REDWOOD CITY, Calif.,
Oct. 9, 2019 /PRNewswire/ -- Equinix,
Inc. (Nasdaq: EQIX), the global interconnection and data center
company, today announced the completion of the formation of the
greater than US$1.0 billion 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. As announced with the
signing of the agreement in July, xScale data centers will serve
the unique core workload deployment needs of a targeted group of
hyperscale companies, including the world's largest cloud service
providers. The facilities will allow these key enablers of digital
transformation to streamline their continued growth, while
strengthening Equinix's leadership position in the cloud ecosystem,
as enterprises increasingly embrace hybrid multicloud as the IT
architecture of choice.
The initial six facilities in the joint venture will be located
in the Amsterdam, London (two sites), Frankfurt (two sites) and Paris markets, on some of Equinix's existing
International Business Exchange™ (IBX®) data center
campuses.
Highlights/Key Facts
- The Equinix LD10 IBX facility has been sold to the joint
venture. The portion of the facility that has been dedicated to
hyperscale deployments has been re-named the LD13x xScale data
center and will provide 10 megawatts (MW) of capacity for xScale
customers. The balance of the facility, which is dedicated to
retail colocation deployments, will be leased by Equinix from the
JV and will retain the Equinix LD10 IBX name.
- The former Equinix PA8 IBX in Paris, which has also been sold to the joint
venture, has been re-named the PA8x xScale data center. The first
phase of the facility opened in Q1 2019, and the second and final
phase is expected to open in Q4 2019. At full buildout, PA8x is
expected to support 14 MW of capacity for xScale customers.
- The FR9x xScale data center in Frankfurt will add 10 MW of capacity in Q3
2020 when the initial phase is opened. At full capacity, the
facility is expected to support 18 MW of capacity.
- The LD11x xScale data center in London will add 10 MW of capacity for
hyperscale customers in Q1 2021 when the initial phase is opened.
At full capacity, the facility is expected to support 19 MW of
capacity.
- xScale data centers provide hyperscale companies a
differentiated value proposition from existing wholesale data
center operators in two key areas:
-
- xScale data centers offer access to Equinix's comprehensive
suite of interconnection and edge services. These services tie into
the hyperscale companies' existing access points at Equinix,
thereby increasing the speed of connections to their existing and
future enterprise customers.
- xScale data centers are engineered to meet the technical and
operational requirements and price points of core hyperscale
workload deployments. This enables hyperscale companies to
consolidate core and access point deployments into one global
provider to streamline and simplify their rapid growth.
- For years, hyperscale operators, including Alibaba Cloud, Amazon Web Services, Microsoft
Azure, Oracle Cloud Infrastructure and Google Cloud, have partnered
with Equinix to leverage its global platform of more than 200 IBX
data centers to directly connect to their strategic business
partners and customers. Today, Platform Equinix® offers
the most access points—the "on- and off-ramps to the cloud"—to the
top global cloud service providers. In addition to these customer
access points, hyperscale companies are investing in large-scale
data center deployments to accommodate their rapidly growing core
workload needs. With xScale data centers, hyperscale companies can
add core deployments at Equinix to their existing access point
footprints, enabling their growth on a single platform that spans
more than 50 global metros and offers direct interconnection—within
a vibrant set of ecosystems—to their customers and strategic
business partners.
- Private connectivity between enterprises, strategic cloud
service providers and network services is essential as digital
transformation fuels higher demand for localized digital services
at the edge. According to the Global Interconnection Index
Volume 2, a market study published by Equinix, the capacity for
private data exchange between enterprises and cloud and network
service providers is forecast to grow nearly 10 times faster than
public internet traffic by 2021.
Quotes
- Charles Meyers, President and
CEO, Equinix:
"The formation of our JV with GIC is a
strategic milestone for Equinix as we continue to deepen our
relationships with the world's largest cloud and hyperscale
companies and help them meet their core workload deployment needs
and gain proximity to the thriving business ecosystems available at
Equinix. Similarly, as today's businesses are increasingly moving
to implement hybrid multicloud strategies for their digital
infrastructure, Equinix serves as a unique on- and off-ramp to
execute that strategy. We look forward to launching similar JVs in
other operating regions and believe these efforts will continue to
further differentiate Equinix as the trusted center of a
cloud-first world."
Additional Resources
- Equinix and GIC JV Signing Announcement [press release]
- Learn more about Platform Equinix [website]
- Global Interconnection Index Volume 2 [market study]
- Infrastructure is Everywhere [Gartner report]
- Equinix an Integral Part of the Hyperscale Cloud Ecosystem [IDC
Market Note]
- Equinix and GIC Partner to Develop Hyperscale Data Centers in
Europe [Structure Research
report]
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects
the world's leading businesses to their customers, employees and
partners inside the most-interconnected data centers. On this
global platform for digital business, companies come together
across more than 50 markets on five continents to reach everywhere,
interconnect everyone and integrate everything they need to create
their digital futures. www.equinix.com.
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 a material difference include,
without limitations, risks related to whether the data centers
which will be contributed to the Joint Venture will be integrated
successfully, and whether such integration may be more difficult,
time-consuming or costly than expected; risks that the expected
benefits of the Joint Venture will not occur; the challenges of
operating and managing data centers and developing, deploying and
delivering Equinix services; the ability to generate sufficient
cash flow or otherwise obtain funds to repay new or outstanding
indebtedness; any inability of the Joint Venture to obtain
financing as needed; competition from existing and new
competitors; the loss or decline in business of key
hyperscale companies; disruption to the Joint Venture making
it more difficult to conduct business as usual or maintain
relationships with customers, employees or suppliers; and other
risks described from time to time in Equinix's 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.