Equinix Strengthens its Foothold in China with New Shanghai Data Center
Fifth Shanghai Data Center Meets Strong Demand for Premium Data Center Services in China
HONG KONG--(BUSINESS WIRE)-- Equinix (EQIX), Inc. (NASDAQ:EQIX), the global interconnection and data center company, today announced the launch of its newest data center in Shanghai (SH5) to address the strong demand for premium data center services in China from global customers looking to expand in the market. The launch further strengthens Equinixs footprint in Asia-Pacific and demonstrates its long-term commitment to data center development in China.
Following the $230.5 million acquisition of Asia Tone in July 2012, Equinix gained a total of six data centers and one disaster recovery center located across Hong Kong, Shanghai and Singapore, including SH5. The first phase of SH5 will provide 200 cabinet equivalents, expanding to 900 with a gross area of 80,000 square feet when all three phases of SH5 are completed. With its experience serving multinational customers worldwide, Equinix is uniquely positioned to provide the same high-performance premium colocation services in China that its customers have come to expect.
Our expansion in China is a strategic move to meet strong demand for premium data center services from our customers around the globe. China is one of the fastest growing markets in the Asia-Pacific region and a priority market for many multinational companies, said Alex Tam, managing director, Equinix Greater China. In addition, the PRC governments twelfth, five-year plan announced in 2011 encouraged enterprises to adopt new technologies, such as cloud computing technology. This will inevitably result in tremendous demand in the market for data center services that deliver high-performance and availability. As a leading global data center service provider, Equinix will continue expanding Platform Equinix" to support our customers business needs with our global data center footprint.
Research and consulting firm Frost & Sullivan expects the data center services market in China to see a compound annual growth rate (CAGR) of 13.9% from 2009 to 20161. Chinas data center capacity is expected to reach 1.86 million square meters by 2016, growing at an 11.3% CAGR from 2011 through 2016.
With Shanghai expected to be the global financial center by 2020, the market requires a reliable data center service provider with international experience to provide a highly secure, available and robust data center service. With established financial ecosystems in major financial centers around the world, Equinix is able to support mission-critical financial services applications to ensure business continuity, added Alex.
The SH5 data center offers premium data center services including colocation and Smart Hands TM services. With a team of highly trained and experienced data center technicians, Equinix will provide its customers with 24x7 support and installation assistance.
In addition to the recent acquisition of Asia Tone, Equinix also announced the completion of the second phase of its second Hong Kong data center, taking the total capacity at HK2 to 1,450 cabinets.
Equinix, Inc., connects more than 4,000 companies directly to their customers and partners inside the worlds most networked data centers. Today, businesses leverage the Equinix interconnection platform in 38 strategic markets across the Americas, EMEA and Asia-Pacific. 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 Equinixs filings with the Securities and Exchange Commission. In particular, see Equinixs 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.
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1Frost & Sullivan: Asia Pacific Data Center Services Market Update 2010, issued in November 2011
Lorraine Little-Bigelow, + (852) 2970 7742
Kendrick Leung, + (852) 2970 7711
Emma Jenkins or Annie Ho, + (852) 3944 5000
Source: Equinix, Inc.Copyright Business Wire 2012