Colocation and Internet exchange provider Switch and Data - which last week shook up the data center industry with the announcement of its acquisition by global player Equinix - has begun construction of its second data center in Atlanta, Ga.

The facility will yield 1,450 cabinet equivalents in its totality, with first phase scheduled to open in the third quarter of 2010, company CEO Keith Olsen said in a conference call Tuesday as he reported Switch and Data's third-quarter financial results.

The company was able to pay for the $41-million build-out (projected cost for both phases) after raising $100 million in debt financing in September.

Switch and Data has also released the second phase of its North Bergen, N.J., facility, whose first phase opened about one year ago.

"As of last week 95 percent of our first phase (in North Bergen) is sold and 68 percent of that capacity is billing," Olsen said. "We have just released Phase 2 at the end of the quarter. This phase provides another 1,000 cabinet-equivalents of capacity in the New York metro market for us and contributed to our capacity utilization number for the third quarter."

Switch and Data's total capacity at the end of the quarter was 58 percent utilized.

Olsen also announced that Unity - the six-company consortium that is developing a new Trans-Pacific fiber optic cable - has decided to land the cable in a Switch and Data facility in Palo Alto, Calif., "to facilitate interconnections with numerous other networks (at) this site.

"The Unity deal is one that has near term and far reaching aspects for Switch and Data's growth."

Members of the Unity consortium are Bharti Airtel, Global Transit, Google, KDDI, Pacnet and SingTel. The cable will connect US and Japan and, according to Olsen, the consortium predicts that about 20 percent of all Trans-Pacific IP traffic will travel through it.

Another significant network deal Switch and Data made during the third quarter, ending Sept. 30, was a 10-year contract with a global network service provider. The agreement involves 24 of the company's sites and will constitute more than $17 million in new revenue, Olsen said. He did not name the provider but said it was one of the company's existing clients.

Switch and Data reported revenues of about $53.5 million in the third quarter - a 21.4-percent increase from the same period last year. Its net income during the quarter was about $2.59 million, or $0.07 in earnings per share.

The amount of built cabinet-equivalents increased by 10 percent year-over-year and the volume of traffic through its exchanges grew 71 percent year-over-year.

About six months ago, Switch and Data started its financial services practice, which has since gained a lot of traction, Olsen said. The company integrates revenue from the practice within its "other" category, which now represents 11 percent of its total revenue.