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Equinix, one of the world’s largest data center companies, announced that it will form a $1 billion joint venture with GIC, Singapore’s sovereign wealth fund. The partnership will focus on building xScale data centers in Europe. Instead of targeting the wholesale market, Equinix is developing xScale data centers to handle the demands of of the biggest cloud service providers in the world. Equinix’s clients have already included Alibaba Cloud, Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure, Google Cloud and other hyperscale cloud providers.
Under the agreement, expected to be finalized in the third quarter, GIC will own an 80 percent stake in the joint venture, with Equinix owning the remaining 20 percent. Equinix will also sell its London LD10 and Paris PA8 International Business Exchange (IBX) data centers to the joint venture for new xScale centers. xScale centers will also be built in Amsterdam, Frankfurt and London, bringing the total to six centers that will provide a combined capacity of 155 megawatts once completed.
Equinix says global deployments from hyperscale cloud providers currently exceed about $500 million in annual revenue. The new xScale data centers will be located on or near Equinix’s IBX campuses, to enable providers to handle more customer access points and rapidly-scaling workloads. Equinix currently has more than 200 IBX campuses, covering more than 50 metro areas around the world. xScale data centers will also offer interconnection and edge services to increase connection speeds for cloud service customers and be engineered specifically to meet the needs of hyperscale companies.
In a press statement, Charles Meyers, president and CEO of Equinix, said, “The JV 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 center of a cloud-first world.”
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