Equinix Forms $15 Billion Joint Venture to Expand Data Center Infrastructure for AI and Cloud Growth

Equinix Turbocharges AI And Cloud Growth With $15B Joint Venture: Expanding xScale Data Centers Worldwide - Equinix (NASDAQ:EQIX)

New JV to boost Equinix's U.S. data center footprint with over 1.5GW of power for AI and cloud infrastructure. Equinix, Inc. EQIX shares are trading lower on Thursday. On Tuesday, the company disclosed a joint venture with GIC and Canada Pension Plan Investment Board (CPP Investments). All parties have made equity commitments, and the JV plans to raise more than $15 billion in investable capital through equity and debt. As per the terms, CPP Investments and GIC will each hold a 37.5% equity stake in the joint venture, while Equinix will own 25%. Equinix's current hyperscale joint venture portfolio in Europe, Asia-Pacific, and the Americas has over $8 billion in committed investment. When fully built out, it aims to deliver more than 725 MW of power capacity across 35+ facilities. The JV will accelerate the expansion of Equinix's xScale data center portfolio, which supports hyperscale companies in enhancing their core deployments at Equinix's IBX data centers. Once fully realized, this new JV will nearly triple the investment capital of the xScale program, driven by the growing demand for AI and cloud services. Also Read: Rezolve AI Shares Surge On Microsoft Partnership Announcement: What You Need To Know Equinix expects the JV to acquire land and develop new xScale facilities on several 100+ MW campuses in the U.S., adding over 1.5 gigawatts of capacity for hyperscale customers. The joint venture's closing, pending regulatory approvals, is expected by the fourth quarter of 2024. Adaire Fox-Martin, CEO and President, Equinix stated, "As the world's leading companies build out their infrastructure to support key workloads such as artificial intelligence, they require the combination of large-scale data center footprints optimized for AI training and interconnection nodes for the most efficient inferencing." "Our xScale and IBX offerings are uniquely positioned to address this business need, enabling companies to realize the powerful potential of AI." Investors can gain exposure to the stock via Pacer Data & Infrastructure Real Estate ETF SRVR and Elevation Series Trust SRH REIT Covered Call ETF SRHR. Price Action: EQIX shares are down 0.98% at $877.92 at the last check Thursday. Image via Shutterstock Read Next: Benzinga's 'Stock Whisper' Index: 5 Stocks Investors Secretly Monitor But Don't Talk About Yet This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Equinix signs $15 bln joint venture to build U.S. data center infrastructure

Oct 1 (Reuters) - Data center firm Equinix (EQIX.O), opens new tab is forming a joint venture with Singapore's sovereign wealth fund GIC and Canada Pension Plan Investment Board with goals to raise more than $15 billion in capital, the company said on Tuesday. Equinix and its partners will use the capital to expand the U.S. footprint of "hyperscale" data centers, which are the largest in the industry, offering massive networking capacity and typically consuming as much power as a big city. Advertisement · Scroll to continue WHY IT'S IMPORTANT The announcement comes at a time when companies across industries are racing to deploy artificial intelligence technologies in their operations, fueling demand for the immense computing power and storage provided by data centers. Large data centers, such as the ones Equinix is looking to scale, are typically used by hyperscalers, which include the world's biggest technology companies such as Amazon (AMZN.O), opens new tab, Microsoft (MSFT.O), opens new tab and Alphabet's (GOOGL.O), opens new tab Google. Advertisement · Scroll to continue The joint venture will nearly triple the investment in Equinix's hyperscale center program, purchasing land for new facilities and adding over 1.5 gigawatts of new capacity over time. BY THE NUMBERS Canada Pension Plan Investment Board, or CPP Investments, and GIC will each control a 37.5% equity interest in the JV, while Equinix will own 25%, Equinix said. The JV will also take on debt to eventually raise the total investable capital to more than $15 billion. THE CONTEXT Equinix has enjoyed strong growth in recent quarters powered by demand for its data centers, with the company raising its annual core earnings forecast in August. It has also been eyeing expansion in the high-growth potential region of Southeast Asia, acquiring three data centers in the Philippines earlier this year. The company already has a partnership with Singapore's GIC for hyperscale projects across regions. Reporting by Deborah Sophia in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab

