REDWOOD CITY, CA., June 13, 2022 /PRNewswire/ — Equinix, Inc. (Nasdaq: EQIX), the global digital infrastructure™ company, and PGIM Real Estate, the real estate investment and finance arm of PGIM, the global asset management business of Prudential Financial*, announced today the opening of the first xScale data center in sydney, named SY9x. This step follows the closing of the US$575 million joint venture between the parties in March 2022.
With the closing of the joint venture in AustraliaEquinix’s global xScale data center portfolio will exceed 8 billion US dollars investment in 36 facilities and expects to deliver over 720 megawatts (MW) of electrical capacity when fully constructed. Including SY9x in sydneyEquinix currently operates nine xScale data centers across all three regions, including FR9x in FrankfurtLD11x and LD13x in LondonOS2x in OsakaPA8x and PA9x in ParisSP5x in São Paulo and TY12x in Tokyo. Eight other xScale versions are under development for approximately 70 MW of additional capacity.
australia cloud computing market is expected to grow by 12.5% to reach US$14.1 billion in 2025, supported by large-scale digital transformation initiatives in the public and private sectors. Additionally, according to the Global Interconnection Index Volume 5 (GXI Vol. 5), market research announced by Equinix, sydney is expected to have an estimated compound annual growth rate (CAGR) of 43% for private enterprise interconnection to cloud and IT providers between 2020 and 2024, which is one of the highest in the world. Asia Pacific Region.
As the first of two data centers to be developed and operated under the joint venture with PGIM Real Estate, SY9x currently provides over 14MW of electrical capacity and will supply over 28MW when fully built to meet demand. growing cloud. platforms and services based on Australia.
By deploying in Equinix xScale data centers, hyperscale enterprises can add basic deployments to their existing access point footprints at Equinix International Business ExchangeMT (IBX®) data centers, enabling their growth on a single platform that can immediately cover 70 global metros and offer direct interconnection to an ecosystem of more than 10,000 customers.
- SY9x is located in Rosehill, next to the Western Sydney CBD in Parramatta. The second xScale facility, which will be called SY10x, will provide over 28 MW of electrical capacity when built. At full construction, the two xScale facilities will provide a combined electrical capacity of over 55 MW.
- In Asia PacificEquinix has also created joint ventures to build xScale data centers in Seoul, Osaka and Tokyo. Including sydneyEquinix plans to build ten xScale data centers in the region, providing approximately 240 MW of power capacity when complete.
- Equinix is a leader in data center sustainability and greening its customers’ supply chains. It is the first data center operator to commit to achieving climate neutrality by 2030 globally, backed by science-based targets and a sustainable innovation agenda.
- The company’s long-term goal of using 100% clean, renewable energy for its global platform has resulted in a significant increase in renewable energy coverage globally. In 2021, Equinix achieved over 95% renewable energy coverage for its global portfolio.
- In AustraliaEquinix, together with HSBC Bank, Nike Australia, Goldman Sachs and Hennes & Mauritz (H&M), has received approval from the Australian Competition and Consumer Commission (ACCC) for the joint purchase of renewable energy.
- PGIM Real Estate owns an 80% stake in the Australian joint venture, with Equinix owning the remaining 20%. Equinix will be responsible for operating the hyperscale data centers.
- Morgan LaughlinGlobal Head of Data Center Investments, PGIM Real Estate:
“Since 2013, PGIM Real Estate has been investing in the dynamic and growing data center industry and we are now delighted to open our first hyperscale data center in Australia in partnership with Equinix. PGIM Real Estate plans to continue to expand its investments around the world digital infrastructure sector, and we view our co-investment relationship with Equinix as an extremely important part of this strategic effort. In line with PGIM Real Estate’s strong commitment to sustainable building practices and reducing global carbon emissions, we are looking for opportunities to both use renewable energy on our assets while increasing our investments in the renewable energy sector. in parallel with the focus on data centers. .”
- Guy DanskineManaging Director, Equinix Australia:
“To meet the growing demand for cloud and digital infrastructure, the opening of our first xScale data center in Australia Along with the continued expansion of our International Business Exchange data center capacity across the country, we are ensuring that more and more organizations can implement their digital-first strategies. This infrastructure enables our customers to scale their operations, deliver exceptional customer experiences, and unlock the value of artificial intelligence, machine learning, 5G, and other emerging technologies.“
Equinix, Inc. (Nasdaq: EQIX) is the world’s digital infrastructure company, enabling digital leaders to operate a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix connects today’s businesses to all the right places, partners and opportunities they need to accelerate their advantage. With Equinix, they can scale with agility, accelerate the launch of digital services, deliver world-class experiences and multiply their value.
About PGIM Immobilier
As one of the largest property managers in the world with US$209.3 billion gross assets under management and administration1, PGIM Real Estate strives to deliver exceptional results to investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a PGIM company, the US$1.4 trillion the global asset management business of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate’s rigorous risk management, transparent execution and deep industry knowledge are backed by a 50-year legacy of commercial real estate investing, a 140-year history of real estate finance2, and the deep local expertise of professionals in 32 cities around the world. Through its approach to investing, financing, asset management and talent management, PGIM Real Estate engages in practices that generate positive environmental and social impact, while pursuing activities that strengthen communities at worldwide. For more information, visit pgimrealestate.com.
1 From Dec 31 2021, AUM reflected as gross. Net AUM is US$137.9 billion and AAU is US$45.9 billion.
2 Includes loans inherited through PGIM’s parent company, Prudential Financial, Inc.
*Prudential Financial, Inc. (PFI) of United States is in no way affiliated with Prudential plc, incorporated into the UK or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in UK. For more information, visit news.prudential.com.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the expectations described in these forward-looking statements. Factors that could cause such differences include, but are not limited to, the risks associated with our joint venture with PGIM Real Estate, including the risk that the anticipated benefits of the joint venture will not materialize; challenges in operating and managing data centers, including xScale data centers, and developing, deploying and delivering Equinix services; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding debt; competition from existing and new competitors; loss or decline in the operations of major large-scale businesses; disruption of joint ventures making it more difficult to conduct business as usual or maintain relationships with customers, employees or suppliers; 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 assumes no obligation to update the forward-looking information contained in this press release.
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