Zayo Group Acquires Data Center in Silicon Valley for 12.8 Million

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Zayo Group Holdings (NYSE: ZAYO), an international bandwidth infrastructure provider, has completed its $12.8 million acquisition of a data center in Santa Clara, the company’s first data center in Northern California. The Bay Area represents one of Zayo’s most extensive metro dark fiber footprints encompassing 1,500 route miles. 

The data center facility, located at 5101 Lafayette Street, includes 26,900 total square feet and three megawatts (MW) of critical power. The location is adjacent to the recently completed Levi’s Stadium and connects to multiple data centers in Silicon Valley via Zayo-owned fiber assets. The facility also includes high-efficiency power and cooling infrastructure, seismic reinforcement to ‘1.5’ and proximity to Zayo’s long haul dark fiber routes between San Francisco and Los Angeles.

The expansion would be driven by strong customer demand in Northern California leveraging interplay between data center and communications infrastructure. This facility complements zColo’s U.S. footprint, the colocation division of Zayo Group, which is experiencing demand from cloud, content, service providers and traditional enterprise firms.

The acquisition will contribute over $1 million in incremental annualized adjusted EBITDA.

“We have long targeted Northern California as an expansion opportunity for our zColo data center business,” said Chris Morley, COO of Zayo. “The quality and high-power density of this facility is perfectly matched to the requirements of our leading-edge, Bay Area customers.”