The US$63 million (HK$491M) investment is a response to demand from the financial services and cloud services sectors
HONG KONG — November 9, 2011 — Equinix Inc. (NASDAQ:EQIX, news, filings), a provider of global data center services, today announced the opening of the first phase of its second International Business Exchange™ (IBX®) data center in Hong Kong. The new IBX data center, called HK2, was built to meet the increasing demand for premium colocation and interconnection data center services, particularly from financial services organizations and cloud service providers operating in the city. HK2 represents an investment of US$63 million and extends Platform Equinix™ to a total of 99 data centers, across 38 strategic markets around the world.
Located near the existing HK1 IBX data center in the western part of the New Territories region, the first phase of HK2, an investment of US$20 million (HK$156M), will provide 450 cabinet equivalents, expanding to 1,450 at full build-out. With direct fiber connection to HK1, the HK2 IBX data center builds on Equinix’s existing rich network density, providing customers with a wide range of connectivity options. Major networks operating within HK2 include PCCW and Wharf T&T.
“Commercial growth and the continuation of Hong Kong’s dominance as a financial hub in Asia are key drivers of demand for data center services in the local market,” said Alex Tam, managing director, Equinix Greater China. “Data centers are an essential part of the city’s infrastructure and the opening of HK2 ensures the supply of data center availability needed to support the sustainable growth of traditional pillar industries such as financial services and trading.”
The HK2 facility will also meet an increase in demand for data center capacity driven by the appetite for cloud computing in the market. With its world leading broadband penetration and excellent international connectivity, coupled with good policy governance, Hong Kong is rapidly becoming a desired location for cloud service providers. HK2 will offer cloud service providers access to multiple networks, which is critical to enhance application performance and ensure redundancy. BrightHost, a leading supplier of high-capacity cloud infrastructure and web hosting solutions, deployed its cloud offering within Equinix’s HK1 data center earlier this year to meet its blue-chip customers’ requirement for a presence in Asia.
In addition to having access to a carrier neutral, dense network environment, businesses deployed in HK2 will be able to enjoy close proximity and access to a vast ecosystem of partners and potential customers, enabling them to maximize business opportunities within the data center.
The HK2 IBX data center offers a variety of premium data center services including colocation, interconnection and peering and direct cross connect between networks. Customers will also have access to the Equinix Marketplace, giving them the ability to discover new partners and locate services where they are required.
“Hong Kong is a key location for regional and global businesses that are keen to expand operations and build business ecosystems in this important financial market. Our global reach also means that customers looking to enter new markets can do so confidently, knowing they will receive the same level of service. Growing our global platform allows us to meet customers’ on going needs for premium, well-connected, data center services,” added Tam.
HK2 is the third new IBX data center to be opened by Equinix in the Asia-Pacific region this year as part of its plans to expand Platform Equinix in the region. Earlier this year the company opened IBX data centres in Sydney (SY3) and Tokyo (TY3) – the third Equinix IBX data centres in both cities.
Equinix, Inc. (NASDAQ: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. Platform Equinix connects more than 4,000 enterprises, cloud, digital content and financial companies including more than 680 network service providers to help them grow their businesses, improve application performance and protect their vital digital assets. Equinix operates in 38 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. http://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 Equinix’s filings with the Securities and Exchange Commission. In particular, see Equinix’s 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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