DataPipe buys San Jose Data Center

Managed hosting provider DataPipe has bought a data center in San Jose, Calif. from AboveNet, the two companies said today. The deal is similar in concept to AboveNet's recent deal to sell three data centers to Digital Realty Trust, with AboveNet selling the facility while continuing to provider services to the customers. DataPipe and AboveNet said they have developed "a comprehensive transition plan" to ensure that customers experience no interruption in service.

"Our customers will have two experienced companies working together to meet their needs," said Bill LaPerch, President and CEO of AboveNet. "Customers will continue to work with AboveNet to meet their networking requirements for private optical networks and IP services utilizing AboveNet's vast fiber optic network and extensive solutions experience."

"From a strategic perspective, this transaction is consistent with the continuing evolution of AboveNet as a company with a laser focus on fiber-based connectivity solutions," LaPerch added. "This includes our new data center to data center service, dcXchange, that delivers high performance connections between prime data center locations in both these markets."

In addition to providing standard colocation services, DataPipe will offer its comprehensive suite of managed services, including security services, application administration and disaster recovery, the companies said. DataPipe recently purchased a 36,000 square foot facility in central New Jersey as the first step of a broader expansion of its global data center operations.

"DataPipe has extensive experience managing mission critical assets. We look forward to working with each of the customers to maintain a high level of service during the transition process," said Robb Allen, CEO of DataPipe.

DataPipe provides managed services to enterprise companies, with many customers in the financial services and pharmaceutical industries.