport. 

“The world-class quality of Cyxtera’s data centre facilities in top-tier markets continues to drive robust demand from our existing and prospective customers,” said Randy Rowland, Cyxtera’s Chief Operating Officer. “In analysing the opportunity to grow our presence in both Silicon Valley and Chicago, we saw significant upside potential to drive growth for our business while delivering the leading-edge solutions our customers have come to expect from Cyxtera.” 

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Aug 2, 2021

Microsoft hyperscale plans prompt Lab3 New Zealand launch

2 min
The launch of Lab3 in New Zealand is in response to surging cloud demand and Microsoft’s hyperscale data centre investment.

Lab3, an Australian cloud migration specialist, has announced it is launching in New Zealand after being prompted by a surge in demand for cloud services and Microsoft’s investment into hyperscale data centres. 

The company, which was founded in 2017, has appointed David Boyes as Chief Executive Officer and Rich Anderson as Chief Operating Officer. According to Companies Office records, Boyes and Anderson each have a 10% share in Lab3’s New Zealand business.  Commenting on cloud migration, Boyes said: “Across New Zealand, in government and every industry sector, organisations are looking to migrate to the cloud to modernise their technology environments.” He added that the Coronavirus pandemic was fuelling a “ need to tap into the power of data, facilitate remote work and meet public expectations of a virtual world.”

Chris Cook, Group CEO of Lab3 said the business was "first and foremost about client success" which drives the company’s product innovation and motivation to expand into New Zealand. “We look forward to working closely with Microsoft to deliver more for New Zealand clients,” he said.

Microsoft’s New Zealand hyperscale data centre investment plan

Microsoft’s investment into a hyperscale data centre region in New Zealand meant the resulting facilities will aim to provide several organisations with access to the security and scalability of a public cloud without sending data offshore.

Vanessa Sorenson, Managing Director of Microsoft New Zealand, said: “We’ve seen a tremendous acceleration in cloud migration over the past year as organisations have responded to global disruption and conversely, recognised the global opportunities a digital operation brings. 

“Our research with IDC shows public cloud technologies are set to create 102,000 local jobs and add [NZ]$30 billion to the New Zealand economy over the next four years, so we’re delighted to welcome a partner of LAB3’s calibre to New Zealand, to help more organisations realise those gains even faster," she added. 

Lab3’s clients include several fintech organisations, a global software vendor, Australian federal and state government agencies, and insurance and banking corporations. The company employs over 200 staff and has three advanced specialisations across migrations, Azure virtual desktop, and security. 


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