Equinix signs $15 billion joint venture to build U.S. data center infrastructure

(Reuters) - Data center firm Equinix is forming a joint venture with Singapore's sovereign wealth fund GIC and Canada Pension Plan Investment Board with goals to raise more than $15 billion in capital, the company said on Tuesday. Equinix and its partners will use the capital to expand the U.S. footprint of "hyperscale" data centers, which are the largest in the industry, offering massive networking capacity and typically consuming as much power as a big city. WHY IT'S IMPORTANT The announcement comes at a time when companies across industries are racing to deploy artificial intelligence technologies in their operations, fueling demand for the immense computing power and storage provided by data centers. Large data centers, such as the ones Equinix is looking to scale, are typically used by hyperscalers, which include the world's biggest technology companies such as Amazon, Microsoft and Alphabet's Google. The joint venture will nearly triple the investment in Equinix's hyperscale center program, purchasing land for new facilities and adding over 1.5 gigawatts of new capacity over time. BY THE NUMBERS Canada Pension Plan Investment Board, or CPP Investments, and GIC will each control a 37.5% equity interest in the JV, while Equinix will own 25%, Equinix said. The JV will also take on debt to eventually raise the total investable capital to more than $15 billion. THE CONTEXT Equinix has enjoyed strong growth in recent quarters powered by demand for its data centers, with the company raising its annual core earnings forecast in August. It has also been eyeing expansion in the high-growth potential region of Southeast Asia, acquiring three data centers in the Philippines earlier this year. The company already has a partnership with Singapore's GIC for hyperscale projects across regions. (Reporting by Deborah Sophia in Bengaluru; Editing by Vijay Kishore)

Equinix Announces USD 15 Billion Joint Venture to Expand xScale Data Centers

Equinix retains 25 percent equity, while GIC and CPP Investments each hold 37.5 percent. Data centre company Equinix has signed a joint venture (JV) agreement with GIC and the Canada Pension Plan Investment Board (CPP Investments) to raise over USD 15 billion in capital. The JV aims to significantly expand Equinix's xScale data center portfolio, which caters to hyperscale cloud and artificial intelligence (AI) companies. "At full buildout, this new JV will nearly triple the investment capital of the Equinix xScale program and meeting the increasing need for data centres driven by increasing artificial intelligence (AI) and cloud growth," Equinix said this week. Also Read: Adani Group Accelerates USD 4 Billion Investment in Data Centers: Report With the capital raised through the JV, Equinix expects the JV to purchase land to build new state-of-the-art xScale facilities on multiple greater-than-100-megawatt (MW) campuses in the US, eventually adding more than 1.5 gigawatts (GW) of new capacity for hyperscale customers. "As the world's leading companies build out their infrastructure to support key workloads such as artificial intelligence, they require the combination of large-scale data center footprints optimized for AI training and interconnection nodes for the most efficient inferencing. Our xScale and IBX offerings are uniquely positioned to address this business need, enabling companies to realise the powerful potential of AI," said Equinix. Under the agreement, Equinix will hold a 25 percent equity stake, while GIC and CPP Investments will each control 37.5 percent. Each party has made equity commitments, and the joint venture also expects to take on debt to raise the total pool of investable capital to more than USD 15 billion over time, the official release said. Equinix's existing hyperscale joint venture portfolio in Europe, Asia-Pacific and the Americas has a committed investment of over USD 8 billion, which is expected to result in greater than 725 MW of power capacity across more than 35 facilities at full buildout. Also Read: Telehouse Expands Data Center Capacity in London Docklands All new xScale data centers will be built to high energy-efficiency standards and receive LEED certification or equivalent regional certifications. The joint venture is expected to formally launch after receiving all of the required regulatory approvals which are expected to be received in the fourth quarter of 2024.