Equinix spends $55m on third data centre in Japan

Equinix spends $55m on third data centre in Japan

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Equinix, Inc. (Nasdaq: EQIX) has announced an initial investment of $55 million to build its third IBX data centre in Osaka, Japan.

The company has named the facility OS3, and said it will enable local and global businesses to connect Platform Equinix and interconnect the foundational infrastructures that power their offerings.

The data centre will offer close proximity to major internet and peering exchanges. The facility is scheduled to open in Q4 2021.

It will also offer low-latency connections to the large Kansai region, which consists of major cities including Osaka, Kyoto and Kobe.

This will allow digital leaders to leverage OS3 to scale and utilise digital infrastructure for optimal performance, according to the company.

“Digitalisation is no longer just an option, but a prerequisite for businesses to succeed. Equinix has always been committed to delivering a single platform, which creates the foundational infrastructure to support customers’ evolving needs for digital infrastructure,” said Jeremy Deutsch, President, Equinix Asia-Pacific.

“Our expansion in Osaka marks another key milestone in our ongoing plans to deliver Platform Equinix to more businesses in the fast-growing Asia-Pacific region.

“With our world-class infrastructure and solutions, we will continue to be the trusted partner of digital leaders by enabling them to seize the opportunity with agility, speed and confidence.”

The first phase of OS3 is expected to provide an initial capacity of 900 cabinets and more than 33,000 sqf of colocation space.

At full buildout, the facility will provide 2,500 cabinets with a total colocation space of approximately 89,340 sqf.

Earlier this year, Equinix announced its intention to form a joint venture with GIC to develop and operate hyperscale data centres in Japan.

The three initial facilities in the joint venture—one in Osaka and two in Tokyo—will serve the core workload deployment needs of a targeted group of hyperscale companies.

"As a large metropolitan area with many global and locally based enterprises, Osaka has emerged as a significant market,” said Kuniko Ogawa, Managing Director, Equinix Japan.

“In the past years, we have seen rising demand for secure, high-performance, and low-latency connectivity in the Kansai area.

“With our planned OS3 IBX data centre, backed by our global footprint and vast array of services offered on Platform Equinix, we are set to expand our ability to bring together and interconnect the infrastructure that businesses need to fast-track their digital advantage.”

The global footprint of Platform Equinix spans more than 220 IBX data centres across 63 metros. In Asia-Pacific, Equinix currently has 46 IBX data centres in metros across Australia, China, Hong Kong, Japan, Korea and Singapore. Equinix has a national footprint of 13 IBX data centres across Tokyo and Osaka in Japan.

“With the rising adoption of digital transformation, together with the acceleration of advanced technology such as AI and IoT, we are expecting a strong growth of demand for digital infrastructure in Japan, despite the short-term economy slowdown amid COVID-19,” said Mimei Ito, Research Manager, IT Services, IDC Japan.

“As the service level of digital infrastructure directly impacts the quality of user experiences, the expansion of the Equinix data centre in Osaka reflects a rapid increase in the deployment of digital workloads among enterprises and their customers in Japan's second-largest metropolitan area. This is expected to accelerate further through enhanced interconnectivity of cloud ecosystems.”