Data center neutrality is now a top priority for network operators, with neutral Internet Exchanges (IXs) now accounting for 70% of the largest IXs in the US. This is one of the central findings from a new study by DE-CIX, the world’s leading Internet Exchange (IX) operator, on the back of the 10th anniversary of its flagship IX in the US, DE-CIX New York.
The study reveals a steady transformation over the past decade in the way networks choose to interconnect in the US. Neutral IX models, operated by a neutral third party rather than by a data center operator or a carrier, have now become the preference for a majority of network operators. These neutral IXs have boomed in the past ten years, growing six-fold and fundamentally changing the way the Internet is routed within and across North American cities.
Nationally, the findings show that New York stands out as the leading interconnection hub in the country, sporting close to 40% more aggregated network connections than Seattle, in second place, or Los Angeles, in third. While all cities investigated in the study show strong growth in networks connecting redundantly to multiple IXs, New York has up to 50% more redundantly connected networks than other cities. New York is also the only city in the US to be home to four large-scale IXs, two of which are neutral IXs distributed across multiple data centers.
The largest IX in New York, DE-CIX New York, is neutral and distributed across more than 30 data centers over the entire metropolitan region, therefore offering networks greater opportunities for redundancy and resilience and preventing vendor lock-in. The IX, which celebrates its 10-year anniversary today, demonstrated the demand for the neutral interconnection model as soon as it was established in 2014, gaining 3rd position in the city in 2015, 2nd in 2016, and becoming the largest IX in the city in 2017, a position it has maintained and strengthened since then. DE-CIX New York is the youngest IX to become one of the top 5 largest IXs in the US. The IX is built on award-winning interconnection technology and was the first IX to be certified by Open-IX, a certification body for industry-leading engineering and operating standards and best practices for Internet Exchange providers, also celebrating its 10th anniversary this year.
“Our latest study shows clearly the strength of the distributed data center and carrier neutral Internet Exchange model and its huge positive impact on the New York market and beyond – for the entire US,” said Ivo Ivanov, CEO of DE-CIX. “The distributed and neutral IX model offers networks flexibility, redundancy, and high-performance interconnection, while it offers data center operators access to vibrant and diverse interconnection ecosystems, with benefits that they can pass on to their customers. With our entry into the New York market ten years ago, the importance of a complementary offering on the New York market to attract more networks and enable mutual growth became abundantly clear. The facts prove that it’s all about community, consisting of network operators, data centers, and IXs. The unique community in this great city will continue to grow and develop together for the digital future,” Ivanov adds.
“It has been my honor to be able to work the data centers of the NY metro area where we have often been able to serve as the first major exchange or where we have added the ability to readily connect to a second and complementary exchange,” said Ed d’Agostino, Vice President of DE-CIX North America. “It’s great to be a part of this mutual win-win scenario.”
With 40% more aggregated network connections, New York’s strong interconnection ecosystem can be seen in contrast to that of Seattle, which sports one large neutral IX but no significant complementary offering in the market, and Los Angeles, where the data center operated model currently remains dominant. The DE-CIX study, “The shifting interconnection landscape in the US”, which highlights the adoption of the neutral interconnection model in the US and its impact on the interconnection and data center markets at national and city level, will be published in full later this year.
DE-CIX currently operates five Internet and Cloud Exchanges in the US (Chicago, Dallas, New York, Phoenix, and Richmond), and a dedicated Cloud Exchange in Seattle. These exchanges are interconnected with one another for remote access, and together represent the largest interconnection ecosystem in North America. In 2023 the IX operator extended its reach southwards with new locations in Mexico City and Queretaro.
To register to receive a copy of the study “The shifting interconnection landscape in the US” when it is published, click here.
More information about DE-CIX New York can be found here.
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