Roundup: PEER 1, Qwest, Global Switch

Here’s a roundup of some of this week’s headlines from the data center and hosting industry:

PEER 1 Signs Deal with Capgemini Canada. PEER 1 (TSX: PIX) announced that it has  signed a five year colocation agreement with Capgemini Canada.  Capgemini will be taking a full Performance Optimized Data Center (POD) of space in the PEER 1 Toronto data center. The 40,000 square foot data center opened in January of this year. “The relationship between Capgemini Canada and PEER 1 Hosting is a powerful one in the Canadian marketplace and is designed to support a robust, secure, predictable service delivery for clients in a number of different industries," said Kim Lesley, Vice President of Capgemini Canada.

Global Switch talks expansion plans. UK commercial property magazine Estates Gazette interviewed Executive Chairman for Global Switch, John Corcoran. Explaining that hundreds of millions of pounds have been invested in the company, he notes that 30 percent of the Global Switch portfolio was occupied in 2005 and now 80 percent is occupied. The company has recently bought sites in Singapore and Sydney, is planning for data centers in Amsterdam, Frankfurt and a second London facility, and hopes to expand to Tokyo and Shanghai. Corcoran notes that he "can't think of one indicator that isn't pointing towards huge growth for data centres." He also explains that data centers are high-spec buildings and are being seen as an emerging asset class.

Qwest-Century Tel deal finds opposition. The Denver Business Journal reports that competitors, unions and faraway utilities are trying to stop or influence the $10.6 billion acquisition of Qwest by Century Tel. A Communications Workers of America union, representing 700,000 members wrote that the "proposed transaction is simply too soon and too big" in an objection to the FCC. If the acquisition is approved it would create the nation's third largest telecom. The acquisition offer includes a $10.6 billion stock swap giving Century Tel 50.5 percent ownership and would assume $12 billion in Qwest debt, giving the deal an overall value of $22 billion.