Hyperscale Connectivity Drives $3 Billion in Data Center Projects by Equinix and JV Partners

Rhea-AI Summary

Equinix (Nasdaq: EQIX) announced a $3 billion xScale data center program targeting hyperscale companies across multiple regions, including Brazil, France, and Japan. This expansion will support the growing demand for digital infrastructure and cloud services. The program is designed to meet specific operational and technical needs of hyperscale clients, accommodating large power requirements and offering extensive colocation space. Notable developments include the opening of the first xScale center in Tokyo and additional projects planned in Europe and Latin America, enhancing Equinix's global connectivity.

Positive

• Launch of a $3 billion xScale data center program to meet rising demands from hyperscale companies.
• Opening of the first xScale data center in Tokyo, fully leased by a significant tenant, demonstrating strong demand.
• Expansion into Brazil with the upcoming SP5x data center, extending services to Latin America.
• Joint ventures with GIC in both Asia-Pacific and Europe, securing over $1 billion to support expansion efforts.

Negative

• None.

REDWOOD CITY, Calif., March 9, 2021 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company^TM, today provided details on its $3 billion xScale data center program, including projects currently under development in Brazil, France, Japan and other markets. This planned global expansion, financed with the support of joint venture partners, will serve the growing demands of hyperscale companies that are deploying infrastructure at Equinix, while providing Equinix's ecosystem of 10,000 customers with access to these strategic providers.

Equinix xScale data centers serve the unique core workload deployment needs of a targeted group of hyperscale companies, including the world's largest cloud service providers. With xScale data centers, hyperscale companies can add core deployments to their existing access point footprints at Equinix, enabling their growth on a single platform that can immediately span 63 global metros and offer direct interconnection—within a vibrant set of ecosystems—to their customers and strategic business partners.

Rapid growth of the digital economy has driven increasing demand for global connectivity and hybrid multicloud solutions. For years, the world's largest cloud service providers, including Alibaba Cloud, Amazon Web Services, Google Cloud, IBM Cloud, Microsoft Azure and Oracle Cloud Infrastructure, have partnered with Equinix to leverage its global platform of more than 220 data centers to directly connect to their strategic business partners and customers. As these companies continue to expand, they require capacity at scale to match their internal compute, storage and edge cache requirements.

"Equinix xScale facilities offer hyperscale companies the unique value of Platform Equinix, including access to business ecosystems, interconnection services and local market knowledge around the world," said Krupal Raval, Managing Director, xScale, Equinix. "Our xScale data centers are engineered to meet the technical, operational, and pricing requirements of hyperscale companies that require large amounts of space and power to support massive scaling across thousands of servers for cloud, big data analytics or storage tasks, with 10, 20, or even 50 megawatts of power, all while meeting Equinix's sustainability commitments."

Regional Highlights/Key Facts:

Asia-Pacific

• Opening of TY12x in Tokyo
  On March 1, Equinix opened its first xScale data center in Tokyo, TY12x. Equinix has had early success with TY12x, securing an anchor tenant committed to the full phase one capacity and a significant portion of phase two capacity. 
• TY12x is Equinix's first xScale data center in Asia. It will provide more than 186,000 square feet (about 17,300 square meters) of colocation space and will support 54 megawatts of power to hyperscale customers all phases are complete.
• TY12x operates in close proximity to 11 International Business Exchange™ IBX® data centers in Tokyo.
• The Tokyo metro is a strategic hub for financial services companies, internet providers, and cloud, content and mobility service providers. Equinix data centers server as strategic network hubs in Tokyo, where international and major local carriers meet. In addition, Equinix in Tokyo provides proximity to leading regional internet exchanges including access to JPIX, JPNAP and BBIX. 
• Additional xScale Data Centers in Asia-Pacific
  In addition to TY12x, the OS2x xScale data center in Osaka is currently under development and is expected to open in Q4 2021. Equinix also anticipates developing one additional xScale data center in Japan in the future. The three xScale data centers in Japan are expected to collectively deliver approximately 138 megawatts of power to hyperscale customers in Japan.
• Equinix and GIC complete Joint Venture Agreement in Asia-Pacific
  In Q4 2020, Equinix completed the formation of the greater than US$1.0 billion initial joint venture in the form of a limited liability partnership with GIC, Singapore's sovereign wealth fund, to develop and operate xScale data centers in Japan.
• TY12x, OS2x and a planned future xScale data center in Japan are included in this initial joint venture.

