CoreSite Strengthens Native Cloud Ecosystem at Chicago Data Center Campus with AWS Direct Connect

Rhea-AI Summary

CoreSite, part of American Tower (NYSE: AMT), has announced that its Chicago data center now offers native access to AWS Direct Connect. This service allows for private, low-latency connections to Amazon Web Services (AWS), supporting Dedicated connections from 10 Gbps to 100 Gbps and Hosted connections from 50 Mbps to 25 Gbps. The AWS Direct Connect availability in Chicago complements CoreSite's offerings in Los Angeles, Silicon Valley, Denver, New York, and Northern Virginia. Customers benefit from reduced data transfer costs by up to 60%, enhanced performance, lower latency, increased resilience, and improved security. AWS Direct Connect is ideal for AI, ML, data storage, and production workloads. CoreSite also simplifies management through its Open Cloud Exchange platform, enabling easier network connection management.

Positive

• CoreSite's Chicago data center now offers AWS Direct Connect, enhancing network capabilities.
• AWS Direct Connect supports high-speed connections: 10 Gbps and 100 Gbps Dedicated, and 50 Mbps to 25 Gbps Hosted.
• Customers can save up to 60% on data transfer costs.
• Enhanced network performance, lower latency, and improved resilience and security.
• Ideal for AI, ML, data storage, and production workloads.
• AWS Direct Connect available in six CoreSite markets, expanding to ten through Open Cloud Exchange.
• Redundant connectivity options ensure high availability and maximum resiliency.

Negative

• Customer cost savings may vary and aren't guaranteed for all users.
• Initial setup and transition to AWS Direct Connect could incur additional costs.

Insights

Tech Expert

CoreSite's integration of AWS Direct Connect at its Chicago data center campus is significant for businesses leveraging cloud computing and data-intensive applications. This strategic move enhances network performance by providing private, low-latency connections, which are important for AI and ML workloads.

The ability to bypass the public internet reduces latency and enhances security, making it easier for companies to comply with regulatory requirements. The dedicated capacity of 10G and 100G connections offers substantial bandwidth, essential for high-speed data transfer and operational efficiency.

From a technical standpoint, the resilience and redundancy of private connections ensure that mission-critical operations remain uninterrupted. This delivers a competitive edge to businesses that depend heavily on real-time data processing and cloud-based services.

Financial Analyst

The expansion of AWS Direct Connect to CoreSite's Chicago data center is poised to deliver financial benefits through cost savings and enhanced performance for clients. By reducing data transfer costs by up to 60%, this move makes CoreSite services more attractive to potential and existing customers, potentially driving revenue growth.

Additionally, the improved network performance can elevate customer satisfaction and retention, indirectly contributing to CoreSite's financial stability and profitability. The strategic alignment with AWS and the offering of advanced connectivity options strengthen CoreSite's position in the competitive data center market.

This relationship with AWS also implies a robust partnership, which can lead to further business opportunities and collaborations, ultimately benefiting CoreSite's financial health in the long term.

Market Research Analyst

From a market perspective, CoreSite's move to offer AWS Direct Connect at its Chicago data center indicates a strategic step to capture more of the hybrid IT market. The increase in demand for secure, low-latency cloud connections driven by AI, ML and other data-intensive applications is a trend that CoreSite is capitalizing on.

This development likely enhances CoreSite's value proposition, making it more competitive against other data center providers who do not offer such integrated, high-performance connectivity solutions. The ability to provide substantial cost savings and improved network performance can be a strong differentiator in a crowded market.

Furthermore, by integrating with the Open Cloud Exchange, CoreSite simplifies the management of these connections, appealing to a broader range of clients looking for ease of use and operational efficiency.

-- Empowering Artificial Intelligence, Machine Learning and Data-Intense Applications --

-- Extending Access to AWS Direct Connect, Enhancing Network Security and Compliance --

-- Enabling 10G and 100G Dedicated and 25G Hosted Connections --

DENVER--(BUSINESS WIRE)-- CoreSite, a leading hybrid IT solutions provider and subsidiary of American Tower Corporation (NYSE: AMT) (“American Tower”), today announced the company now offers native access to AWS Direct Connect, a networking service that provides an alternative to using the internet to connect to Amazon Web Services (AWS), in its Chicago data center campus. This enables customers to establish private, low-latency connectivity between its infrastructure and AWS supporting Dedicated connections from 10 Gbps and 100 Gbps and Hosted connections from 50 Mbps to 25 Gbps. AWS Direct Connect is natively available in six CoreSite markets including Los Angeles, Silicon Valley, Denver, New York, Northern Virginia and now Chicago. This new AWS Direct Connect deployment enables CoreSite customers to more easily build secure, high-performing and resilient infrastructure aligned with the AWS Well-Architected Framework.

