Equinix Selling 16 U.S. Data Centers
September 4, 2012
Equinix, whose data centers house exchanges such as Direct Edge in the United States and BATS Chi-X Europe in England, said it plans to sell 16 data centers in North America.
The 16 centers will be sold for $75 million to an investment group comprised of 365 Main, Crosslink Capital and Housatonic Partners. The sale will be completed at the end of the year.
Equinix will exit nine business markets after the sale closes. These include Buffalo, Cleveland, Detroit, Indianapolis, Nashville, Phoenix, Pittsburg, St. Louis and Tampa. The remaining seven centers are in markets where Equinix believes it has sufficient capacity remaining, to meet customer demand.
These sites include Equinix CH6 (427 La Salle, Chicago), DC9 (11513-19 Sunset Hills Road, Reston, VA), DA5 (4101 Bryan St., Dallas), NY10 (65 Broadway, New York), PH2 (3701 Market St., Philadelphia), SE1 (1914 Third Ave., Seattle), and SV7 (534 Stockton Ave., San Jose).
Direct Edge is housed at a facility known as NY4 in Secaucus, N.J. BATS Chi-X Europe operates at Equinix LD4 in Slough, near London.
The 16 sites represent approximately 280,000 total gross square feet of data center space.
Equinix customers in the 16 data centers will be transferred to 365 Main. Additionally, key employees who have experience with these sites and their customers will be joining 365 Main.
“We believe the divestiture of these assets will allow us to focus our capital and energy on our most productive data centers,” said Charles Meyers, president of the Americas for Equinix.
“We have been continuously evaluating the data center market and believe the opportunity to enter 16 U.S. markets creates a solid platform for 365 Main,” said Chris Dolan, president and founding partner, 365 Main. “
Equinix said the 16 data centers produce less than 2 percent of its annual revenues.
365 Main has built and sold multi-tenant data centers since being founded in 2002 by Chris Dolan and James McGrath, .
Dolan was co-founder and managing partner of Teutonic, Inc., a Bay Area design management firm, previously held management positions with The Clark Construction Group, Inc., as well as HITT Contracting, in the Washington, D.C., area.
McGrath once served as Regional Construction Manager for MFN, Inc., a provider of network infrastructure and services.