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Telehouse and DataGryd Combine Efforts to Attract Co-location Business in the Big Apple

October 29, 2015

Telehouse recently announced that it would partner with DataGryd to offer co-location services at the latter’s facilities at 60 Hudson Street in New York. The companies feel that by combining their strengths, they give customers in Manhattan a wide range of selection when it comes to services.

Staten Island-based Telehouse America provides data center, managed IT, and disaster recovery solutions. It operates in 46 different countries around the world and is a subsidiary of KDDI, a Tokyo-based telecom.

DataGryd Data Centers LLC is a data center in the 60 Hudson Street building, with a presence on eight of the building’s 25 levels, including the basement. Three of these levels are available for data center space.

The 60 Hudson Street building has a long history as one of New York’s iconic buildings. Completed in 1930, for the first 43 years of its existence, it was the headquarters for Western Union. The building now serves as a major telecommunications hub for the region. According to the building’s website, several floors are available, mostly for telecom use, but some office and retail space is also available.

Image via Shutterstock

The DataGryd’s datacenter is designed to be more environmentally conscious. It uses natural gas to power gas turbines that supply power to the data center and the local power grid. It has backup diesel generators ready in case of a power outage. The system uses water from cooling towers and chilled water created from gas turbine waste heat to cool the center. This system, known as the Microgryd Shell was built in accordance with strict federal regulatory guidelines.

To some, co-location may not be a very interesting business. What’s so exciting about housing your server somewhere else and paying rent, when autonomous vehicles are a far more interesting topic?

In spite of that perception, a report by MarketsandMarkets suggests that there is lots of interest in co-location. Between 2014 and 2019, the date center co-location market is expected to nearly triple, from $16.65 billion to $49.57 billion, a CAGR of 17.6 percent.

The reality is that DataGryd isn’t making money off three vacant datacenter floors with 180,000 square feet of unused space. It needs to get customers using that space quickly so it can make money. DataGryd and Telehouse are hoping that the best way to achieve that goal is by combining efforts to offer a wide range of services. Whether enough customers in one of the world’s largest business centers buy in remains to be seen, but it appears on paper at least, to be a sound strategy. 

Edited by Maurice Nagle

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