For a sector that has been on fire for several years now, the colocation and data center space has had relatively few companies available for investment by the general public in the US marketplace. And with Switch and Data now part of the growing Equinix (NASDAQ:EQIX, news, filings) empire, there are suddenly fewer still. There are of course the two REITs: Digital Realty Trust (NYSE:DLR, news, filings) and Dupont Fabros Technology (NYSE:DFT, news, filings), and there are Terremark (news, filings) [a subsidiary of Verizon (NYSE:VZ, news, filings)] and Savvis (news, filings) [a subsidiary of CenturyLink (NYSE:CTL, news, filings)] , but nevertheless there has been a common perception amongst some that Equinix is the only big game in town. That era seems about to end as a group of dynamic companies are rapidly moving to restore depth to the field.
- Coresites is apparently planning an IPO worth some $230M to which it will add senior debt and a credit facility to amass a warchest of $500M or more. The company will apparently be a REIT, in the vein of Digital Realty and Dupont Fabros and lists some 2M square feet of rentable space in its portfolio.
- Telx made their S-1 filing in March, offering details on their own $100M plans after raising money for expansion last year as well.
- European colocation specialist Interxion is also apparently taking the US IPO plunge. This one has been rumored for years, but apparently the time is finally ripe. The company generated $226M in revenue in 2009, which makes it somewhat larger than Switch and Data was.
I suspect there will be more as well. Amongst other private companies who are aggressively expanding in US markets are QTS, which bought that monster Qimonda facility in Richmond, and Telehouse which has been rather noisy as well over the past year. Are there others that we should be keeping an eye on?
Oh yes, there’s also Cincinnati Bell, which appears to be moving into position with its purchase of Cyrus One from ABRY. More?
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Although not a pure play in the Data Center segment, tw telecom has Co-Location facilities in practically all their markets. Nice piece of their business which also gets them additional, high margin, on-net network services.