As UK Colo Prices Rise, Telehouse Expands

Telehouse International Corp of Europe Ltd is planning a significant increase in its capacity in the UK, adding 26% to its current space through a new build or a conversion, the company said. Telehouse is preparing to announce new capacity or more than 8,000 square meters.

Telehouse is one of a number of European colo providers that have been acquiring assets from other players and/or announcing extensions to their existing infrastructure or new builds this year in the UK, according to Computer Business Review. As in the US, prices have been firming up, and telehouse said its prices are rising to the point whre they are comparable with Telecity's going rate of $1,045 per rack per month. More price increases are likely, as TeleCityRedbus CEO Mike Tobin said he believes 800 pounds ($1,520) a month is achievable.

Other European providers question whether such rates are sustainable, noting that other markets like Germany are still in a depressed state, so much so that Telehouse last year effectively withdrew from that market. Telehouse, which is 85% owned by Japan's KDDI Corp, is not in the market for acquisitions because "there's a lot of infrastructure around that's available but out of date in terms of its power and cooling facilities, so acquisitions only make sense if you're buying a customer base," said Phil Lydford, European sales and marketing director.

Telehouse America operates the New York Internet Exchange (NYIIX) out of its Broadway Center at 25 Broadway in Manhattan, New York. The company's Los Angelese Center, at 626 Wilshire Blvd. ("626W") in downtown Los Angeles, houses LAIIX, whose dark fiber connection to the 1 Wilshire Boulevard carrier hotel offers direct access to all of the carriers there.