Equinix Invests $55 Million to Build Its Third Data Center in Osaka

Rhea-AI Summary

Equinix, Inc. (Nasdaq: EQIX) announced a $55 million investment to establish its third International Business Exchange™ (IBX®) data center in Osaka, Japan, named OS3. This facility aims to enhance Equinix's presence in Osaka, a burgeoning digital hub, and cater to local and international businesses. OS3 is expected to offer 900 cabinets initially, expanding to 2,500 cabinets upon full completion by Q4 2021, enhancing connectivity options for enterprises in the Kansai region.

Positive

• Initial investment of $55 million for OS3 data center in Osaka.
• Expected capacity of 900 cabinets, expanding to 2,500 at full buildout.
• Direct connections to major cloud providers, enhancing service accessibility.
• Strategic location in Osaka's growing digital infrastructure market.

Negative

• None.

REDWOOD CITY, Calif. and OSAKA, Japan, Nov. 25, 2020 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company, today announced an initial investment of US$55 million to build its third International Business Exchange™ (IBX^®) data center in Osaka, Japan. To be named OS3, the new facility will further expand Equinix's footprint and enable local and global businesses to harness Platform Equinix^® to bring together and interconnect the foundational infrastructures that power their success.

Osaka is home to the second-highest concentration of businesses in the country and has become a hub for startup companies and innovation. It is gearing up to become Japan's next international financial center and drive the growth of the digital economy. With numerous businesses related to energy, healthcare and medical services, and manufacturing, Osaka has evolved to become a prime location for data centers in Japan, the second largest following Tokyo.

OS3 will offer close proximity to major internet and peering exchanges and a vibrant ecosystem of network, cloud and digital content providers. It will also offer direct, low-latency connections to the large Kansai region, which consists of major cities including Osaka, Kyoto and Kobe. This will allow digital leaders to leverage OS3 to scale and utilize digital infrastructure for optimal performance. OS3 is scheduled to open in Q4 2021.

Highlights / Key Facts:

• The first phase of OS3 is expected to provide an initial capacity of 900 cabinets and more than 33,000 square feet (approximately 3,070 square meters) of colocation space. At full buildout, the facility will provide 2,500 cabinets with a total colocation space of approximately 89,340 square feet (more than 8,300 square meters).
  
  
• Directly connected to the Equinix data center campus in Osaka, OS3 will provide a wide range of interconnection solutions, including Equinix Fabric^TM— formerly Equinix Cloud Exchange Fabric. Through this on-demand, SDN-enabled interconnection service, businesses can connect between their own distributed infrastructure and any other company's distributed infrastructure, including some of the world's largest network service and cloud providers on Platform Equinix. Customers in Osaka can establish direct and secure access to cloud providers such as Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure, Google Cloud, etc., to address their rising needs of hybrid multicloud infrastructure.
  
  
• Currently offering approximately 64,500 square feet (6,000 square meters) of colocation space in Osaka, the Equinix Osaka campus consists of two IBX data centers and serves as a business hub for more than 130 companies.  Customers can choose from a broad range of network services offered by over 25 network service providers. With Platform Equinix, companies in the Kansai area can bring together all the right places, partners and possibilities to create the foundational infrastructure they need to succeed.
  
  
• 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 puts this sector's growth in Asia-Pacific at 29%, higher than the next largest region, North America.
  
  
• Earlier this year, Equinix announced its intention to form a joint venture with GIC to develop and operate hyperscale data centers in Japan. The three initial facilities in the joint venture—one in Osaka and two in Tokyo—will serve the unique core workload deployment needs of a targeted group of hyperscale companies, including the world's largest cloud service providers.
  
  
• Today, the global footprint of Platform Equinix spans more than 220 IBX data centers across 63 metros, providing digital infrastructure for more than 10,000 of the world's leading businesses. In Asia-Pacific, Equinix currently has 46 IBX data centers in key metros across Australia, China, Hong Kong, Japan, Korea and Singapore. Equinix has a national footprint of 13 IBX data centers across Tokyo and Osaka in Japan. 

Quotes:

• Mimei Ito, Research Manager, IT Services, IDC Japan
  "With the rising adoption of digital transformation, together with the acceleration of advanced technology such as AI and IoT, we are expecting a strong growth of demand for digital infrastructure in Japan, despite the short-term economy slowdown amid COVID-19. As the service level of digital infrastructure directly impacts the quality of user experiences, the expansion of the Equinix data center in Osaka reflects a rapid increase in the deployment of digital workloads among enterprises and their customers in Japan's second-largest metropolitan area. This is expected to accelerate further through enhanced interconnectivity of cloud ecosystems."
  
  
• Jeremy Deutsch, President, Equinix Asia-Pacific
  "Digitalization is no longer just an option, but a prerequisite for businesses to succeed. Equinix has always been committed to delivering a single platform which creates the foundational infrastructure to support customers' evolving needs for digital infrastructure. Our expansion in Osaka marks another key milestone in our ongoing plans to deliver Platform Equinix to more businesses in the fast-growing Asia-Pacific region. With our world-class infrastructure and solutions, we will continue to be the trusted partner of digital leaders by enabling them to seize the opportunity with agility, speed and confidence."
  
  
• Kuniko Ogawa, Managing Director, Equinix Japan
  "As a large metropolitan area with many global and locally based enterprises, Osaka has emerged as a significant market. In the past years, we have seen rising demand for secure, high-performance, and low-latency connectivity in the Kansai area. With our planned OS3 IBX data center, backed by our global footprint and vast array of services offered on Platform Equinix, we are set to expand our ability to bring together and interconnect the infrastructure that businesses need to fast-track their digital advantage."

Additional Resources

• The Emergence of Osaka as a Digital Hub [Blog]
• OS3 Data Sheet [website]
• Equinix Osaka 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 Equinix's recent investment in Osaka?

Equinix announced a $55 million investment to build a new data center, OS3, in Osaka, Japan.

What is the expected capacity of the new OS3 data center?

The OS3 data center is expected to provide an initial capacity of 900 cabinets, increasing to 2,500 cabinets upon full buildout.

When is the OS3 data center scheduled to open?

The OS3 data center is scheduled to open in Q4 2021.

How does the OS3 data center benefit local businesses?

OS3 will enhance connectivity options for local and global businesses, providing direct access to major cloud service providers.

Why is Osaka significant for Equinix's expansion?

Osaka is emerging as a major digital hub in Japan, with a high concentration of businesses and demand for digital infrastructure.