New facility addresses growing need for interconnection and enables companies to advance their digital transformation
REDWOOD CITY, Calif., June 2, 2021 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company™, today announced the ability to serve more enterprise partners and customers with its newest International Business Exchange™ (IBX®) data center in Silicon Valley, located at its Great Oaks campus in San Jose. The $142M facility, named SV11, is expected to open June 30, 2021, and will support the increasing demand from organizations for premium data center services to accelerate business performance and drive their digital transformation agendas.
SV11 is targeting LEED Silver certification with an ultra-low design average annual Power Usage Effectiveness (PUE) of 1.17. SV11 customers can benefit from reductions of their CO2 footprint through Equinix's renewable energy procurement strategy and the use of energy-efficient systems throughout the facility. Additionally, with expansion of the current Bloom Energy fuel cells, the campus is planned for 20 megawatt (MW) of capacity, and will be the first time Equinix will use the system as primary generation with utility electrical grid and generators as backup sources. This continues Equinix's exploration of alternative fuel sources for both energy reliability and sustainability.
"Digital transformation continues to accelerate at an unprecedented rate," said Jon Lin, President, Americas, Equinix. "In fact, 47% of respondents in a recent Equinix survey of enterprise IT decision-makers said they have accelerated their digital transformation plans. SV11 is another example of our commitment to provide our customers with the right places, partners and possibilities for their digital transformations now and in the future."
Equinix data centers in the Silicon Valley region are the business hub for more than 700 customers, and Silicon Valley represents the third-largest colocation metro in the Americas region and ninth globally. With the addition of SV11, Equinix has invested more than $1.25B in the local economy including its Great Oaks campus and has additional land in the area for future expansion, as demand arises. These facilities house rich ecosystems that allow network and content providers, cloud and IT service providers, and enterprise customers to quickly and efficiently exchange critical business data with their customers and partners through interconnection.
According to Stefanie Williams, Senior Research Analyst for 451, part of S&P Global Market Intelligence, "The multi-tenant data center industry in Northern California has continued to see steady demand over the past several years, and this growth will be ongoing for the near future. IT firms of all kinds – from cloud and software to gaming – are driving the demand for connectivity and the ability to be in close proximity to clouds, partners and users. Equinix is expanding its presence in Silicon Valley to meet these potential customer requirements for digital infrastructure, while focusing on designing and operating a facility in line with its internal sustainability objectives."
Interconnection—the ability to privately exchange information between businesses versus over the public internet—is paramount for companies in the Silicon Valley campus. In fact, according to the Global Interconnection Index, a market study published recently by Equinix, the United States is the largest and most advanced region for interconnection bandwidth growth, contributing 41% of all the interconnection bandwidth of the world, and is predicted to grow with a 43% CAGR between 2019 and 2023. Silicon Valley represents one of the top four data center markets in terms of annualized revenue in the U.S. behind North Virginia and the New York/New Jersey markets, and Dallas.1 The metro is predicted grow fastest in the US in terms of interconnection growth, with a 46% CAGR in the same period.
Equinix (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.
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, the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering Equinix products and solutions, unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; a failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; and other risks described from time to time in Equinix 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 Source: 451 Research, part of S&P Global Market Intelligence – Datacenter KnowledgeBase, Q4 2020
SOURCE Equinix, Inc.