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Press Release -- October 18th, 2022
Source: Equinix

Businesses Expanded More in the Last 5 Quarters Than in the Past 5 Years, with London Largest EMEA Digital Hub

LONDON, UK — October 18, 2022 — Current supply chain constraints and geopolitical and economic instabilities are not slowing the pace of digital infrastructure investment for the most connected companies, according to a new report.

The latest Global Interconnection Index (GXI) 2023, an annual market study published by Equinix, found that globally the most ecosystem-connected businesses—those directly interconnecting with partners to provide their own digital services—have expanded their digital operations more in the past five quarters than in the previous five years. On average, organisations around the world are connecting to three times as many business ecosystem partners and metros, consuming more than twice the amount of interconnection bandwidth.1

As businesses reinvent themselves in the aftermath of the global pandemic, ecosystem density has become a catalyst for digital innovation, which continues to fuel the growth of interconnection bandwidth. According to GXI 2023, global interconnection bandwidth is forecast to reach 27,762+ terabits per second (Tbps) by 2025, representing a five-year compound annual growth rate (CAGR) of 40%. This is equivalent to 110 zettabytes of data exchanged annually, or enough bandwidth to support over 50 million autonomous cars each exchanging over 2,000 terabytes (TB) of data per year. This forecasted global growth shows how organisations are rethinking their business to implement future-proof infrastructure on technology platforms.

EMEA contributes 25% of the global interconnection bandwidth forecast, predicted to grow at a rate (CAGR) of 40% by 2025, reaching 6,972+ Tbps, equivalent to 28 zettabytes of data exchanged annually. EMEA is leading the way in digital infrastructure deployment at 20-30% larger than any other region globally.

Within EMEA, London is the fastest growing core interconnection hub, with more than two times the capacity of any other location in the region. Led by financial services and network provisions, the city’s digital capacity is expected to increase by (CAGR) 43% by 2025 (Amsterdam 39%, Frankfurt 38%, and Paris 37%).

“In today’s dynamic setting, every business is becoming a digital provider, which requires a new type of digital infrastructure built sustainably around leveraging ecosystems to deliver seamless digital experiences. Those with a digital-first strategy in place, investing in a robust, future-looking business model and interconnecting to rich ecosystems, are prepared to scale, adapt and thrive,” said Steve Madden, Vice President of Digital Transformation & Segmentation at Equinix.

Additional Insights from GXI 2023

  • Digital growth continues: While the overall global growth rate is predicted to be (CAGR) 40% by 2025, every region and major metro worldwide is expected to increase its Interconnection bandwidth by at least (CAGR) 35% within the same period.
  • London leads EMEA: The UK capital is the biggest metro interconnection hub in EMEA for Cloud & IT Services, Wholesale & Retail, and Healthcare & Life Sciences. The city also leads the region in Banking & Insurance, Securities & Trading, Business & Professional Services,  Energy & Utilities, Industrial Services, and Consumer Services. 
  • The move to the edge is accelerating: Both enterprises and service providers are forecast to interconnect to edge infrastructure 20% faster than the core globally.
  • The expansion of multicloud: 85% of global companies are expected to expand multicloud access across several regions by 2025.
  • Businesses are becoming digital providers: GXI 2023 predicts that 90% of Fortune 500 companies will become digital providers, both selling and consuming digital services, by 2025.
  • The sustainable road to digitally thrive: All industries are harnessing digital to accelerate ESG objectives, with 65% of global IT decision-makers (78% in the UK)  saying they will only work with IT partners who meet key carbon reduction targets.2 GXI 2023 forecasts the Energy & Utility sector will lead the digital growth rate by 2025 as all organisations explore a sustainable approach to build and expand their digital presence.

Russell Poole, Managing Director, UK at Equinix, said, “The latest GXI reveals that despite supply chain constraints, and ongoing geopolitical and economic instabilities, organisations continue to prioritise a digital-first strategy. Digital leaders in the UK recognise the value in creating agile IT infrastructures interconnected to their entire digital ecosystems to ensure prime performance, accelerate their Environmental, Social and Governance objectives, and develop business opportunities on a global scale. London maintains its position as a leading strategic digital business hub for enterprises looking to compete across international markets. The city is a long-established financial centre of the world and also leads EMEA in other critical growth sectors, including Cloud & IT Services, Banking & Insurance, and Healthcare & Life Sciences. Despite ongoing market uncertainties, there are many reasons to be optimistic about digital transformation and technology investment in the UK.”

Industry Perspective on the Global Interconnection Index

  • Steve White, Program Vice President, Channels & Alliances, IDC
    “As companies increasingly adopt digital-first strategies and look for new ways to drive differentiation, the ecosystem plays an even more critical role. Organisations are relying on ecosystems and digital infrastructure as the foundation to sustainably scale and deliver business value. In order to achieve these business outcomes, companies are interconnecting to customers, partners and vendors to accelerate collaboration and co-creation, as well as meet sustainability commitments.”

Additional Resources

About Equinix
Equinix (NASDAQ:EQIX, news, filings) is the world’s digital infrastructure company™. Digital leaders harness Equinix’s trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organisations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

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, risks to our business and operating results related to the COVID-19 pandemic; the current inflationary environment; foreign currency exchange rate fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX® and xScale® data centres and developing, deploying and delivering Equinix products and solutions; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centres; 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; risks related to our taxation as a REIT and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming Equinix 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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1 Interconnection bandwidth is the measure of private connectivity for the transfer of data between organizations.
2 Equinix 2022 Global Tech Trends Survey: The accelerated evolution of digital—a critical time for transformation

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