California Colocation

December 27th, 2011 | Posted by admin in Editorial

With a giant tech industry in Silicon Valley, and the heart of the entertainment industry in Los Angeles, millions of square feet of data center floor space have been built to service the demands for California colocation.

California Colocation Hot Spots

The popular places in California for colocation include metro areas such as Sacramento, San Francisco, Silicon Valley (San Jose area), Los Angeles and San Diego. The most popular facility in California is the One Wilshire, in Los Angeles, housing the worlds most densely populated meet-me-room.

Driving the Demand for Colocation in California

The needs of local, IT intensive companies, along with a robust telecommunications infrastructure to Asia from North America, comprise the main two forces behind the demand for California Colocation.

High-cost Colocation

California isn’t a low-cost place for Colocation either, which drives some business out of state to low-cost Utah (Oracle, Twitter and eBay) or even Quincy, Washington (Intuit and Yahoo!). The average cost of commercial power in Utah is $0.0631 per kW/h and in Quincy, WA data centers are purchasing power at a rate between $0.019 and $0.025 per kW/h. California’s power costs are significantly higher, at $0.1238 per kW/h, naturally pushing away power consuming IT infrastructures toward lower-cost areas.

US Commercial Power Rates

California’s High Risk for Natural Disasters

California has a high risk for natural disasters, and experiences frequent earthquakes and large wild-fires. This high-threat of a natural disaster drives many colocation customers to seek safer locations off the coast. Phoenix, Las Vegas, Portland, Sacramento and Salt Lake City have experienced tremendous growth as second-tier data center markets due to their low risk of natural disaster.

Presidential Declarations Map

Presidential Disaster Declaration Map from 1964 to 2007

California Colocation Data Centers

Companies with a data center facility in California include:

Ayera Technologies (Modesto)
AT&T (San Jose, Irvine, Hawthorne and Redwood City) (Romoland)
Advanced IP (Anaheim)
BAIS (Santa Clara)
Cogent Communications (Anaheim, Los Angeles, Oakland and Pasadena)
Colocation America (Los Angeles (5) and San Francisco)
CoreSite (Los Anageles (2), Milpitas and San Jose)
Cyberverse (Los Angeles)
Datapipe (San Jose)
DigiLink (Marina del Rey)
Digital Realty Trust (El Segundo, Los Anageles, Rancho Cordova, San Francisco (2) and Santa Clara (5))
Digital West Networks (San Louis Obispo, San Jose and Los Angeles)
Downtown Colo Corporation (Los Angeles)
Downtown Properties Holdings (Los Angeles)
DuPont Fabros Technology (Santa Clara)
Equinix (San Jose (3), Santa Clara, Sunnyvale (3), Palo Alto, Los Angeles (3) and El Segundo (2))
Fastmetrics (San Francisco (2))
Fortune Data Centers (San Jose)
Grubb & Ellis (Concord)
Hurrican Electric (Freemont)
IC2 Holdings (Anaheim)
Impulse Advanced Communications (Santa Barbara and Goleta)
Internap (Santa Clara)
IS West (Agoura Hills)
KD-Web (San Jose)
Latisys (Irvine)
Layer 42 Networks (Mountain View and Santa Clara)
MarquisNet (Los Angeles)
Net2EZ Managed Data Centers (Los Angeles (2) and El Segundo)
PEER1 (Los Angeles, San Jose and Fremont)
Quality Technology Services (Santa Clara (2))
Qwest (Burbank, Sunnyvale and Sacramento)
RagingWire (Sacramento)
redIT (San Diego (2))
ScaleMatrix (San Diego)
Silicon Valley Colocation (Santa Clara)
Silicon Valley Telecom & Internet Exchange (San Jose)
SMH Colocation (Anaheim)
SoftLayer (San Jose)
SunGard Availability Services (Sacramento, San Ramon, Cypress and San Diego)
Telekenex (Santa Ana)
Telx (San Francisco, Santa Clara (2))
Terremark Worldwide (Santa Clara, San Jose (2), Pleasanton, Los Angeles)
UnitedLayer (Los Angeles, San Francisco)
Vantage Data Centers (Santa Clara (3))
Vertex SSX (Los Angeles)
Virtustream (San Francisco)
zColo (Los Angeles)

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2 Responses

  • Jake Wilson says:

    It seems like the major appeal of CA colocation to a CA-based business is just the proximity to their equipment. Otherwise, those cheaper out-of-state colocation providers seem like the way to go when the goal of every business is saving/making money,

  • todd says:

    I agree with what Jake said. The only reason a company would likely want to house their equipment in California is to be capable of doing their own tech work without using contracted support. Otherwise it would just be an extravagant waste of funds.

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