EMEA

• Opening of PA9x in Paris
  In February 2021, Equinix opened its second xScale data center in Paris named PA9x, which is currently fully leased by a single hyperscale tenant.
• PA9x is Equinix's second xScale data center in Paris and will provide more than 29,600 square feet (about 2,750 square meters) of colocation space and support 10 megawatts of power to hyperscale customers when complete.
• PA9x operates as part of a campus with PA2 and PA3 in Saint-Denis, France.
• This metropolitan area is a strategic hub for the exchange of traffic between the U.S. and Europe, and a termination point for many submarine cable systems in the Mediterranean, bringing suppliers from Africa, the Middle East and Asia-Pacific to Europe.
• The strategic location of Equinix's facilities in Paris provides a high level of carrier connectivity, making them ideal locations to procure bandwidth and optimize network performance.
• Additional xScale Data Centers in Europe
  Six xScale facilities are currently operating or are under development in Europe. Collectively, these sites will have the capacity to deliver approximately 106 megawatts of power to hyperscale customers in Europe once all are operational. These sites include:
• Paris:  PA8x which opened in Q1 2019 and PA9x which opened in February 2021
• London:  LD11x which opened in February 2021, and LD13x which opened in Q4 2019
• Frankfurt: FR9x which is expected to open in Q4 2021, and FR11x which is expected to open in Q2 2022
• Equinix and GIC Joint Venture Agreement in Europe
  In Q4 2019, Equinix completed the formation of the greater than US$1.0 billion initial joint venture in the form of a limited liability partnership with GIC, Singapore's sovereign wealth fund, to develop and operate xScale data centers in Europe. 

Latin America

• SP5x in São Paulo
  In Q3 2021, Equinix plans to open its first xScale data center in Latin America. SP5x is located in São Paulo, Brazil, and is in close proximity to the Equinix SP4 IBX data center. It will be connected by optical fiber to the existing four Equinix São Paulo IBX data centers and will support five megawatts of power to hyperscale customers in its first phase.

Quotes:

• Jabez Tan, Head of Research, Structure Research
  "The adoption of hybrid and multicloud architectures is only picking up steam, and hyperscalers are looking for digital infrastructure partners that not only provide large amounts of space and power in strategic locations, but also a platform that enables them to interconnect with partners and customers. With the continued innovation around Platform Equinix and investments in purpose-built sites in Europe, Asia-Pacific and now Latin America as well, Equinix is well-positioned to meet hyperscalers' needs for operational reliability, global reach, and interconnectivity to rich ecosystems that are critical to serving their customers worldwide."

Additional Resources

• Equinix and GIC to Form Greater than US$1.0 Billion Joint Venture to Develop and Operate Hyperscale Data Centers in Japan [press release]
• Equinix and GIC Complete Formation of Greater than US$1.0 Billion European Data Center Joint Venture [press release] 
• Equinix Europe 2020: Hyperscale and Colocation Demand is Riding High [Equinix Blog]
• How Hyperscale Data Centers Can Power Cloud Provider Success [Equinix Blog]
• Powering Digital Leaders [e-book]

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.

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/hyperscale-connectivity-drives-3-billion-in-data-center-projects-by-equinix-and-jv-partners-301243137.html

SOURCE Equinix, Inc.

FAQ

What is the xScale data center program by Equinix?

The xScale data center program is a $3 billion initiative by Equinix aimed at developing data centers to meet the needs of hyperscale companies for large-scale infrastructure. It targets markets including Brazil, France, and Japan.

When did Equinix open the first xScale data center in Tokyo?

Equinix opened its first xScale data center in Tokyo, named TY12x, on March 1, 2021.

How does the xScale data center program benefit hyperscale companies?

The xScale program provides hyperscale companies with large amounts of space and power, access to global connectivity, and the ability to interconnect with partners and customers efficiently.

What are the expected capacities of the new data centers in Japan?

The xScale data centers in Japan are expected to collectively deliver approximately 138 megawatts of power to hyperscale customers once fully operational.

What joint ventures has Equinix formed to support its expansion?

Equinix has formed joint ventures with GIC, Singapore's sovereign wealth fund, in both Asia-Pacific and Europe, each exceeding $1 billion to develop and operate xScale data centers.