Equinix Boosts Data Center Investment in APAC
Completion of Second Phase of Hong Kong 2 Meets Ongoing Demand for Premium Data Center Services
HONG KONG--(BUSINESS WIRE)-- Equinix, Inc. (NASDAQ:EQIX), a provider of global data center services, today announced the completion of the second phase of its second International Business Exchange™ (IBX®) data center in Hong Kong (HK2) to align with surging market demand from cloud providers and the financial services industry. The additional investment of US$48.9 million underpins Equinix’s long-term commitment to data center development in Hong Kong and the wider APAC region. This expansion brings the total investment amount to US$72 million.
Located in the western part of the New Territories region, the second phase of HK2 adds 1,000 cabinets to the data center, bringing the total capacity to 1,450 cabinets. Together with the completed acquisition of Asia Tone, a Hong Kong-based data center provider, Equinix has significantly expanded its presence in the APAC region, extending Platform Equinix™ to a total of 105 data centers across the globe.
“The data center is now the backbone of any company operating in the digital economy. Companies are either selling digital goods and services or relying heavily on the Internet for employee productivity and other business applications. As a result, we are seeing strong demand in Asia Pacific, making it our fastest growing region,” said Samuel Lee, president, Equinix APAC. “Today’s expansion of HK2, in conjunction with the recent completion of the Asia Tone acquisition, marks a momentous milestone for Equinix, and underscores its dedication to fostering data center development in the region.”
According to research and consulting firm Frost & Sullivan, the financial services, trading and logistics, information technology, telecommunications, and content development and media industries account for more than 84 percent of the total demand for data center space in Hong Kong. Overall the research firm estimates that the demand for data center services in Hong Kong will grow by a compound annual growth rate of 9.8 percent from 2009 to 2015.
“Hong Kong is an important regional hub for multi-national companies. To address the ever-growing demand for data center services in the city, Equinix has continued to expand its data center capacity and services in Hong Kong since entering the market more than twelve years ago. Companies around the globe deploying in Equinix can take advantage of the expanded footprint to develop their businesses in the region quickly and easily. The HK2 IBX data center is a revitalization of an industrial building, which perfectly aligns with the data center initiatives recently announced by Hong Kong SAR Government,” said Alex Tam, managing director, Equinix Greater China.
The HK2 IBX data center offers a wide range of premium data center services including colocation, interconnection and peering and direct cross connect between networks. Companies deployed in HK2 can leverage Equinix’s network-dense and carrier neutral platform to access to a vast ecosystem of partners and potential customers, enabling them to maximize business opportunities within the data center. Customers will also have access to the Equinix Marketplace, giving them the ability to discover new partners and locate services where they are required.
Current customers in Hong Kong include financial services companies like IRESS, as well as cloud service providers such as BrightHost and Carpathia Hosting.
To address the growing demand for data center services in APAC, Equinix also this month announced the expansion of its second IBX data center (SG2) in Singapore. Last year Equinix opened three new IBXs in Hong Kong, Sydney and Tokyo.
Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 900 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. www.equinix.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, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; 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; and other risks described from time to time in Equinix’s filings with the Securities and Exchange Commission. In particular, see Equinix’s recent 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.
Equinix and IBX are registered trademarks of Equinix, Inc. International Business Exchange is a trademark of Equinix, Inc.
Lorraine Little-Bigelow, + (852) 2970 7742
Kendrick Leung, + (852) 2970 7711
Emma Jenkins, + (852) 3944 5000
Annie Ho, + (852) 3944 5000
Source: Equinix, Inc.
Released July 10, 2012