REDWOOD
CITY, Calif., June 13,
2022 /PRNewswire/ -- Equinix, Inc. (Nasdaq:
EQIX), the world's digital infrastructure company™, and PGIM Real
Estate, the real estate investment and financing arm of PGIM,
Prudential Financial's* global asset management business, today
announced the opening of the first xScale data center in
Sydney, named SY9x. This milestone
follows the closing of the US$575
million joint venture between the parties in March 2022.
With the closing of the joint venture in Australia, Equinix's global xScale data center
portfolio will be greater than US$8
billion of investment across 36 facilities, and expects to
deliver more than 720 megawatts (MW) of power capacity when fully
built out. Including SY9x in Sydney, Equinix currently operates nine xScale
data centers across all three regions including FR9x in
Frankfurt, LD11x and LD13x in
London, OS2x in Osaka, PA8x and PA9x in Paris, SP5x in São Paulo, and TY12x in
Tokyo. An additional eight xScale
builds are under development for approximately 70 MW of incremental
capacity.
Australia's cloud computing
market is expected to grow by 12.5% to reach US$14.1 billion in 2025, supported by large scale
digital transformation initiatives across both the public and
private sectors.[1] Furthermore, according to the Global
Interconnection Index Volume 5 (GXI Vol. 5), a market study
announced by Equinix, Sydney is
forecast to have an estimated 43% compound annual growth rate
(CAGR) for enterprise private interconnection to the cloud and IT
providers between 2020-2024, which is one of the highest in the
Asia-Pacific region.
As the first of the two data centers to be developed and
operated under the joint venture with PGIM Real Estate, SY9x
currently provides more than 14 MW of power capacity and will
provide more than 28 MW when fully built out to meet the surging
demand for cloud-based platforms and services among businesses in
Australia.
By deploying at Equinix xScale data centers, hyperscale
companies can add core deployments to their existing access point
footprints at Equinix International Business ExchangeTM
(IBX®) data centers, enabling their growth on a single
platform that can immediately span 70 global metros and offer
direct interconnection to an ecosystem of more than 10,000
customers.
Highlights/Key Facts:
- SY9x is located in Rosehill, adjacent to the Western Sydney CBD
of Parramatta. The second xScale facility, to be named SY10x, will
provide more than 28 MW of power capacity when built. At full build
the two xScale facilities will offer a combined power capacity of
more than 55 MW.
- In Asia-Pacific, Equinix has
also established joint ventures to build xScale data centers in
Seoul, Osaka and Tokyo. Including Sydney, Equinix plans to build ten xScale data
centers in the region, delivering approximately 240 MW of power
capacity when completed.
- Equinix is a leader in data center sustainability and is
greening the supply chains of its customers. It is the first data
center operator to commit to reaching climate-neutral by 2030
globally, backed by science-based targets and a sustainability
innovation agenda.
- The company'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. In 2021, Equinix
achieved over 95% renewable energy coverage for its global
portfolio.
- In Australia, Equinix,
together with HSBC Bank, Nike Australia, Goldman Sachs and Hennes
& Mauritz (H&M), has received approval from the Australian
Competition and Consumer Commission (ACCC) for joint renewable
energy purchasing.
- PGIM Real Estate owns 80% equity interest in the Australian
joint venture, with Equinix owning the remaining 20%. Equinix will
be responsible for the operation of the hyperscale data
centers.
Quotes
- Morgan Laughlin, Global Head
of Data Center Investments, PGIM Real Estate:
"Since
2013, PGIM Real Estate has been investing in the vibrant and
growing data center sector and we are now delighted to be opening
our first hyperscale data center in Australia in partnership with Equinix. PGIM
Real Estate is projecting to continue expanding its investments in
the global digital infrastructure sector, and we view our
co-investment relationship with Equinix as an extremely important
component of that strategic effort. In line with PGIM Real
Estate's strong commitment to sustainable building practices and
reducing global carbon emissions, we are seeking opportunities to
both use renewable energy at our assets whilst also to grow our
investments in the renewable energy sector in tandem with the
expanding focus on data centers."
- Guy Danskine, Managing
Director, Equinix Australia:
"To address the increasing
demand for cloud and digital infrastructure, the opening of our
first xScale data center in Australia in tandem with the continued
expansion of our International Business Exchange data center
capacity across the country ensure more and more organizations can
implement their digital-first strategies. This infrastructure
enables our customers to scale their operations, deliver
exceptional customer experiences and unlock the value of artificial
intelligence, machine learning, 5G and other emerging
technologies."
Additional Resources
- Powering Hyperscale Growth in Asia-Pacific for New Digital Opportunities
[blog]
- Hyperscale Data Center Expansion Goes into Hyperdrive
[blog]
- Equinix Sustainability Report Highlights 2021 [website]
- Equinix and PGIM Real Estate Enter into a US$575 Million JV to Extend Hyperscale Data
Center Program into Australia
[press release]
- Equinix and GIC to Add $3.9B to
Expand xScale Data Center Program [press release]
About Equinix
Equinix, Inc. (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.
About PGIM Real Estate
As one of the largest real
estate managers in the world with US$209.3
billion in gross assets under management and
administration1, PGIM Real Estate strives to deliver
exceptional outcomes for investors and borrowers through a range of
real estate equity and debt solutions across the risk-return
spectrum. PGIM Real Estate is a business of PGIM, the US$1.4 trillion global asset management business
of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate's rigorous risk management, seamless execution,
and extensive industry insights are backed by a 50-year legacy of
investing in commercial real estate, a 140-year history of real
estate financing2, and the deep local expertise of
professionals in 32 cities globally. Through its investment,
financing, asset management, and talent management approach, PGIM
Real Estate engages in practices that ignite positive environmental
and social impact, while pursuing activities that strengthen
communities around the world. For more information visit
pgimrealestate.com.
1 As of 31 Dec. 2021,
AUM reflected as gross. Net AUM is US$137.9
billion and AUA is US$45.9
billion.
2 Includes legacy lending through PGIM's parent company,
Prudential Financial, Inc.
*Prudential Financial, Inc. (PFI) of the United States is not affiliated in any
manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance
Company, a subsidiary of M&G plc, incorporated in the
United Kingdom. For more
information please visit news.prudential.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
differences include, but are not limited to, risks related to our
joint venture with PGIM Real Estate including the risk that the
expected benefits of the joint venture will not occur; the
challenges of operating and managing data centers, including xScale
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; competition
from existing and new competitors; the loss or decline in business
from key hyperscale companies; disruption from the joint ventures
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.
1
https://www.globaldata.com/media/technology/cloud-computing-spending-australia-reach-us14-1bn-2025-forecasts-globaldata/
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SOURCE Equinix, Inc.