CyrusOne building a new facility in Council Bluffs, near Google's data centers

CyrusOne is building a new data center in Council Bluffs, Iowa. Located just across the river from Omaha the facility will be near two large Google facilities. CyrusOne choose the location because the company believes more companies will want to store their large data sets near cloud compute centers. Interesting concept. Let's see how this plays out and if other data center providers.

On the Q3 2019 earnings call CyrusOne's CEO Gary Wojtaszek said:

So what we're looking at doing there is putting a data center in close proximity to some of the hyper-scalers bypassing an interconnection hub and allowing those enterprise companies to do a hybrid deployment where they would put a lot of their managed equipment in our facilities, but then connect up to hyper-scale data centers in close proximity. This is something that I think is going to continue to expand over time as the datasets get larger and larger.

We've been working on a number of different initiatives in Houston in particular for our oil and gas customers because what we're seeing is that the data sets that they're dealing with are just so massive that it's not really efficient for our customers there to put that data into a cloud, because the ingress and egress fees going moving that data from back and forth to the cloud is really prohibitively expensive.

So we're, we're expecting this type of topology to -- to happen more and more as a data sets get larger over time.

CyrusOne Press Release:

CyrusOne Breaks Ground on New Data Center Campus in Council Bluffs, Iowa

Situated on the Strategic 41st Parallel, New Data Center Provides Access to High Bandwidth for Large Cloud Companies

COUNCIL BLUFFS, Iowa--(BUSINESS WIRE)--Dec. 10, 2019-- CyrusOne a premier global data center REIT, has celebrated breaking ground for its data center site in Council Bluffs, Iowa. Located at 4700 Gifford Rd, the first phase of the facility will be ready for occupation in the Fall of 2020. Upon completion, the site will have 24 MW of total power available across roughly 60,000 square feet of data hall space for cloud customers.

The new data center campus is strategically located on the 41st parallel, with the majority of data traffic in the United States passing through Council Bluffs via a large collection of fiber optic cables from the nation’s telecommunication companies. Upon completion, the new data center will provide CyrusOne customers with unparalleled access to high bandwidth with close proximity to some of the world’s largest cloud companies empowering enterprise customers in their hybrid cloud journey with low latency cloud connectivity.

“CyrusOne has a proven track record of building data centers in strategic locations to meet the needs of our customers. In many ways, Council Bluffs, with its location on the 41st parallel, is the epicenter of this new digital era. The world’s leading cloud companies continue to invest billions of dollars along this parallel across multiple states and planting a flag in Council Bluffs will allow our customers to capitalize on this unique part of the United States fiber network,” said Gary Wojtaszek, CEO of CyrusOne. “We are excited to partner with Mayor Matt Walsh and the city of Council Bluffs as we help bring local jobs and investment to Iowa.”

“CyrusOne is a respected leader within the data center industry,” said Mayor Matt Walsh of Council Bluffs. “Their company’s success and continued growth are directly attributable to consistently providing their customers with robust technology solutions that answer businesses' unique need for information while overcoming limiting data capacity constraints. We are ecstatic that CyrusOne has chosen Council Bluffs as their most recent location for business expansion.”