Equinix and Omantel Open New Muscat Data Center

Rhea-AI Summary

Equinix and Omantel have launched a new International Business Exchange™ (IBX®) data center in Barka, Oman, enhancing the region's digital infrastructure. The facility, MC1, will serve as a carrier-neutral hub for cloud providers and content providers, offering over 23,600 square feet of colocation space with future growth potential. Positioned as a regional interconnection hub, it provides direct access to submarine cable systems and caters to the rising demand for low-latency connections in the Middle Eastern market.

Positive

• MC1 data center enhances Equinix's footprint in the MENA region, providing strategic access to essential interconnection services.
• Direct connectivity to multiple subsea cable systems improves performance and security for customers in Oman and nearby markets.
• The facility can grow to accommodate more than 2,150 cabinets, indicating strong future capacity.

Negative

• None.

REDWOOD CITY, Calif. and MUSCAT, Oman, Oct. 5, 2020 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company, and global communications provider Oman Telecommunications Company (Omantel, an MSM-listed company: OTEL), today announced the opening of their new International Business Exchange™ (IBX®) data center in Barka, near Muscat—the capital of Oman. Known as MC1, the facility is the first world-class, carrier-neutral hub in Oman where carriers, content providers and cloud providers can colocate critical IT infrastructure.

Strategically located between Asia, Africa and Europe, the new Equinix IBX in Oman will serve as a regional interconnection hub providing ultra-low latency connection points between key global business markets. The new IBX benefits from direct connectivity to strategic cable landing stations (CLS) and subsea cable systems that terminate directly inside the facility, and is expected to provide customers with increased performance and security, along with significant cost savings.

Highlights/Key Facts

• Equinix and Omantel announced in July 2018 that the companies had entered into a joint venture to deliver data center and interconnection services to customers in the Middle East through the development of the new network-dense data center. The resulting site, MC1, is operated by Equinix and includes 23,600+ square feet of colocation space and 725 cabinets. The site has capacity to grow to 2,150+ cabinets with future IBX builds.
• MC1 is Equinix's first data center in Oman and its fourth in the MENA region.
• MC1 provides customers with direct access to the Equinix Internet Exchange™, creating a regional peering hub for networks, content providers and large enterprises to exchange internet traffic over the world's largest peering solution.
• Equinix's 2019-20 Global Tech Trends Survey found over 40% of IT decision-makers in EMEA are prioritizing connecting with new digital ecosystems as part of their organization's overarching technology strategy.
• With subsea cable systems terminating directly in MC1, the site benefits from continued investments by Omantel in multiple strategic subsea cable systems throughout the world, reaching over 50 countries globally. Omantel currently has investments in more than 20 subsea cable systems and leverages six diverse landing stations in Oman and one in Marseille, France.
• Based on demand and requirements, customers across the Gulf States and wider MENA region can also leverage other Equinix data centers in the region for dual access to content providers, allowing carriers, content providers and cloud providers to leverage interconnection and further build resilience into their IT and network infrastructures.
• According to the latest edition of the Global Interconnection Index (GXI), enterprise consumption of interconnection bandwidth is expected to grow at a 67% CAGR in EMEA by 2022, outpacing other forms of business data exchange, as businesses respond to rapidly growing volumes of data.

