October 22, 2008
Equinix Continues Global Expansion Program with Construction of New Data Centers in London and Singapore
Foster City, CA - October 22, 2008 - Equinix, Inc. (Nasdaq: EQIX), the leading global provider of network-neutral data centers and Internet exchange services, today announced plans to build a new 300,000 square foot data center in London and a new 110,000 square foot data center in Singapore. The expansions come at a time when demand in the London and Singapore markets continues to outpace supply, providing a favorable pricing environment, and as businesses are increasingly challenged to meet the growing power requirements of their IT operations.
The site selected for the London expansion (LD5), located in the suburb of Slough, will augment Equinix's four other centers in the London market. It has the capacity for multiple phases, enabling Equinix to fully build out the site over time as demand warrants. Capital expenditures for the initial phase of the build out are expected to range between $80 million and $90 million, of which $60 million will be spent by the end of 2009.
The new Singapore center (SG2), located in the western region of Singapore, will also be built out in phases, with capital expenditures for the initial phase expected to be approximately $45 million, which will be spent by the end of 2009. It will provide additional capacity to Equinix's existing SG1 center located in the southern region of Singapore.
“Despite the challenges of the current global economy, Tier 1 Research is forecasting continued strong demand in the data center and colocation services market globally, given the supply-demand imbalance that has existed for the last several years in most markets, including London and Singapore,” said Dan Golding, vice president and research director at Tier 1 Research. “In fact, our belief is that downward pressure on the economy favors colocation providers, as companies forego the significant capital expenditures needed to develop their own internal data centers.”
The first phase of the new LD5 center, located in close proximity to the company's existing LD4 Internet Business Exchange (IBX®) data center, is expected to open in Q1 2010. It will provide much needed capacity to the constrained London market, the largest market for Equinix in Europe, enabling the company to keep pace with the growing demand from enterprise and financial services companies in the region. As Equinix's interconnection business continues to grow, including the Equinix Financial eXchange service and the company's partnership with the London Internet Exchange (LINX), the LD5 center will also enable Equinix to meet the long-term expansion needs of its London area customers with a new center that is in close proximity to its existing LD4 center.
The initial phase of the Singapore center is expected to open in Q3 2009. It will provide additional supply to the Singapore market that currently has no significant new data center builds underway and that is expected to remain capacity constrained through 2010. In addition to providing the much needed colocation space, the new center will enable Equinix to continue the strong growth of the company's peering business, as the SG2 center will be located close to one of the largest submarine cable landing points in the region.
Both new centers will feature physical infrastructures consistent with Equinix's industry-leading standards for security, environmental control and power availability. In addition, a portion of the capital expenditures for the first phase of the LD5 center will be used to upgrade the local power infrastructure by approximately 40 megawatts in order to accommodate customers' needs for the new generation of high-power density equipment including blade servers.
“These two new fully funded builds, in addition to our recently announced build in Paris, represent Equinix's longstanding strategy of measured expansion in strategic markets where demand is strong,” said Steve Smith, president and CEO of Equinix. “In London and Singapore, we continue to experience strong growth and anticipate that we will soon reach capacity in these existing centers. These new centers will provide the company with a long-term solution to meet the demand in these markets, as we pursue our flexible expansion model that enables us to build out a property in multiple phases over time.”
The first phase of the LD5 center will accommodate approximately 1,400 cabinet equivalents, and, at full build out, the center will have a total capacity of approximately 5,500 to 6,000 cabinet equivalents. The first phase of the SG2 center will accommodate approximately 700 cabinets, and, at full build out, the center will have a total capacity of approximately 1,700 cabinets.
As previously announced, Equinix will provide an update of its outlook for 2008 and 2009 on its Third Quarter 2008 results call scheduled for later today.
Equinix is the leading global provider of network-neutral data center and interconnection services, offering premium colocation, traffic exchange and outsourced IT infrastructure solutions. Global enterprises, content companies, systems integrators and network service providers look to Equinix Internet Business Exchange (IBX®) centers for world-class reliability and network diversity. Equinix IBX centers serve as critical, core hubs for IP networks and Internet operations worldwide. With 41 IBX centers located in 18 strategic markets across North America, Europe and Asia-Pacific, Equinix enables customers to reliably operate their mission-critical infrastructure on a global basis.
Important information about Equinix is routinely posted on the investor relations page of its website located at www.equinix.com. We encourage you to check Equinix's website regularly for the most up-to-date information.
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.
Equinix and IBX are registered trademarks of Equinix, Inc. Internet Business Exchange is a trademark of Equinix, Inc.