DatacenterDynamics reports on Google's move to remove 111 8th ave data center space off the market.
Google takes all available space at key NYC carrier hotel off market
Future of data center providers at 111 8th Ave. uncertain
Published 20th May, 2011 by Yevgeniy Sverdlik
Following its acquisition of one of East Coast’s largest carrier hotels at 111 8th Ave. in New York City, Googlehas taken all the space that was available in the building off the market. The building is home to a number of commercial data center providers, including Digital Realty Trust, Telx and Internap, among others.
I speculated that Google could use the space in 111 8th for carrier negotiations.
Google now owns a premium networking access point in NYC, the biggest concentration of money in the USA with the financials, stock exchanges, and other businesses.
As Google negotiates carrier access in various markets, it can offer a presence in 111 Eighth Ave. This can change price points, and guarantees of service and access.
If Emerging Market Telecom sets up a relationship with Google, and agrees to a presence in 111 Eighth Ave, then the more the Emerging Market Telecom needs the location due to a variety of economic and technical reasons, the value works for Google.
Did Google just buy one the biggest bargaining chips it could have to negotiate access to WW Telcos?
With Centurylink's purchase of Savvis and Verizon's purchase of Terramark could they do what Google is thinking? It is interesting to think one building is more valuable that Savvis or Terramark.