Equinix leaving Honolulu market

The company is selling its data and Internet operations in Honolulu to DR Fortress LLC

Equinix Inc., a provider of data centers and Internet services, announced yesterday it is selling its Honolulu operations.

The company did not disclose a price for the sale of the Equinix Honolulu Internet Business Exchange to DR Fortress LLC, a locally based operator of sites that offer managed colocation, the housing of Internet servers.

Included in the acquisition is an 11,800-square-foot data center near Honolulu International Airport, the only commercial Internet peering exchange in the state.

Equinix, which acquired the business from Pihana Pacific in 2002, said it was focusing on more strategic markets in New York, Chicago and Washington, D.C., where it will be opening new centers next year.

"The Honolulu IBX was acquired several years ago as a part of Equinix's acquisition of Pihana Pacific," said Peter Van Camp, CEO of Equinix. "Removing this asset from our portfolio will enable Equinix to continue its traditional focus on top tier markets where we have ambitious expansion plans for 2007 and beyond."

Following Equinix's merger with Pihana Pacific, the downtown Honolulu headquarters were eliminated, whittling staff from 58 to seven.

The seven employees running Equinix's operations in Honolulu will now take over the business, and are hoping to expand.

DR Fortress was formed earlier this year by former Equinix employees Jeff Brown, who will be CEO, Fred Rodi, president, Rosa White, chief financial officer and Vinh Do, chief technology officer.

Current Equinix customers of the facility, which include AIG, Kamehameha Schools and Title Guaranty, will be transferred to DR Fortress.

The company recently raised more than $11 million from local and international investors, and plans to expand its operations by adding power capacity and server-cabinet space in the first quarter of next year.

"The focus is still the same, neutral colocation and Internet data exchange," said Rodi. "We will focus on the needs of local companies and mainland companies that need a presence for networks and need to be up and running all the time."

White said the company plans to hire additional engineers toward the end of next year.