Telx (now Digital Realty)
Digital Realty Trust, one of the world’s largest data center providers and the world’s largest provider of wholesale data center space, ...
Digital Realty Trust, one of the world’s largest data center providers and the world’s largest provider of wholesale data center space, has completed its $1.89 billion acquisition of Telx, just about doubling the size of its retail colocation business.
The acquisition is symbolic of the changes the business of leasing data center capacity is going through. Digital was an industry pioneer that perfected the art and science of being a type of data center landlord whose involvement with the customer’s infrastructure stops at the power and cooling infrastructure level, and sometimes even lower “down the stack,” where the company would simply provide a building shell and access to utility power feeds, leaving the rest of the build-out to the tenant.
But data center tenants today want more than that out of their provider, and Digital is responding as it competes against smaller players, such as QTS Realty Trust and CyrusOne, and its more seasoned rivals, Equinix being the biggest of them all.
Telx gives Digital a substantial retail colocation and interconnection business – the types of services that have traditionally taken the back seat to the San Francisco-based real estate investment trust’s wholesale business.
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