The US$23 million investment to expand HK3 meets growing demand for data center and interconnection services in Hong Kong
HONG KONG — June 25, 2014 — Equinix, a global communications solutions provider, today announced the opening of the second phase of its third International Business Exchange™ (IBX®) data center in Hong Kong (HK3). The additional investment of US$23 million provides space for an additional 650 cabinets, giving Equinix control of the entire building. The completed build now has capacity for 2,700 cabinets, meeting the high demand from enterprises looking to take full advantage of Equinix’s financial services and cloud business ecosystems.
Highlights / Key Facts
- According to a recent Frost and Sullivan report, “Hong Kong’s business-friendly and free-trade environment has drawn multinational corporations (MNCs) to set up their regional headquarters in the country, bringing in numerous investments and job opportunities and creating demand for data center services. Hong Kong’s data center market is expected to grow at a CAGR of 15.3 percent to US$802.6 million by 2019.”
- With over 1,500 companies listed on the Hong Kong Stock Exchange (HKEx) with a market capitalization of HK$21,509.4 billion , Hong Kong is an important regional hub for many financial services firms. Additionally, Hong Kong’s geographic and political position to mainland China allows it to act as a gateway for global companies that seek to break into the China market.
- More than 100 financial services customers in Hong Kong, including Fixnetix, ABN Amro Clearing and Bloomberg, can connect to an established ecosystem of existing and potential customers, including exchanges and trading platforms, top market data vendors and hundreds of buy-side and sell-side firms. Companies deployed in HK3-II can also connect to the Equinix Cloud Exchange, launching on July 1, 2014, that will enable enterprises to build highly flexible hybrid cloud solutions with simple, scalable and direct access to multiple cloud services.
- The expansion of Equinix's footprint in Hong Kong is the latest in a series of expansions across Asia-Pacific. The recent completion of the second phase of HK3 is the latest in a series of expansions across Asia-Pacific, which includes a third phase expansion of SY3 in Sydney, new data centers in Tokyo, Osaka, Jakarta and Singapore, and Equinix’s first facility in Melbourne.
- HK3-II has direct fiber connectivity to Equinix’s other IBX data centers in the city via the Equinix Metro Connect, a service that provides reliable network connectivity, allowing customers in HK3 to easily expand their businesses within the Equinix platform. Customers will have access to over 975 domestic and international network providers, including PCCW Global, Tata Communications, Chunghwa Telecom and Wharf T&T.
- Alex Tam, managing director, Equinix Hong Kong:"With Hong Kong continuing to grow as a regional hub for multinational companies, demand from enterprises and financial services firms for interconnected, data center services continues to rise. The completion of HK3 will meet this demand, as customers have the opportunity to further accelerate their digital supply chain, boosting speed of transactions, trading and application performance."
- Samuel Lee, president, Equinix Asia Pacific:,"Hong Kong is a strategic market for Equinix. Our continued dedication to the region with the completion of HK3-II, as well as the launch of Equinix Performance Hub in June and the forthcoming Equinix Cloud Exchange in July will further provide enterprises the solutions they need to maximize network performance and accelerate business growth."
- Equinix Extends Performance Hub Solution to Asia-Pacific [press release]
- What Makes Equinix Hong Kong Your Most Dependable Data Center Choice? [infographic]
- Equinix Hong Kong Data Centers [website]
Equinix, Inc. (NASDAQ:EQIX, news, filings), connects more than 4,500 companies directly to their customers and partners inside the world’s most networked data centers. Today, businesses leverage the Equinix interconnection platform in 32 strategic markets across the Americas, EMEA and Asia-Pacific. www.equinix.com.
Equinix and IBX are registered trademarks of Equinix, Inc. International Business Exchange is a trademark of Equinix, Inc
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.