Private Equity-Backed Data Center Sparks Major CME Outage
In a significant event impacting global markets, a data center failure occurred in Aurora, Illinois, on Friday. This facility, operated by CyrusOne, is integral to the Chicago Mercantile Exchange (CME) and handles a staggering volume of trading activity.
Overview of the Aurora Data Center
The Aurora data center spans 450,000 square feet and has functioned as a critical hub for CME Group Inc. since its construction began in 2009. It facilitates high-frequency trading and is strategically located to minimize latency for traders.
- Location: Aurora, Illinois
- Importance: Handles approximately $25 quadrillion in notional trade volume daily.
- Established: 2009
- Owned by: CyrusOne since 2016
Impact of the Cooling System Malfunction
The outage was triggered by a failure in the cooling system, which led to the shutdown of CME’s futures and options trading platforms. This disruption affected traders across various markets globally, highlighting the data center’s critical role in financial operations.
CyrusOne’s leadership stated that their team was “working around the clock” to resolve the issue. However, the malfunction raises concerns regarding the data center’s design and redundancy systems. According to industry expert Thomas Solelhac, such facilities typically incorporate multiple back-ups to prevent cooling failures of this nature.
Historical Context and Ownership Changes
CME sold the data center to CyrusOne in 2016 while retaining rental space for 15 years, effectively outsourcing its operational responsibilities. This move was aimed at expanding CME’s access to more computing resources.
Since then, CyrusOne has positioned itself as a major player in the data center market, managing around 50 facilities globally. Their acquisition strategy focuses on catering to large clients like CME.
Recent Developments in Data Center Investments
CyrusOne has attracted significant investment interest, particularly from private equity firms. In 2021, KKR & Co. and Global Infrastructure Partners completed an $11.4 billion acquisition of CyrusOne, reflecting a broader trend of private equity involvement in data center growth.
As demand for data storage and processing continues to surge, especially due to advancements in artificial intelligence, the relevance of data centers like Aurora is expected to increase.
Conclusion
The recent outage underscores the complexities involved in maintaining data center infrastructure critical to global trading. Continued investment and focus on redundancy will be essential for preventing future incidents in this pivotal sector.
