Cologix Power Ahead in Canada
Data center provider Cologix has obtained two large wholesale colocation data centers in Montreal, to be added to their list of seven facilities already in that location, having purchased the Montreal-based hyperscale specialist, COLO-D.
The deal of Cologix acquiring COLO-D is based around the deepening of the data center provider offerings in a key market. The acquisition is set to continue the development of Cologix, who is seeking to grow beyond its principal business of colocation and interconnection services in regional hubs, to offer larger footprints in hyperscale markets.
Cologix obtaining COLO-D adds 50 megawatts of wholesale data center capacity in the Montreal market, in which Cologix stands in first place in the interconnection business. This deal adds to the big week that Montreal had as a location, following Vantage Data Centers’ $200 million acquisition of 4Degrees Colocation on the 18th of this month.
This deal emphasizes how important connectivity is in the fast-growing hyperscale data center business, as facilities who specialize in interconnection provide ready access to cloud platforms in wholesale data centers.
“The COLO-D acquisition is representative of our investment and commitment to offering tethered hyperscale data centers in order to meet and exceed the needs of the rapidly growing hyperscale edge and cloud connectivity markets,” said Bill Fathers, Chairman and CEO of Cologix.
“COLO-D and Cologix combine the necessary physical infrastructure with the cloud and network on-ramps to a robust connectivity ecosystem that hyperscale’s require.”
Cologix is currently the leader in wholesale colocation in Montreal, and have plans to invest $500 million in the region in 2019.
Montreal is hugely popular with cloud providers due to the abundance of cheap hydro power from the local company Hydro Quebec, which is available at far cheaper prices than options in Toronto. For this reason, companies like Google and Amazon Web Services have opened cloud regions in Montreal in recent years.
In relation to COLO-D, they have 2 major data centers. ‘D1,’ the first one, is a 20MW, 11,000 square meter facility located 50 miles outside Montreal and halfway to Québec City.
In 2016, ‘D2’ opened 10km away from downtown Montreal at 35MW capacity, with 17,000 square meter of space. The two data centers located in different climatic and seismic zones, which according to COLO-D makes them a good disaster recovery plan.
Cologix deal of acquiring COLO-D includes the 22-acre plot where COLO-D planned to build a new 150MW facility called ‘D3.’ This plan was announced with an anchor tenant and before the Cologix deal, but with Cologix’s announcement of having plans to continue major investments, it can be assumed that this project will proceed as planned.
“Cologix has continually demonstrated an unmatched commitment to the needs of the region in terms of data center capacity, resources and infrastructure, and we’re pleased to now be part of their team. The combination with Cologix will further strengthen COLO-D’s market position and allows us to accelerate our growth in this market and beyond.” said Patrick David, President and CEO of COLO-D.