Equinix, Inc., a global interconnection and data center company, and GIC, Singapore’s sovereign wealth fund, have entered into a partnership deal to form a joint venture to develop and operate hyperscale data centers in Japan.
Announced on Tuesday, the initial valuation of the limited liability partnership will be more than $1 billion.
Under the joint venture, three facilities will be managed initially – one in Osaka and two in Tokyo. These will serve the unique core workload deployment needs of a targeted group of hyperscale companies, the announcement detailed.
Commenting on this partnership, Charles Meyers, president and CEO of Equinix, said: “Following our successful partnership with GIC on the initial xScale data center joint venture in Europe announced last year, we are now continuing our partnership with the formation of a new joint venture in Japan. The new facilities under this JV will allow our hyperscale customers to streamline their continued growth, while strengthening Equinix’s leadership position in the cloud ecosystem.”
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Taping a lucrative market with a high demand for such services
With these xScale data centers, hyperscale companies can add core deployments to their existing access point footprints at Equinix.
These will provide clients access to Equinix’s comprehensive suite of interconnection and edge services and will be designed to meet requirements of core hyperscale workload deployments.
“Japan is a strategic country for regional hyperscale expansion, and the demand for data center capacity in the Tokyo and Osaka markets has outstripped supply,” Jabez Tan, head of research at Structure Research, said.
“Through this new joint venture, Equinix and GIC will be a top provider of new data center capacity for the world’s largest hyperscale companies seeking to expand in these two strategic markets – leveraging Equinix for both their core workload and interconnection requirements.”
Last week, Equinix revealed that it has secured $750 million in funding through a credit agreement to enhance its overall liquidity.