Equinix Invests $200 Million in Washington, D.C. Area Data Center Expansions

Rhea-AI Summary

Equinix (Nasdaq: EQIX) has announced the opening of its 16th International Business Exchange™ (IBX®) data center, DC21, in the Washington, D.C. area. This expansion is part of a $200 million investment in 2020, which also includes the earlier launch of the DC15 data center. The new facilities enhance Equinix's capabilities in a major digital infrastructure hub, catering to growing demands from enterprises, government, and financial sectors. The DC21 data center will provide over 41,000 square feet of colocation space with a capacity for 925 cabinets, eventually increasing to 3,100 cabinets.

Positive

• Equinix's significant $200 million investment in Washington, D.C. data center expansions strengthens its market position.
• DC21 will provide over 41,000 square feet of colocation space and a capacity of 925 cabinets, enhancing service offerings.
• The Ashburn campus hosts the largest internet peering point in North America, appealing to multinationals and enterprises.

Negative

• None.

REDWOOD CITY, Calif., Nov. 17, 2020 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company, today announced further expansion in the Washington, D.C. area with the opening of its 16^th International Business Exchange™ (IBX^®) data center, DC21. With the addition of DC21, as well as the opening of the DC15 data center earlier this year, Equinix has invested more than $200 million in the Washington, D.C. area in 2020, as the area remains one of the most highly interconnected regions powering the global digital economy. The new facilities strengthen Equinix's position as a leading digital infrastructure and service provider in the Washington, D.C. metro area offering businesses, as well as multinationals, increased opportunities to leverage a trusted platform to bring together and interconnect the foundational infrastructure to power their success.

Equinix's newest Washington, D.C. area data centers are part of Equinix's data center campus in Ashburn, VA, home to the largest internet peering point in North America and one of the largest in the world—a strategic communications hub for the eastern U.S. and a major gateway to Europe. The expansion of its Ashburn Campus will provide Equinix additional capacity to respond to accelerating customer demand within the rapidly growing enterprise, government, cloud and financial services industries.

The Washington, D.C. area is one of four markets that includes Equinix Metal™, a new, fully automated and interconnected bare metal service launched in October. With this new service, companies have the option to deploy the physical infrastructure of their choice at software speed across Equinix's trusted platform. Together with other digital infrastructure building blocks in the Equinix portfolio, customers now have a broad range of physical and virtual deployment alternatives to place infrastructure wherever they need it and connect to everything they need to succeed.

The expansion of the Equinix Ashburn Campus also includes a Co-Innovation Facility (CIF) where leading technology vendors in the digital infrastructure space can test, demonstrate and evolve their products in collaboration with Equinix. The CIF is a new capability, hosted by Equinix, that enables innovative suppliers to work with Equinix on trialing and developing methodologies that will be used to help define the future of digital infrastructure and services.

Highlights / Key Facts

• DC21 is a two-story, state-of-the-art data center designed to deliver both small- and large-capacity deployments. The innovative, modular construction incorporates Equinix's Flexible Data Center (FDC) principles, which leverage common design elements for space, power and cooling to reduce capital costs while ensuring long-term maintenance predictability. The $95 million first phase of DC21 will provide more than 41,000 square feet of colocation space, offering an initial capacity of 925 cabinets. Upon completion of the planned future phases, DC21 is expected to provide total capacity of 3,100 cabinet equivalents and colocation space of more than 124,000 square feet.
• The $111 million first phase of DC15 opened in Q2 2020 with an initial capacity of 1,600 cabinet equivalents and colocation space of approximately 23,000 square feet.
• The Washington, D.C. metro represents the largest colocation market in the U.S. and, with the opening of DC21, includes 16 Equinix IBX data centers that house more than 200 network service providers—more than any other data center provider in the Washington D.C. metro area. The Equinix Ashburn campus is the single most-dense interconnection hub in the U.S., providing proximity to financial enterprises, content and digital media services, global networks and cloud service provider. 
• The Equinix Ashburn Campus provides a wide range of interconnection solutions, including Equinix Fabric^TM — formerly Equinix Cloud Exchange Fabric. Equinix Fabric is an on-demand, SDN-enabled interconnection service that allows any business to connect between its own distributed infrastructure and any other company's distributed infrastructure, including the world's largest network service and cloud providers on Platform Equinix^®. Through Equinix Fabric, customers in Ashburn can set up direct connectivity with international and local cloud service providers across the U.S., including Alibaba, AWS, Google Cloud, Microsoft Azure, Oracle Cloud, SAP Cloud and SoftLayer, as well as major network service providers.
• Equinix's long-term goal of using 100% clean and renewable energy for its global platform has resulted in significant increases in renewable energy coverage globally, including 100% renewable throughout the U.S. Equinix continues to make advancements in the way it designs, builds and operates its global platform, with high energy efficiency standards. DC21 and other Equinix Ashburn campus customers canl benefit from reductions of their CO₂ footprint through Equinix's renewable energy procurement strategy and the use of energy-efficient systems throughout these facilities.
• Currently, the global footprint of Platform Equinix spans more than 225 IBX data centers across 63 markets and 26 countries, providing digital infrastructure and services for more than 9,500 of the world's leading businesses. In the U.S, Equinix has more than 80 IBX data centers across key metros, including Silicon Valley, Dallas, Chicago, New York, Miami and Washington, D.C.

Quotes

• Kelly Morgan, Research Director at 451 Research, part of S&P Global Market Intelligence
  "Ashburn, in Loudon County just outside of Washington, D.C., is a central connectivity hub and critically important to the U.S. cloud and infrastructure story. Enterprises that previously did not see a need to improve networks may now, as a result of the pandemic, be open to new approaches and ready to try network hubs. This is placing an increased focus on data centers that can offer direct connections to the cloud with private on-ramps."
• Jon Lin, President, Americas, Equinix:
  "D.C. continues to prosper as a key digital hub for businesses around the world despite the challenges faced with the COVID-19 pandemic. Our continued expansion in this important metro creates more opportunities for businesses to leverage Platform Equinix as the central component to their digital foundation while enabling them to grow and scale at software speed." 

Additional Resources

• Strengthening the Heart of Digital Infrastructure [blog]
• Creating the Digital Infrastructure Capital of the World [blog]
• Equinix Washington DC Data Centers [website]
• Equinix Washington D.C. Metro [data sheet]
• Platform Equinix [website]
• Equinix Sustainability Report [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. 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 Equinix's recent investment in Washington, D.C. area?

Equinix has invested $200 million in data center expansions, including the opening of the DC21 IBX data center.

What is the capacity of the new DC21 data center?

DC21 will initially provide 41,000 square feet of colocation space with a capacity for 925 cabinets.

What advantages does the Ashburn campus offer?

The Ashburn campus is the largest internet peering point in North America, providing significant connectivity benefits.

How does the expansion benefit businesses in the area?

The expansion supports increased customer demand and offers enhanced interconnection opportunities for enterprises and multinationals.

What industries will benefit from Equinix's new data centers?

The expansions will serve the enterprise, government, cloud, and financial services industries.