Switch pays $420mn for Data Foundry, launches “Fifth Prime”
Nevada-based, exa-scale data centre operator, Switch, has plans to significantly expand its presence in the southern and central US. On Monday, the firm revealed that it has reached an agreement to acquire Texas-based data centre operator Data Foundry in a $420mn all-cash transaction.
Switch Founder and CEO Rob Roy said that he was “extremely pleased” to have reached an agreement with Data Foundry, adding that the “acquisition extends Switch’s national reach and enhances our ability to serve Texas and the Central US region with low latency connectivity, while also providing critical geographic and revenue diversification with robust expansion potential to accelerate long-term growth and value creation.”
Courtesy of Switch
Data Foundry’s portfolio consists of four multi-tenant data centres - three in Austin (with the potential to expand to 44 MW of total capacity) and one in Houston.
The addition of these facilities brings Switch’s total footprint to 16 data centres spread across six US locations, including the company’s four pre-existing Prime regions and now its fifth Prime located in Texas.
Switch - largely thanks to the influence of its CEO, Rob Roy - has a unique approach to offering data centre solutions. The company focuses entirely on the US market and currently operates some of the , including the campus in Tahoe Reno, Nevada (as well as its other “exa-scale” campuses, , the Core in Las Vegas, and The Keep in Atlanta, which conspire to divide the US into different latency zones).
Thomas Morton, President of Switch, cited Data Foundry and Switch’s shared focus on high-quality data centres and innovative approaches to engineering attracted the company to move forward with the acquisition.
“These data centres are really, really high-quality assets,” said Morton to Data Center Frontier. “They’re very high-design, and there will be no need for us to retrofit (to have consistent standards).”
“Data Foundry is proud to partner with Rob Roy and the Switch team in this transaction that we believe will carry forward our company’s rich history of innovation in Texas, and will result in tremendous long-term benefits to our customers and all stakeholders of the combined business,” said Carolyn and Ron Yokubaitis, Co-Founders of Data Foundry.
The transaction is expected to close some time before the middle of the year, and remains subject to regulatory approval.
NKG1 opens BDx Nanjing data centre campus
Big Data Exchange (BDx), a pan-Asian data centre company has launched its Nanjing data centre campus in China with the opening of its first facility, NKG1. The company said they “celebrated” the launch of the campus, located in the Yangtze River Delta, one of the nation's richest regions and its largest import and export base.
Following its certificate of completion from the Urban and Rural Construction Bureau of Jiangning District in Nanjing City, the NKG1 campus is “now serving customers”. Construction on the Nanjing campus began in February last year.
"We worked through the challenges of completing a major construction project during the peak of the pandemic because customers were anticipating this launch to support an unprecedented surge of growth and capacity requirements”, said Bill Gao, EVP & Chief Executive Officer of BDx Greater China.
"The launch of NKG1 enables BDx to have new world-class data centre infrastructure in China. It also lays a solid foundation for BDx to provide OTTs, financial services institutions, and Fortune 500 MNC customers with high reliability, high redundancy, and low latency solutions”, he added.
What does the NKG1 data centre include?
According to BDx, the NKG1 facility is the first data centre in the city to earn the Uptime Institute Tier III Certification of Design Documents and offers 4MW of IT power for colocation. NKG1 is powered by two separate 10-kilovolt feeders from two substations that aim to provide the NKG campus with 60MVA of total power sanctioned from the grid.
During COVID-19, BDx says that its design and construction team focused on safety to ensure that the project was completed safely and without incident. This enabled the company to add critical capacity to this region and respond to the accelerated shift to digital environments that caused a surge in demand for data center services. “Research shows that demand hasn't dropped as the economy reopens”, BDx said.
The launch of NKG2
Due to rising demand in China’s data centre market, BDx plans to launch the second phase of its Nanjing campus, NKG2, by the end of this year. “NKG2 is designed to be minimally manned and almost lights-out — a reigning philosophy across BDx's data center cluster. In addition, its highly automated features make for a more sustainable data center environment”, the company said.