Driven by a growing demand for cloud services from businesses and government agencies, Verizon (NYSE: VZ) has put the finishing touches on an expansion of its NAP for the Capital Region, the telco’s Culpepper, Va., data center.
As the large of four data centers on the Culpepper campus, the facility offers 60,000 feet of leasable capacity.It is a purpose-built Tier II federal data center that features various layers of redundancy for facility operations, networking, security, power and HVAC. Joining its Miami facility, the Culpepper facility is designed to meet or exceed government criteria for physical and environmental controls.
The NAP of the Capital Region opened in 2008. It spans nearly 60 acres and currently houses four data centers and an administration building and conference center, as well as security and shipping and receiving facilities. Upon being built to full capacity, the campus will accommodate 10 data centers with nearly 1 million square feet of capacity.
Verizon & the Data Center Industry
While the data center segment is a growing business for Verizon, competition has created a challenging revenue environment. During its third-quarter earnings call, Verizon noted that while it has made gains on the strategic side around security and data centers, it is seeing pricing pressure which is affecting its overall enterprise segment revenues. Third-quarter Global Enterprise revenues declined 4.9 percent to $3.21 billion. Fran Shammo, CFO and EVP of Verizon told investors that “even in data centers there’s an awful lot of competition happening with price compression.”