Equinix and GIC form $1bn data centre joint venture in Japan
April 24, 2020 – Data centre company Equinix and Singapore’s sovereign wealth fund GIC have formed a joint venture, worth more than $1bn, to build hyperscale data centres in Japan.
The initial joint venture, in the form of a limited liability partnership, will develop and operate three xScale data centres including one in Osaka and two in Tokyo.
In addition to providing approximately 138MW of power capacity to the Osaka and Tokyo, the three facilities will allow hyperscale companies to add core deployments to their existing access point footprints at Equinix.
This provides users with a direct interconnection to Equinix’s set of ecosystems, enabling connectivity for customers and strategic business partners.
Under the terms of the agreement, the joint venture will be 80% owned by GIC while Equinix will own the remaining 20% stake.
The joint venture, subject to receiving regulatory approval and other closing conditions, is planned to be closed in the second half of 2020.
Equinix president and CEO Charles Meyers said: “Hybrid and multicloud have emerged as the clear IT architecture of choice, and Equinix is continuing its efforts to satisfy both the interconnection and core workload needs of the top hyperscale and cloud companies powering this infrastructure.
“Following our successful partnership with GIC on the initial xScale data centre 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.”