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That it contains offices is of secondary importance.

That is a huge assumption on your part.

Our cost for power in Manhattan is only negligibly different than in Texas.

The consumer cost may be similar, but any smart company building data centers will try to find deals that reduce their cost well below what consumers pay. Those deals tend to be easier to find in rural areas.

The quote about rural areas with cheap power has nothing to do with the importance of being at 111 8th Ave for peering.

Google's only interest to date in this building is that it houses a growing number of employees, and is currently at 2000. Google is not in the high frequency trading business, and so is unlikely to have too much interest in the advantages of the location for peering. There is therefore no reason to believe that Google cares about anything other than the advantages of being their own landlord and guaranteeing access to enough co-located office space for their needs.

(Note, I am currently employed at Google. However I have no inside knowledge about this deal.)



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