Verizon Inks Renewal at NYC Data Center

Verizon signed a renewal for 172,000 square feet at 60 Hudson Street in Tribeca, the New York Business Journal reported. The lease was the largest one signed in Downtown Manhattan in the third quarter, according to a Newmark report.

Other details of the lease, including asking rent and length, were not disclosed. The property, also known as Hudson Interxchange, is owned by London-based Cordiant Digital Infrastructure.

Verizon occupies approximately 20 percent of Hudson Interxchange, a 24-story building spanning 929,000 square feet. The building is almost a century old, once serving as the headquarters for Western Union.

More recently, the building has housed hundreds of operators seeking to seize on the rare and essential digital infrastructure in place. Tenants at the single-footprint data center include Digital Realty and DataBank, according to the Commercial Observer.

Cordiant is also in the process of expanding its capabilities at 60 Hudson Street. In August, the landlord announced the start of construction on two data halls at the building; the project is expected to be completed within the year.

The rise of artificial intelligence is boosting data centers across the country. As of this summer, there are more than 2,800 data centers in the country, trouncing other nations such as the United Kingdom, which has roughly 400 facilities.

Tech companies rely on data centers to power their computing needs. A veritable who’s who of companies are pouring billions into the sector, including Amazon and Microsoft.

Data centers are rare in New York City, due to the space requirements in a densely-packed city as well as residents often not wanting to live near them.

— Holden Walter-Warner