Equinix Expands to Support Singapore's Growth as a Regional Digital Hub and Smart Nation

Rhea-AI Summary

Equinix (Nasdaq: EQIX) announced the expansion of Platform Equinix with a new International Business Exchange™ (IBX®) data center in Singapore, named SG5, backed by an initial investment of US$144 million. Scheduled to open in H1 2021, SG5 will feature over 1,300 cabinets and 18,400 square feet of colocation space in its first phase. This expansion aligns with Singapore's Smart Nation initiative, addressing the surge in demand for cloud connectivity as businesses transition to digital operations.

Positive

• Initial investment of US$144 million for SG5 data center expansion.
• SG5 provides essential digital infrastructure support for enterprises.
• SG5 will initially offer >1,300 cabinets and >18,400 square feet of colocation space.
• Direct connection to existing IBX data centers enhances connectivity options.
• Supports Singapore’s Smart Nation initiative for digital transformation.
• Plans for significant growth with potential full capacity of ~5,000 cabinets.

Negative

• None.

REDWOOD CITY, Calif. and SINGAPORE, Dec. 1, 2020 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company, today announced the expansion of Platform Equinix^® with its fifth International Business Exchange™ (IBX^®) data center in Singapore, to be named SG5. With an initial investment of US$144 million in the first phase, the purpose-built facility will meet growing demand for cloud connectivity for enterprises as they transform digitally. SG5 is scheduled to open in H1 2021, providing an initial capacity of more than 1,300 cabinets in the first phase. 

As cloud adoption is accelerating and growing in complexity, businesses increasingly rely on hybrid and multicloud ecosystems for agility and scalability. This is aligned with Singapore's Smart Nation initiative, which is driving businesses in the country to rapidly undertake digital transformation to build resiliency and stay competitive in the digital economy. Singapore's advancement toward these goals is positioning the island city-state as a digital hub and gateway for the Asia-Pacific region. With this in mind, the addition of the SG5 IBX to Platform Equinix will provide essential digital infrastructure support and global connectivity that will enable enterprises to build and expand their cloud ecosystems to fast-track their digital advantage.

Highlights / Key Facts:

• The first phase of SG5 will have a capacity of 1,300 cabinets and approximately 18,400 square feet (1,710 square meters) of colocation space. At full buildout, the facility is targeted to provide approximately 5,000 cabinets, with a total colocation space of close to 129,000 square feet (12,000 square meters).
• The new purpose-built, nine-story facility will be located at the Tanjong Kling data center park. This will strengthen Equinix's cross-island presence and location diversity, with four of Equinix's current IBX data centers strategically spread across the island.
• SG5 will be directly connected to the four existing Equinix IBX data centers in Singapore via low-latency dark fiber links and will enable customers to securely interconnect with more than 705 companies in the market. Customers will be able to choose from a broad range of network services from over 200 providers, and interconnect directly to customers and partners in their digital supply chain.
• As a regional hub and a gateway for Asia-Pacific, Singapore serves as a key location to many multinational corporations in the region. To this end, Equinix has made significant investments into developing Singapore's digital infrastructure over the years, including an initial investment of US$85.3 million into the establishment of the SG4 IBX, which opened this year.
• Demand for digital infrastructure continues to grow on a local and regional scale. According to the Global Interconnection Index Volume 4 (GXI Vol.4), a market study published by Equinix, Cloud & IT Services are expected to lead the growth in the Asia-Pacific region, reaching an anticipated 1,374 Tbps by 2023. This reveals that traditional businesses in the region are moving workloads to an edge-first architecture as COVID-19 accelerates digital transformation in Asia-Pacific.
• Equinix has committed to a long-term goal of using 100% clean and renewable energy and lowering its carbon footprint for its global platform. With 75% renewable energy used in Asia-Pacific in Q3 2020, SG5 follows in this vein and will adopt a number of green features for efficient energy use. These include motion-activated LED lights, automated control and regulation of motors, as well as hot aisle containment and ceiling plenum infrastructure. Recycled NEWater will also be used for cooling purposes, which is an energy-saving process that is aligned with the Singapore government's green initiatives.
• Equinix Singapore data centers are also certified to meet rigorous environmental and energy management standards. The Equinix SG1 IBX data center is BCA-IMDA Green Mark certified; the SG2 and SG3 facilities have been certified to meet Platinum status; and SG4 is certified to meet GoldPLUS status.
• SG5 adds to the existing Equinix footprint of four IBX data centers in Singapore, currently providing more than 468,000 square feet (43,500 square meters) of colocation space as well as software-defined interconnection to cloud service providers (CSPs) through Equinix Fabric™—formerly Equinix Cloud Exchange Fabric.
• Through Equinix Fabric, customers can connect to cloud on-ramps to set up direct connectivity with international and local cloud service providers including AWS, Google Cloud and Microsoft Azure. Equinix has over 40% private cloud on-ramps in markets where it operates, including Singapore, and has twice as many metros with multicloud on-ramps compared to the market.
• Today, the global footprint of Platform Equinix spans more than 220 IBX data centers across 63 metros, providing digital infrastructure for more than 9,500 of the world's leading businesses. In Asia-Pacific, Equinix currently has 46 IBX data centers in key metros across Australia, China, Hong Kong, Korea, Japan and Singapore. Equinix also recently announced its plan to build OS3 in Osaka, Japan, and PE3 in Perth, Australia.

