Zayo has increased revenue and EBITDA by 60 percent since 2014 acquisition; strong demand continues
BOULDER, Colo. – February 3, 2016 – Zayo Group Holdings, Inc. (NYSE: ZAYO), today announced a significant expansion of its zColo Atlanta data center at 1100 White Street SW to meet the colocation needs of a major content provider. The expansion, which is expected to be completed in the second quarter, will enable colocation sales to an additional 11,000 square feet of space, with extensive interconnections to other data center facilities in the Atlanta area.
Zayo acquired the Atlanta data center in July 2014 and has experienced continued growth momentum in both cloud and colocation services to a wide range of industries, including healthcare, cloud, and technology. Both revenue and EBITDA in the facility have increased by 60 percent or more since acquisition. Inclusive of the expansion, Zayo expects to recognize a 30 percent or higher unlevered return on its investment.
The data center is an anchor facility for Zayo’s 2,300 route miles of dense fiber in place or under construction in the Atlanta area. The data center is cloud enabled and offers Zayo’s full suite of hybrid cloud infrastructure solutions. It also provides high-bandwidth interconnections to 56 Marietta and other major carrier hotels.
“Our data center is an ideal solution for this customer, which requires a fully redundant infrastructure combined with high bandwidth connectivity to key exchange points and data centers in the Atlanta market,” said Greg Friedman, executive vice president of colocation and cloud infrastructure at Zayo. “The customer win is another illustration of strong demand in the Atlanta market, and the unique ability for zColo to differentiate its data center solutions by leveraging the broader Zayo network capabilities.”
For more information on Zayo’s data centers, please visit zayo.com/services/data-center-colocation.
About Zayo Group
Zayo Group Holdings, Inc. (NYSE: ZAYO) provides communications infrastructure services, including fiber and bandwidth connectivity, colocation and cloud services to the world’s leading businesses. Customers include wireless and wireline carriers, media and content companies and finance, healthcare and other large enterprises. Zayo’s 110,000-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centers. In addition to high-capacity dark fiber, wavelength, Ethernet and other connectivity solutions, Zayo offers colocation and cloud services in its carrier-neutral data centers. Zayo provides clients with flexible, customized solutions and self-service through Tranzact, an innovative online platform for managing and purchasing bandwidth and services. For more information, visit zayo.com.
Forward Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words such as “believe,” “expect,” “plan,” “continue,” “will,” “should,” and similar expressions are intended to identify our forward-looking statements. No assurance can be given that future results expressed or implied by the forward-looking statements will be achieved and actual results may differ materially from those contemplated by the forward-looking statements. These forward-looking statements involve risks and uncertainties, many of which are beyond our control. For additional information on these and other factors that could affect our forward-looking statements, see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our 10-K dated September 18, 2015. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.