Equinix announces first hyperscale data centres as part of $1bn joint venture
4 July 2019 | 0
Equinix has formed a joint venture deal worth over $1 billion (€886 million) with Singapore’s sovereign wealth fund, GIC, to develop and operate xScale data centres in Europe.
Under the terms of the agreement, GIC will own an 80% equity interest in the joint venture and Equinix will own the remaining 20%. Equinix will sell both its London LD10 and Paris PA8 IBX data centres and certain other development interests to the joint venture.
Six additional xScale data centres will be developed in Amsterdam, Frankfurt and London, which will provide approximately 155 megawatts of power capacity when complete.
The facilities will serve the main workload deployment needs of a targeted group of hyperscale companies including Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure and Google Cloud. Currently, global deployments from the top hyperscale companies exceed $500m (€443m) in annual revenue at Equinix.
The new xScale data centres will be engineered to meet the technical and operational requirements and price points of core hyperscale workload deployments as well as offering access to Equinix’s interconnection and edge services.
Charles Meyers, president and CEO, Equinix, said: “Partnering with a world-class investment partner like GIC will provide the opportunity to make significant capital investments in order to capture targeted large-footprint deployments while continuing to optimise our capital structure.
“The JV [joint venture] structure will enable us to extend our cloud leadership while providing significant value to a critical set of hyperscale customers. We look forward to launching similar JVs in other operating regions and believe that these efforts will continue to further differentiate Equinix as the trusted centre of a cloud-first world.”