Quotes

• Talal Al Mamari, CEO, Omantel
  "Today, data center infrastructure sits at the heart of global ICT and enables all of us to enjoy the cloud-based apps and services we use every day. The new IBX in Oman represents a significant step forward for Oman and the Middle Eastern ICT markets. We are delighted that the facility is now open and, together with Equinix, we hope to enable a new era of telecommunications both regionally and globally. Coupled with the majority of the GCC's international submarine cables landing in Oman, all accessible from the Equinix data center, we believe this partnership will further enhance Oman's competitiveness in the global digital economy."
• Sohail Qadir, Vice President, Omantel Wholesale Unit
  "Omantel provides cable landings and connectivity to more than 120 cities across the world. We also have investments in 20 subsea cable systems, and leverage six diverse landing stations in Oman and another in France. Additionally, Omantel is an investor in AAE-1 consortium—one of the largest and newest high-capacity connections between Asia, Africa and Europe. And through this partnership with Equinix, we believe we are well-positioned now to provide the current and future needs of carriers, content providers, and cloud providers". 
• Eugene Bergen Henegouwen, President, EMEA, Equini
  "We are seeing an accelerated demand for digital transformation in MENA. Across different sectors, organizations are re-assessing their cloud adoption strategies and cloud readiness. In the digital age, companies need to reach all the right places and partners to seize opportunity, and they need to do it out at the edge. Our partnership with Omantel greatly supports our ability to meet this need, particularly as our customers can now leverage Omantel's significant subsea cable infrastructure. This type of colocation and interconnection services platform creates a magnetic effect that draws in more users that can leverage a global subsea cable fabric connecting cities, countries and continents together. Along with this, our investment in the Middle East market—including the new data center in Oman—reflects our commitment to our customers as they continue their digital transformation journeys."
• Judith Gardiner, Vice President, Growth and Emerging Markets, Equini
  "We know from our latest tech trends survey that over 40% of IT decision-makers in the region are utilizing interconnection to increase the flexibility of connectivity, and that's certainly something we will offer at MC1. We're giving our customers direct access to the best markets via the best routes, all over the world, and the Equinix Internet Exchange link allows network operators, content providers and enterprises across industries, to easily and efficiently exchange internet traffic—crucial for those wishing to compete in today's global digital economy."
• Kamel Al-Tawil, Managing Director for Middle East and North Africa, Equinix
  "As IP traffic growth continues to accelerate, it is more important than ever that the IP peering community has a scalable, reliable and globally consistent Internet Exchange solution in all markets where they want to peer traffic. Oman is strategically positioned between Asia, Africa and Europe, and with our partnership with Omantel, we intend to create a hub that will allow drivers of internet traffic to efficiently peer, and expand operations across the world".

Additional Resources

• Equinix 2019-20 Global Tech Trends Survey [report]
• Global Interconnection Index Volume 3 [report]
• IDC MarketScape: Worldwide Colocation & Interconnection Services Report [report]
• Learn more about Equinix Cloud Exchange Fabric® [website]
• Learn more about Equinix Internet Exchange™ [website]
• Equinix and Omantel Enter Agreement to Build New Equinix Data Center in Oman [press release]

About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today's businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

About Omantel
Omantel Wholesale is the international and domestic wholesale arm of Oman Telecommunications Company S.A.O.G. (Omantel), the first and leading integrated telecommunications service provider in Oman.

Founded in 1970, Omantel is a joint-stock company listed in Muscat Securities Market and is 51% owned by Oman Investment Fund (OIF), a wholly owned investment arm of the Omani government.

The company has laid the groundwork for telecommunications and technological advancement in the country and it continues to invest heavily within its own borders and abroad. As a result, Omantel has acquired a controlling stake in Kuwaiti Mobile Telecommunications Company (Zain Group) last year, making it the second-largest shareholder in the company.

Omantel Wholesale capitalizes on ultra-low latency networks to enable innovation and digital transformation globally, utilizing Oman's geographic advantage at the absolute nexus of the east, west, north and south to enable its customers and partners to deliver their services with the best possible end-user experience.

For more information, please visit www.omantel.om/Wholesale

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX^® data centers and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; a failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

 

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SOURCE Equinix, Inc.

FAQ

What is the significance of the new data center opened by Equinix in Oman?

The new data center, MC1, is the first world-class carrier-neutral hub in Oman, enhancing digital infrastructure and providing critical IT services.

How does the MC1 data center benefit customers?

It provides ultra-low latency connections, direct access to strategic cable landing stations, and supports increased performance and security.

What is the expected growth capacity of the MC1 data center?

The MC1 facility has a current colocation space of over 23,600 square feet and can expand to accommodate more than 2,150 cabinets.

When was the partnership between Equinix and Omantel established?

The partnership was announced in July 2018 to develop data center and interconnection services in the Middle East.

How does the MC1 data center relate to regional interconnectivity?

MC1 will serve as a regional interconnection hub, connecting Asia, Africa, and Europe, thus enhancing the digital economy in Oman and the MENA region.