Modern data centers deliver more than power and space. They connect organizations to networks, cloud platforms, Internet Exchanges and service providers.
As enterprises rely on a broader mix of infrastructure environments, interconnection has become a more important factor in data center planning. The value of a facility is no longer determined solely by the physical infrastructure available within it. It is also influenced by the connectivity ecosystem surrounding that infrastructure and the options customers have for reaching external networks and services.
For organizations evaluating data center environments, this makes interconnection an important business consideration. A strong ecosystem can provide greater choice while supporting more flexible infrastructure strategies as requirements evolve.
From Feature to Business Driver
Interconnection was once viewed primarily as a technical feature within the data center environment. Today, it plays a broader role in infrastructure planning and site selection.
Two facilities with comparable power and cooling capabilities may provide very different levels of value if one provides significantly greater access to carriers and cloud platforms than the other. A facility with access to a dense network of carriers and cloud providers gives customers more options for how and where they connect infrastructure.
Access to multiple networks and cloud platforms allows organizations to evaluate connectivity based on their specific requirements. Internet Exchange access can provide another option by creating opportunities for participating networks to exchange traffic directly.
Industry discussion around AI and other distributed workloads has placed greater emphasis on efficient and direct connectivity between infrastructure environments. InterGlobix Magazine’s article “Why Interconnection Matters In The AI Era” has highlighted the growing importance of interconnection as organizations consider how data moves between increasingly complex digital environments.
Why Ecosystems Compound in Value
One of the defining characteristics of a strong interconnection ecosystem is that its value increases as participation grows.
Each additional carrier or cloud provider creates another potential connection for customers already operating within the facility. A larger customer community can also make the environment more attractive to additional network participants.
Market Research Future points to highly connected carrier hotels such as One Wilshire in Los Angeles, where nearly 300 network providers can be present within a single meet-me environment. The firm identifies this type of concentration as an example of how network effects can create a self-reinforcing cycle of demand.
That compounding value helps distinguish a true interconnection ecosystem from a facility that simply provides space for equipment. Physical infrastructure establishes the foundation, while the surrounding network community expands what customers can connect to from that infrastructure.
The Business Case for Interconnection
The business value of interconnection is not defined simply by the number of connections available within a facility. The more important consideration is what those connectivity options allow customers to do.
Access to multiple providers gives organizations greater choice when selecting network services and can reduce dependence on a single connectivity option. Direct connectivity can also create more efficient paths between infrastructure environments. Connections to networks and cloud platforms can provide dedicated routes for moving data between systems.
Connectivity options also support more resilient infrastructure design. Access to diverse providers and network routes can help organizations build redundancy into their environments.
For these reasons, interconnection should be considered part of the overall value of a data center environment rather than an additional service layered onto colocation. The connectivity surrounding the infrastructure can directly influence how effectively that infrastructure supports long-term business requirements.
What Defines a Strong Interconnection Ecosystem
A strong interconnection ecosystem begins with a diverse carrier presence and access to multiple forms of connectivity. Direct cloud on-ramps can provide dedicated access to cloud environments while Internet Exchanges can provide direct connections between participating networks.
Openness is equally important. Carrier-neutral environments allow customers to select providers based on their requirements without being tied to a single network or connectivity model. This also creates opportunities for new participants to enter the ecosystem over time.
Network diversity extends beyond the number of providers present. Organizations should also consider the routes available into and out of a facility, particularly when resilience is an important part of infrastructure planning. The ability to add or change connections as requirements evolve is another important consideration.
A strong ecosystem gives customers meaningful choice without limiting them to a single provider or predefined connectivity approach. That flexibility allows the network environment to adapt alongside broader infrastructure requirements.
Putting Interconnection into Practice
1547’s portfolio provides examples of how these interconnection principles can take shape across different markets.
At Chase Tower in McAllen, Texas, 1547 owns and operates MCT-IX, an Internet Exchange designed around open and carrier-neutral interconnection. MCT-IX includes more than 46 networks across two meet-me rooms and supports speeds of up to 100G.
McAllen’s location between the United States and Latin America adds another dimension to the ecosystem. Its geographic position creates a connection point for traffic moving between the two regions.
1547’s Portland, Oregon facility, PTOR1, provides another example of how interconnection can support customer choice. Located within the Pittock Block, the facility offers access to a significant network ecosystem and includes AWS Direct Connect.
Direct cloud connectivity allows customers to connect colocated infrastructure with AWS through dedicated network services.
These examples show that a strong interconnection ecosystem depends on more than provider presence alone. Its value comes from the broader ecosystem and the ability of customers to select connectivity options that align with their infrastructure requirements.
Looking Ahead
As enterprises rely more heavily on hybrid cloud environments and AI workloads, the importance of interconnection will continue to increase. Cross-border data flows are also placing greater emphasis on how efficiently infrastructure can connect across locations.
Organizations evaluating data center environments will need to consider not only what infrastructure is available within a facility, but also what that infrastructure can connect to. The strength of the surrounding ecosystem can influence how effectively organizations expand or adapt their environments over time.
Power and space will remain fundamental considerations in data center planning. However, the long-term value of a facility is increasingly influenced by the ecosystem surrounding the infrastructure.
For 1547, interconnection is a core part of that environment. Through carrier-neutral facilities and established interconnection ecosystems, 1547 gives customers access to a range of connectivity options to support evolving infrastructure requirements.