TAMPA, Fla., November 6, 2007 - Switch and Data (NASDAQ: SDXC), a leading provider of Internet exchange and colocation services, today announced it is adding capacity in the New York Metro area to satisfy strong customer demand. The New York market is one of Switch and Data’s largest and fastest growing markets. Switch and Data will interconnect this new site with access to more than 300 networks in its existing New York sites, making this one of the most densely interconnected facilities in North America.
Following the build-out to meet Switch and Data’s standards, the company expects to be open for customers in the 3rd Quarter 2008. The site will be built out in phases, in pace with customer demand. This site is expected to yield 3,000 cabinets when built-out and generate in excess of $95 million in annual revenues.
“Demand for rich media, is driving exponential IP packet growth,” commented Keith Olsen, CEO of Switch and Data. “This growth requires scale across the entire supply chain, from content origination through content delivery,” explains Mr. Olsen. “Our existing and new customers will require more power, cooling and interconnection infrastructure to support their business growth.”
Switch and Data’s capital expenditures are estimated to be $75 to $80 million in 2008 and a total investment of approximately $105 to $115 million to build-out the site. The company expects to use its cash on-hand and strong balance sheet to finance growth. This expansion is in addition to the previously announced investments in Dallas, Sunnyvale and Toronto
Switch and Data’s New York City sites are interconnected to one the world’s densest concentration of networks. Customers in Switch and Data’s New Jersey site will be able to interconnect with customers in Switch and Data’s other New York sites via a scalable, diverse and redundant fiber ring. The new site will have high density AC and DC power to support customer deployment of high-capacity hardware to scale their growth in IP-based applications ranging from rich audio and video content to web based mission critical business applications.
About Switch and Data
Switch and Data is a leading provider of Internet exchange and colocation services. Based in Tampa, Florida, Switch and Data operates one of the largest footprints of neutral Internet exchange and colocation facilities in North America serving more than 870 customers. Switch and Data's PAIX is recognized worldwide as the premier name in peering and Internet exchange services and is home to one of the largest commercial exchange points in North America.


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