Data center colocation and interconnection services provider Telx officially opened a new data center in Santa Clara, California (a prime Silicon Valley data center location). The provider has leased space from Vantage to expand its footprint in the region.

Telx is likely one of the companies driving relief of downward pressure on wholesale data center lease rates in the Silicon Valley that have been reported earlier this year and late last year. The market was flooded with new wholesale space in 2011, which, in combination with lower rates reportedly offered by some players, created that pressure.

Eric Shepcaro, Telx CEO, said Silicon Valley was one of the most dynamics business environments in the world, and Telx would meet growing infrastructure needs of customers there.

“Our clients need flexibility and access options to deliver content that meets the ever changing demands of the consumer,” he said.

The 32,000sq ft data center provides up to 400 watts per 1sq ft, Telx said. As it has recently done with all of its data centers, the company has named the latest one “Cloud Connection Center”.

Abbreviating the brand as “C3”, the provider has 17 data centers in nine US markets. Beyond just providing space, power and connectivity, C3 facilities are “ecosystems” of interconnected Internet exchanges, carrier networks and enterprise backbones with a multitude of interconnection options.

Wholesale data center space providers in the region have recently observed downward pressure on pricing. In November 2011, DuPont Fabros CEO Hossein Fateh said on a conference call that some players in the Silicon Valley had done deals “that we wouldn’t want to do.” In other words, they had leased space out at rates that were lower than what DuPont considered sufficiently profitable.

In April of this year, 451 Research analyst Kelly Morgan, said DuPont may not have been the only company in the region to have had a hard time leasing at rates they would have liked to have leased for the same reason.

Still, market fundamentals in the Silicon Valley remained strong, she said, forecasting that the downward pressure on pricing would not last.