Telecity looks to 'cloud' growth with $2.2 billion Interxion deal

By Simon Jessop and Paul Sandle LONDON (Reuters) - British data center provider Telecity Group Plc has agreed a non-binding $2.2 billion all-share deal to buy New York-listed Interxion Holding NV, looking to tap growing demand for "cloud" technology. Shares in Telecity, which like its new partner operates some of the huge computer centers which process traffic on the Internet, rose more than 16 percent to their highest in some 19 months. Demand for premium data centers such as those run by Telecity is being driven by cloud technology, whereby the data and processing for devices like smartphones is carried out on millions of remote servers. "Demand for data center services is evolving rapidly as enterprise data and digital applications migrate to the cloud," Telecity said, adding the combined business would provide customers with greater product choice and better global access.



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