Equinix Expands to Indonesia with $74M Data Center Investment
Strategically located near the largest internet exchanges to meet the country's growing digital needs
JAKARTA, Indonesia and REDWOOD CITY, Calif., Oct. 6, 2022 /PRNewswire/ -- To support increasing demand for the digital services essential to powering today's businesses, Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company™, today announced its expansion to Indonesia with plans for an approximately $74 million International Business Exchange™ (IBX®) data center in the heart of Jakarta. Through this expansion, Equinix will enable Indonesian businesses, as well as multinationals with a presence in Indonesia, to leverage its trusted platform to bring together and interconnect the foundational infrastructure to power their businesses.
Driven by rapid business digitalization and a substantial digital-savvy population, Indonesia has emerged as Southeast Asia's largest digital economy in value,1 and is expected to be a key hub of interconnection in the region. With major cloud service providers, such as Google Cloud, Amazon Web Services (AWS), Microsoft Azure and Alibaba Cloud, launching cloud regions in Indonesia, the country is forecast to become the second largest public cloud market in Southeast Asia.2 These trends collectively raise the need for increased digital services and data center services capacity in Indonesia.
Jeremy Deutsch, President, Asia-Pacific, Equinix said: "Our IBX data center in Jakarta will add a strategically important, high-growth market to Equinix's extensive network of interconnected data centers across the world. Having a presence in Indonesia allows Equinix to provide digital infrastructure that enables local businesses to tap growth opportunities abroad and support global organizations looking to access the expanding Indonesian digital economy. We look forward to working closely with local authorities, network providers and the broader industry ecosystem players to help unleash Indonesia's digital potential."
Highlights / Key Facts
- The eight-story facility is scheduled to open by the second half of 2024, expected to provide more than 1,600 cabinets and more than 5,300 square meters of colocation space when fully built. Located in Jakarta's Central Business District and in close proximity to major internet exchanges, the new IBX data center will provide Indonesian businesses and foreign businesses operating in Indonesia with the digital infrastructure and vibrant ecosystems for optimal performance.
- The facility will incorporate sustainability into its design, leveraging innovative technologies such as cool array to support economic and environmental goals for organizations in Indonesia. This is part of Equinix's Future First strategy that underscores the company's commitment to green the digital economy.
- Equinix's expansion to Jakarta is aligned with the Indonesian government's digital transformation initiatives, boosting the country's digital infrastructure objectives according to goals set out in the Indonesia Digital Roadmap 2021–2024.3
- Platform Equinix® currently spans 32 countries around the world, and this new data center in Jakarta will serve as a business conduit for local and global enterprises, cloud & IT service providers and network service providers.
- Inclusive of this recent announcement, Equinix has 50 major projects that are currently underway across 35 metros in 22 countries, including new data center builds in Dublin, Montréal, New York, Paris and Warsaw. Most recently, Equinix entered Chile and Peru with a total of five IBX data centers, with an enterprise value estimated at approximately $735 million. The company has also completed its acquisition of West African data center and connectivity solutions provider MainOne for an enterprise value of $320 million.
- In Asia-Pacific, Equinix announced an initial investment of over $86 million to build Equinix's third IBX data center in Mumbai and an investment of over $64 million for its first IBX data center in Chennai.
- Today, the global footprint of Platform Equinix spans 248 data centers across 71 metros and 32 countries, providing digital infrastructure for more than 10,000 of the world's leading businesses, including more than 50% of Fortune 500 companies. In Asia-Pacific, Equinix currently has 51 data centers in key metros across Australia, China, Hong Kong, Japan, Korea and Singapore.
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company. Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
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, risks to our business and operating results related to the COVID-19 pandemic; the current inflationary environment; foreign currency exchange rate fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX and xScale® 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; 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 and upcoming 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.
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SOURCE Equinix, Inc.
Released October 6, 2022