Equinix Announces USD 15 Billion Joint Venture to Expand xScale Data Centers

Equinix's New Joint Venture to Accelerate xScale Data Center Growth, Targeting AI and Cloud Demands.

Highlights

  • Equinix announces a USD 15 billion joint venture with GIC and CPP Investments to expand its xScale data center portfolio.
  • The venture will add over 1.5 GW of new capacity to serve hyperscale customers like cloud and AI companies.
  • Equinix retains 25 percent equity, while GIC and CPP Investments each hold 37.5 percent.

Follow Us

Equinix Announces USD 15 Billion Joint Venture to Expand xScale Data Centers
Data centre company Equinix has signed a joint venture (JV) agreement with GIC and the Canada Pension Plan Investment Board (CPP Investments) to raise over USD 15 billion in capital. The JV aims to significantly expand Equinix's xScale data center portfolio, which caters to hyperscale cloud and artificial intelligence (AI) companies. "At full buildout, this new JV will nearly triple the investment capital of the Equinix xScale program and meeting the increasing need for data centres driven by increasing artificial intelligence (AI) and cloud growth," Equinix said this week.

Also Read: Adani Group Accelerates USD 4 Billion Investment in Data Centers: Report




Boosting Hyperscale Capacity in US

With the capital raised through the JV, Equinix expects the JV to purchase land to build new state-of-the-art xScale facilities on multiple greater-than-100-megawatt (MW) campuses in the US, eventually adding more than 1.5 gigawatts (GW) of new capacity for hyperscale customers.

"As the world's leading companies build out their infrastructure to support key workloads such as artificial intelligence, they require the combination of large-scale data center footprints optimized for AI training and interconnection nodes for the most efficient inferencing. Our xScale and IBX offerings are uniquely positioned to address this business need, enabling companies to realise the powerful potential of AI," said Equinix.

Under the agreement, Equinix will hold a 25 percent equity stake, while GIC and CPP Investments will each control 37.5 percent. Each party has made equity commitments, and the joint venture also expects to take on debt to raise the total pool of investable capital to more than USD 15 billion over time, the official release said.

Growing AI and Cloud Demands

Equinix's existing hyperscale joint venture portfolio in Europe, Asia-Pacific and the Americas has a committed investment of over USD 8 billion, which is expected to result in greater than 725 MW of power capacity across more than 35 facilities at full buildout.

Also Read: Telehouse Expands Data Center Capacity in London Docklands

Sustainability

All new xScale data centers will be built to high energy-efficiency standards and receive LEED certification or equivalent regional certifications. The joint venture is expected to formally launch after receiving all of the required regulatory approvals which are expected to be received in the fourth quarter of 2024.

Reported By

Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

Recent Comments

. :

Send ACT VOLTE to 53733 volte gets activated in a day

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

rahul_yadav :

There might be some issue with VoLTE activation with your no. I have 3 Bsnl sim in my Family in…

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

Sujata :

And here I'm getting bsnl LTE 2100 from a tower 7.3 km away. I double checked the distance from tarangsanchar…

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

TheAndroidFreak :

What's the use of that? Total of 40000 sites with 700Mhz/2100Mhz LTE. It's not enough for now. They should have…

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

Riju vv :

It is not 1L sites. It is 1.19L sites. There are two separate deployment projects in progress.The first is a…

BSNL Outshines Jio, Airtel and Vi in August in Subscriber…

Load More
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments