Equinix will spend an extra $ 3.9 billion in its xScale data centers for hyperscale cloud providers as part of its joint venture with Singapore’s sovereign wealth fund GIC. Equinix’s xScale data center portfolio is supported by the joint venture.
By supporting the specific core workload deployment needs of hyperscale firms, including the world’s leading cloud service providers, xScale data centers complement Equinix’s worldwide infrastructure of more than 220 IBX data centers.
When closed and built out, the deal will bring the xScale data center portfolio to greater than $6.9 billion across 32 facilities globally. It is expected that the xScale portfolio of 32 facilities will provide more than 600 megawatts (MW) of power capacity when fully built out.
Europe, Asia-Pacific, Americas
After deal closing and buildout, the xScale data center portfolio will span three regions:
- Europe: Dublin (three xScale data centers), Frankfurt (five xScale data centers), Helsinki (one xScale data center), London (two xScale data centers), Madrid (two xScale data centers), Milan (one xScale data center), Paris (four xScale data centers) and Warsaw (one xScale data center)
- Asia-Pacific: Osaka (three xScale data centers) and Tokyo (three xScale data centers)
- Americas: Mexico City (one xScale data center) and São Paulo (three xScale data centers)
Under the terms of the joint venture agreements, GIC will own an 80% equity interest in the future joint ventures and Equinix will own the remaining 20% equity interest.
“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,” said Charles Meyers, CEO of Equinix. “With our xScale program, these hyperscalers can continue to grow at Equinix while in close proximity to an ecosystem of 10,000 customers. The joint venture arrangement of xScale enables these large deployments to be structured in an off-balance sheet model that aims to preserve capital for investment in our traditional retail data center and digital infrastructure business and maintain our strategic and financial flexibility.”