Last year, Telx acquired the 24,000-square-foot building at 100 Delawanna Ave. Tesh Durvasula, chief marketing and business officer for Telx, tells GlobeSt.com that the facility can be used by a variety of business, such as Internet/telecommunications outfits; healthcare and financial firms; government or educational agencies; as well as Web 2.0 companies.

Headquartered in New York City, Telx operates about a dozen data centers in North America. Although it is close to Manhattan, New Jersey offers a lower cost structure in terms of real estate and power, as well as the ability to connect to worldwide telecommunication systems, Durvasula says, which makes it a popular spot for data centers. "You need to be able to talk to many networks to be a global player and many of those networks are accessible when you go closer to New York and/or New Jersey," he says.

Despite the downturn, Durvasula says the data center sector is seeing solid growth. "It has actually worked out to be a bit of a boon for us," he explains. "People who are trying to figure out a way to lower their operating costs have decided to outsource their data center or their technology footprint. So they have come to companies like Telx to do that. We are seeing very strong demand in our business anywhere from 20% to 35% growth year over year."

Typically, a client leases space by the square footage or takes a cabinet--which is an area between 36 and 42 inches deep and six to seven feet high. Durvasula says that Telx rents a cabinet with power for about $1,500 a month. Square footage is leased based on volume and can vary in price.

Although he declines to say how much Telx builds its complexes for, Durvasula reveals that the industry average is from $1,000 to $1,500 a square foot that includes 150 watts of power per foot.

Telx plans to build out another 6,000 square feet at the facility here in early 2010. However, Durvasula says no plans are under way to build another facility in New Jersey.

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