Allied Properties sale of their data centre portfolio to KDDI includes 151 Front Street W., the site of TorIX which is the main Internet Exchange Point for the country. While that’s not necessarily an issue, I kinda figured it was at least a little bit notable but I’ve not seen it mentioned aside from an investment context.
Unfortunately, it seems like it’s less consequential than it should be because Bell Canada apparently still refuses to peer at TorIX and only connects to other ISPs through the US which means that eg. if I’m on Rogers in Toronto and you’re on Bell, any communications between our computers have to flow through American controlled systems even though we’re in the same city because that’s how Bell chooses to have things set up.
Whereas, for pretty much everything else in Toronto, it’d move between networks via TorIX. Which is now in a building owned by a Japanese company instead of a Canadian REIT.
First I’m hearing about it. It all reads stinky and I don’t like it. But a great educational rabbit hole to explore at work tomorrow, thank you for helping me be aware!
As for the land purchase,
KDDI is a Japanese telecommunications provider and Fortune Global 500 company that owns and operates data-centres in Asia, Europe and the United States through its subsidiary, Telehouse.
ooo global fortune isn’t enough, they gotta get telehouse EVERYWHERE I see it!!!
Buutt as an investment opportunity, what’s the play here? I couldn’t help but notice that little bit, “Allied will use approximately $1 billion of the proceeds to retire debt and the balance to fund its…”, related hmm? I don’t see why not, but will it even go through?
The sale finalizes on 3rd quarter which also seems really fast, but there’s still time for shenanigans.