Equinix Inc. (Nasdaq: EQIX), a global interconnection and data company, announced on Monday that it is forming a joint venture by entering into a limited liability partnership with Singapore’s sovereign wealth fund, GIC.

The expansion plan involves the injunction of an additional $3.9 billion, which will position the xScale data center’s total portfolio to more than $6.9 billion.

After the closure of the new deal and establishment of the new facilities, Equinix will have data center infrastructure across three regions: Europe, where the infrastructures are hosted in Dublin, Frankfurt, Helsinki, London, Madrid, Milan, Paris and Warsaw; Asia-Pacific, where the infrastructure was built in Osaka and Tokyo; and the Americas, where xScale data centers are based in Mexico City and São Paulo.

At present, Equinix is made up of more than 220 International Business Exchange data centers across 32 facilities.

Killing the Latency

“With our xScale program, these hyperscalers can continue to grow at Equinix while in close proximity to an ecosystem of 10,000 customers. The joint venture arrangement of xScale enables these large deployments to be structured in an off-balance sheet model that aims to preserve capital for investment in our traditional retail data center and digital infrastructure business and maintain our strategic and financial flexibility,” Equinix CEO, Charles Meyers.

Furthermore, the placement of Equinix data centers is crucial as a majority of the financial industry uses its data center infrastructure.

“By building upon the xScale portfolio, Equinix is well-positioned to further accelerate the adoption of hybrid and multi-cloud as the IT architecture of choice for today’s businesses, while meeting hyperscalers’ needs for operational reliability, global reach and interconnectivity to rich ecosystems that are critical to serving their customers worldwide,” said Jabez Tan, Head of Research at Structure Research.