When customers within one of CoreSite’s colocation facilities directly connect to AWS and bypass the public internet, they benefit from reduced data transfer costs by up to 60% as well as enhanced performance, lower latency, increased resilience and improved security.¹ AWS Direct Connect enables businesses to efficiently extend their on-premises infrastructure into the cloud – ranging from data-intense applications such as artificial intelligence (AI) and machine learning (ML) to data storage and running production workloads.

AWS Direct Connect offers higher network throughput, allowing customers to transfer data between their colocation environments and AWS with greater speed. In addition to reducing the distance and network hops between customers' data and AWS Regions, AWS Direct Connect provides private network connections and dedicated capacity for secure and compliant access to AWS resources. With AWS Direct Connect, customers also benefit from redundant connectivity options, ensuring high availability and maximum resiliency for mission-critical workloads.

“Providing a robust, secure and native cloud ecosystem is critical to our data center customers’ success and long-term mission-critical readiness,” said Juan Font, President and CEO of CoreSite and SVP of American Tower. “Working together with AWS, CoreSite is delivering market diverse access to AWS Direct Connect in our Chicago data center campus, resulting in substantial cost savings for our customers along with delivering the optimal performance and low latency needed for applications such as AI/ML.”

CoreSite, an AWS Partner Network (APN) member, also offers simplified management with AWS through the Open Cloud Exchange^® (OCX), the software-defined network interconnection platform. The OCX integrates seamlessly with AWS, allowing customers to easily manage their network connections using the CoreSite Service Delivery Platform. Customers can connect to AWS Direct Connect via the OCX in all 10 CoreSite markets.

¹Costs savings are based on CoreSite cost comparisons using publicly available and private information and/or CoreSite customer reported costs savings and may not be indicative of the costs savings that may be experienced by every customer that switches to the applicable CoreSite service.

Related Resources

• Watch What is Cloud Direct Connection and How Can It Support Your Hybrid IT Strategy?
• Learn more about CoreSite and Amazon Web Services

About CoreSite

CoreSite, an American Tower company (NYSE: AMT), provides hybrid IT solutions that empower enterprises, cloud, network, and IT service providers to monetize and future-proof their digital business. Our highly interconnected data center campuses offer a native digital supply chain featuring direct cloud onramps to enable our customers to build customized hybrid IT infrastructure and accelerate digital transformation. For more than 20 years, CoreSite’s team of technical experts has partnered with customers to optimize operations, elevate customer experience, dynamically scale, and leverage data to gain competitive edge. For more information, visit CoreSite.com and follow us on LinkedIn and X.

Forward-Looking Statements

This press release contains statements about future events and expectations, or “forward-looking statements,” all of which are inherently uncertain. We have based those forward-looking statements on management’s current expectations and assumptions and not on historical facts. These forward-looking statements involve a number of risks and uncertainties. For important factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the information set forth under the caption “Risk Factors” in Item 1A of American Tower’s most recent annual report on Form 10-K, and other risks described in documents American Tower subsequently files from time to time with the Securities and Exchange Commission. Neither we nor American Tower undertake any obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240529209471/en/

CoreSite

Megan Ruszkowski

Vice President of Marketing and Sales Development

720-446-2014

Megan.Ruszkowski@CoreSite.com

Source: CoreSite

FAQ

What is AWS Direct Connect's benefit for CoreSite customers?

AWS Direct Connect offers private, low-latency connections to AWS, reducing data transfer costs by up to 60% and enhancing performance, resilience, and security.

What connection speeds does CoreSite's Chicago data center support?

The Chicago data center supports 10 Gbps and 100 Gbps Dedicated connections, and Hosted connections from 50 Mbps to 25 Gbps.

How does AWS Direct Connect support high-performance applications?

AWS Direct Connect provides higher network throughput and lower latency, ideal for AI, ML, data storage, and production workloads.

Which CoreSite markets offer AWS Direct Connect?

AWS Direct Connect is available in Los Angeles, Silicon Valley, Denver, New York, Northern Virginia, and now Chicago.

What are the cost savings associated with AWS Direct Connect?

Customers can save up to 60% on data transfer costs when using AWS Direct Connect compared to usual internet connections.