Quotes:

• Sandra Ng, Group Vice President, Practice Group, IDC Asia/Pacific
  "Digital infrastructure is key to success and competitive advantage for enterprises in the next normal. IDC's CEO research in early 2020 showed that the leading priority among CEOs in Asia-Pacific is building a digital IT infrastructure that supports resilient operations and pervasive experiences. Equinix's investment in Singapore will further strengthen the country's digital infrastructure to support its Smart Nation journey as well as enterprise digitalization and resiliency."
• Jeremy Deutsch, President, Equinix Asia-Pacific
  "As the global economy and the Asia-Pacific region continue to grow, we see a strong demand for digital infrastructure to support business growth. This is especially evident in Singapore, which is proving to be a key hub for digital business in the region. Traditional infrastructure is struggling to keep up with this digital demand, leading enterprises to explore hybrid and multicloud options to further their transformation. The SG5 IBX data center aims to create more opportunities for enterprises in the region to build a strong digital foundation, enabling them to develop into the digital leaders of tomorrow."
• Yee May Leong, Managing Director, Equinix South Asia
  "Singapore continues to thrive as a regional digital hub despite current pandemic and economic challenges. Today's businesses demand a solid digital infrastructure to grow and scale, leveraging vital ecosystems and cloud services via Platform Equinix. We are catering to the needs and demands of our customers by expanding our local footprint to enable regional and global growth as Singapore continues its Smart Nation journey and enterprises pursue digital transformation."

Additional Resources

• Forging the Asia Digital Economy with Expansion in Singapore [Blog]
• SG5 Data Sheet [website]
• Equinix Invests $85 Million to Build Fourth Data Center in Singapore [release]
• Equinix Singapore Data Centers [website]
• Platform Equinix [website]

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.

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements about interconnection bandwidth growth, the rate of adoption of digital transformation, and the benefits of the network effect. Actual results may differ materially from expectations discussed in such forward-looking statements and the predictions made from the Global Interconnection Index. Factors that might cause such differences include 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 Equinix's SG5 data center in Singapore?

The SG5 data center supports Singapore's Smart Nation initiative and addresses increasing demand for cloud connectivity.

How much did Equinix invest in the SG5 data center?

Equinix made an initial investment of US$144 million for the SG5 data center.

When is the SG5 data center scheduled to open?

The SG5 data center is scheduled to open in H1 2021.

What capacity will the SG5 data center have?

In its first phase, SG5 will have >1,300 cabinets and approximately 18,400 square feet of colocation space.

How will SG5 enhance connectivity for businesses?

SG5 will enable customers to interconnect with >705 companies and access services from over 200 network providers.