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Phillip Koblence

Phillip Koblence

COO & Co-Founder
New York Internet
13 January 2025

New York Internet (NYI) offers comprehensive hybrid solutions across cloud, multi-cloud, colocation and bare metal – with powerful connectivity capabilities.

Can you tell us your origin story and how New York Internet (NYI) started back in the 90s?

My journey with NYI began in 1996, essentially by chance. My brother, who was seven years older and working as a hardware analyst, was laid off from Oppenheimer. He went traveling, and during that time, I stumbled upon the internet through an AOL CD. I was fascinated—it opened up a new world of communication and connection that felt dynamic and full of potential. When my brother returned, we decided to explore this internet thing together, not exactly knowing what we’d do. He ended up installing computers on the side, and eventually, a job opportunity led me to work as a paralegal. From there, we were inspired to start "New York Internet," which sounded strong and exciting to us. So, in 1996, we officially registered the name and began to explore what we could do in this space.

We didn’t have much of a plan initially; we were simply two young guys renting office space and figuring it out as we went along. Our first projects were designing websites and reselling dial-up internet access. We were bootstrapped, funding things through credit cards and whatever money we could scrape together, including some of my Bar Mitzvah money for our first server. Our approach was very hands-on, learning by doing and making mistakes along the way. The dot-com boom gave us the momentum to keep evolving—taking on whatever projects came our way, from designing logos to installing computer hardware to wiring buildings for internet access. It was a time of constant learning, adaptation, and growth.

Was it easier back then to jump into something as new as the internet industry?

In many ways, yes. It was still the early days, so raising money wasn’t even on our radar. I came from a family with an entrepreneurial mindset—my father was a jeweler, and no one I knew worked for big corporations. Along with others in the space, we were naive about what we were doing, but that had its advantages. We weren’t competing in a crowded field, and there weren’t established processes or a clear roadmap to follow. We spent weekends and evenings experimenting with ways to pay the rent and build something sustainable.

It was all very grassroots, running wire across buildings, creating makeshift data racks, and learning the tech as we went. Our first data center was built from scratch, with bread racks and limited infrastructure. It was unconventional, but we were determined to create a business model that could offer recurring revenue which led to our starting hosting services. Through trial and error, we built something reliable enough to grow a solid customer base, learning about the industry from the ground up.

When did you feel that NYI had become a true survivor of the dot-com era?

Surviving has been part of our DNA, shaped by a scrappy ethos that my parents, both immigrants, instilled in us. The real turning point was in 2000, when we moved our operations to the Wall Street area, where we started building out our own data center, though we didn’t initially know it would become that. We converted an office space into a basic data center setup, ripping up carpet, installing cooling and power redundancies—everything we could manage ourselves. 

Then, the tragic attacks of 9/11 happened. Despite the chaos and massive disruption, internet infrastructure held strong when other forms of communication were down, confirming its robustness and criticality—a transformative realization for us.  On that day we also acquired a first-hand understanding of accountability in supporting “mission critical” infrastructure.  We had to literally sneak into our building to clean the HVAC and ensure uptime and continuous service for our clients. The concept of accountability became real and led to one of NYI’s core principles.

In 2003, we moved into a more advanced data center that was being vacated, giving us access to facilities we couldn’t have built ourselves. This move allowed us to grow into a substantial player in the NY/NJ metro area. 

Who are NYI’s clients today, and what role does NYI play in the market?

Today, NYI serves a mix of carriers, cloud providers, and enterprises, particularly those heavily reliant on connectivity who can benefit from access to a vast network of services. We facilitate complex infrastructure solutions in New York and Chicago and in key global markets through a trusted ecosystem of partners. We currently sit at the center of connectivity, particularly at 60 Hudson Street which has a long history as a global connectivity hub.

We offer a high-touch, personalized service model that differentiates us in a market dominated by large-scale providers. Our hands-on, collaborative approach is something our clients really value, and they often view our team as an extension of theirs. This high-touch service model is particularly valuable for international companies needing a foothold in the U.S. without the resources for a local team. 

How is NYI staying ahead, especially with developments like quantum computing on the horizon?

Staying ahead has always been about leveraging relationships. Being in the industry for nearly 30 years, I’ve met many influential figures. One such person is Peter Feldman, a pioneer in the data center space and the Co-Founder and original President for TelX, now DRT. Peter had spent years supporting research and development initiatives in the Quantum Computing community. When Equinix’s NY8 facility at 60 Hudson Street became available, we partnered to take it over launching NYI-QTD, a partnership between NYI and Peter’s new company QTD Systems. 

QTD stands for Quantum to Digital. The premise of QTD is to leverage the existing, substantial and irreplaceable digital distribution capabilities that exist at 60 Hudson Street to create an environment through which emerging Quantum technologies in compute, networking, devices and security can be effectively commercialized. It has been very exciting to see the groundbreaking work of the brilliant minds in this sector who now have a home for their bleeding edge offerings. NYI’s clients benefit from being part of this innovative environment, which we believe will play a crucial role in future-proofing their own operations.

What keeps you up at night in the context of NYI?

For anyone in the data center industry, the biggest worry is downtime. But beyond that, it’s the pace of change and the role of technology, particularly AI and automation. While I’m excited by the potential, I also see risks. There’s a rush to embrace these technologies, but without clear guardrails, there’s a risk of creating solutions that could lead to significant disruptions if not managed properly.

I am cautious about how quickly we’re moving towards automation without fully understanding the implications. AI, in particular, accelerates everything, potentially amplifying mistakes. My concern is that this rapid pace could outstrip our ability to maintain the reliability and human touch that are core to our business values.

What do you envision for NYI and the digital infrastructure landscape by 2030?

Looking forward, the focus will be on data processing and connectivity, especially in densely populated areas like New York and Chicago. Cities like these are data hubs, and as AI and IoT continue to expand, data generation will only increase. Meeting this demand involves balancing proximity to data processing with improved connectivity. Data centers will have to be adaptable, particularly as power and space become even more constrained in urban environments. Connectivity is perhaps the most underappreciated yet essential element of digital infrastructure. With aging fiber networks, especially in major cities, we’ll need significant reinvestment to support the growing demand.