>>But the economics of building data centers has changed because of the credit crunch, according to Jim Simonelli, senior vice president of APC by Schneider Electric. “In colocation, the funding model has changed,” said Simonelli. “It used to be ‘build it and find customers.’ Now it’s ‘find a customer and then build.’”
“The colo folks have capex issues as well,” said Tad Davies, executive vice president of The Bick Group. “I think you have a really interesting dynamic. What we see is the strongest players getting stronger because they can build, and the weaker players working harder to manage their existing assets.” That effort to generate additional revenue from existing facilities will likely mean higher colocation prices in some markets, he said.
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