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Interxion Announces Major Data Centre Expansion With 50 Million Investment

Pan-European Carrier-Neutral Data Centre operator Interxion has announced a large expansion programme that will add another 8,000 square metres of space by the end of 2007 to its existing Data Centre footprint. BroadGroup interviewed Interxion’s Group Managing Director Anthony Foy on the company’s expansion plans.

Interxion has announced new financial funding for expansion which involves a 32.5 million flexible credit facility arranged by banks Fortis Amsterdam and Rabobank. “It is the first time that we have undertaken debt for expansion,” says Anthony Foy, “and the fact that we are doing this now, is a sign of confidence in the health of the Data Centre market.”

The company is to concentrate on fitting out space in its existing Data Centre facilities as the quickest route to market. The priority build outs will be at its London, Amsterdam, Paris and Frankfurt locations. Extra space will also be added at the Vienna facility later in the year. In most locations it is enterprise customers who are demanding new space – with 70% of demand coming from existing customers who wish to add more space to their existing application already housed in Interxion’s facility.

Anthony Foy expects the trend to continue. “Our customer research says that the most important factor in selecting a Data Centre is access to a wide number of Tier 1 providers,” he says. “Once a carrier neutral Data Centre reaches that critical mass of providers it gathers its own momentum.”

Interxion is building out its Paris 4 facility – previously a PSI-Net building – in phases of 2,500 square metres. It is also considering a 5th facility in Frankfurt and is also a green field build out in the London area. However, Mr Foy is not convinced by the need to have a site based outside the Greater London area (the M25 ring-road). “There is so much capacity being constructed outside London now that it is unlikely that the demand is there to be able to support it,” says Foy who believes that the outer London area is now oversupplied and is heading for a correction. As a result Interxion is likely to remain within the London area.

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