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On August 6, 2014, Alpheus Communications announced that it had acquired StratITsphere’s retail-colocation business unit and leased more than 12,000 square feet inside StratITsphere’s data center at 1510 Primewest Parkway in Katy, Texas. StratITsphere retained the approximately 93,000-square-foot facility and its wholesale-colocation business, so this was not a purchase of the company or the entire data center.
The deal in brief
| Item | What the available reporting says |
|---|---|
| Announcement | August 6, 2014 |
| Buyer | Alpheus Communications |
| Acquired business | StratITsphere’s retail-colocation business unit |
| Site | 1510 Primewest Parkway, Katy, Texas, serving the Houston Energy Corridor |
| Capacity added | More than 12,000 square feet of data-center space |
| Facility retained by StratITsphere | Approximately 93,000 square feet |
| StratITsphere’s target after the deal | Wholesale customers requiring more than 5,000 square feet |
| Purchase price | Not disclosed |
The primary announcement is available at Telecom Ramblings. Data Center Knowledge reported the transaction on August 7, 2014.
What Alpheus bought—and what it did not
The evidence supports a business-unit acquisition paired with a long-term lease. Alpheus obtained the retail-colocation operation and access to its leased footprint; the sources do not establish that it bought the building, the land, or StratITsphere itself.
The announcements do not identify a purchase price, transferred equipment, employees, liabilities, individual customer contracts, or the precise lease term. They also do not say whether every retail customer moved to Alpheus, was assigned, or signed new agreements.
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Why Alpheus wanted the Katy capacity
Alpheus said its two existing Houston data centers were full and that additional room was needed to meet colocation demand. The Katy space gave it immediate enterprise capacity without waiting for a new-build project.
The commercial proposition was broader than racks alone. Alpheus planned to combine colocation with its Texas metro-fiber network, Ethernet, dedicated Internet access, managed IP/MPLS, voice, and related services. Its network footprint was described as reaching Austin, Corpus Christi, Dallas–Fort Worth, Houston, and San Antonio. Contemporary coverage characterized the move as an effort to broaden Alpheus’s enterprise customer base in the Energy Corridor; see Fierce Network’s report.
That combination mattered for customers deploying cloud infrastructure, mission-critical applications, multi-site connectivity, and disaster-recovery environments: one provider could supply the facility space and the communications links connecting it to other offices and sites.
Why StratITsphere kept the larger operation
StratITsphere described the arrangement as a strategic specialization. It continued operating the broader facility and focused on wholesale deployments of more than 5,000 square feet. Its stated target sectors included oil and gas, pipelines, refining, power, utilities, and energy and commodities trading.
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Structurally, the parties divided the market rather than ending StratITsphere’s colocation business:
- Alpheus: Retail colocation and enterprise-oriented deployments, supported by its network services.
- StratITsphere: Larger wholesale customers and continued operation of the facility.
Why a lease-and-business-unit structure matters
A business-unit sale with a long-term space lease can give a telecom provider immediate capacity while leaving real-estate and building operations with the existing operator. For Alpheus, that meant faster entry into additional Houston-area space and the ability to sell a connected network-and-colocation package.
For StratITsphere, retaining the building and wholesale business preserved its larger-customer strategy while transferring responsibility for the retail segment to a company with a regional fiber network. The trade-off was that Alpheus depended on another company to operate the surrounding facility, while StratITsphere gave up direct control of retail customer relationships and accepted potential service or channel overlap.
Facility features announced in 2014
Alpheus’s announcement listed the following characteristics for the leased space:
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Location and disaster-recovery positioning
The address was in Katy, west of central Houston, although the transaction was marketed as serving Houston’s Energy Corridor. The announcement described the site as within 30 miles of downtown Houston and near major interstate routes.
Alpheus also said the facility was outside Houston’s 500-year floodplain, outside commercial flight paths, and more than 20 miles from chemical or flammable plants. Those statements describe the site’s 2014 positioning, not a current environmental or engineering assessment. Flood maps, surrounding development, certifications, and backup arrangements can change.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Houston’s 2014 market backdrop
At the time, Data Center Knowledge described Houston as a competitive market with roughly 30 data centers, naming CyrusOne and SoftLayer as established participants and Skybox as a newer wholesale entrant. It cited a Digital Realty estimate of less than 10 megawatts available and more than 20 megawatts under construction at the end of the second quarter of 2014.
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Those figures are historical context only. They should not be used as current Houston supply statistics or as evidence that this transaction changed the market’s total capacity.
What remains unknown
- The purchase price and other financial terms.
- The duration and detailed conditions of the lease.
- Which customer contracts, employees, equipment, or liabilities transferred.
- Whether all retail customers moved to Alpheus or entered new agreements.
- Whether StratITsphere still operates the Katy facility.
- Whether the site still uses the StratITsphere or Alpheus brand.
- Whether the 12,000-square-foot operation remained with Alpheus after later corporate changes.
Filling these gaps with assumptions would overstate what the contemporaneous announcements establish.
What happened to Alpheus later?
On May 30, 2017, LOGIX Communications announced that it would acquire Alpheus Communications. That later event is relevant when tracing the brand, but it does not by itself establish who operates the Katy facility today or what happened to the original customer contracts. The announcement is available from LOGIX.
Bottom line
StratITsphere’s 2014 transaction with Alpheus was a targeted retail-colocation transfer and long-term space arrangement. Alpheus gained more than 12,000 square feet of Houston-area enterprise capacity and a platform for bundling colocation with its Texas network. StratITsphere kept the approximately 93,000-square-foot facility and redirected its emphasis toward wholesale deployments above 5,000 square feet. The available sources do not support describing the deal as a sale of StratITsphere, a sale of the entire Katy data center, or a disclosed real-estate transaction.
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