TeraGo Expands Vancouver Data Center Footprint with Acquisition of New Downtown Facility


TeraGo Expands Vancouver Data Center Footprint with Acquisition of New Downtown Facility

By Tara Seals

As more business turn to managed services and the cloud to meet their IT needs, the demand for data center space is increasing exponentially. This is particularly true in the Vancouver, B.C. area and broadband services and colocation provider TeraGo Inc. is expanding to keep apace of demand.

The company has announced the acquisition of a 7,000-square-foot data center in downtown Vancouver in an effort to expand its presence in Western Canada. The facility is the second operated by TeraGo in the region and will enable the service provider to offer colocation, disaster recovery and cloud solutions throughout the British Columbia Lower Mainland.

Research firm DCD Intelligence estimates a 13-percent increase in the amount invested in data center outsourcing and colocation in North America from 2013 to 2014, with spending reaching $8.8 billion. The company specifically examined the data center footprint for the US and Canada, with spending expected to increase by another 15 percent by the end of this year.

“We are witnessing an increase in the uptake of outsourced data center solutions across all industry verticals, this demand is fuelling further growth in the colocation sector in terms of build and this section of the market is expected to continue to show healthy growth through 2014," said Nicola Hayes, managing director of DCD. She added that growth in the sector is being driven by increasing IT capacity requirements along with reduced budgets and demand for access to new technologies.

TeraGo has been building out its operations to meet that demand, and the company acquired Data Centers Canada last year, including a 16,000-square-foot facility in Vaughan, ON. This past February, the company purchased its first data center in downtown Vancouver, and the company will operate both Vancouver facilities under the Data Centers Canada brand.

According to Stewart Lyons, CEO and president of TeraGo, the company plans to become a full-service IT provider with a wide range of complementary services available at its facilities, including cloud offerings. TeraGo services 46 major markets across Canada and is also a competitive local exchange carrier (CLEC).

Edited by Stefania Viscusi

Contributing Writer

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