REDWOOD
CITY, Calif., April 15,
2024 /PRNewswire/ -- Equinix, Inc. (Nasdaq:
EQIX), the world's digital infrastructure
company®, and PGIM Real Estate, the real estate
investment and financing arm of PGIM, Prudential Financial's global
asset management business, today announced the entry into
a $600 million joint venture to develop and operate the
first xScale data center in the U.S., located in the Silicon
Valley region of California.
The two-story facility, which will be known as SV12x, will
be built out in two phases and is expected to provide more than 28
megawatts (MW) of power capacity at full build out. SV12x is
located at Equinix's Great Oaks data center campus in San Jose, California alongside four existing
Equinix International Business ExchangeTM
(IBX®) data centers. The first phase of the facility is
scheduled to be completed in Q2 2024.
Highlights/Key Facts:
- This agreement represents the second joint venture between
Equinix and PGIM Real Estate (see links below for details on the
initial joint venture).
- Combined with Equinix's existing hyperscale joint ventures in
Europe, Asia-Pacific and elsewhere in the Americas,
this new joint venture will bring the global xScale data center
portfolio to more than $8 billion
across more than 35 facilities, and an expected greater than 725
megawatts of power capacity when completed and fully
constructed.
- Equinix xScale data centers enable hyperscale companies to add
core deployments to their existing access point footprints at
Equinix IBX data centers, enabling their growth on a single
platform that can immediately span more than 70 global metros and
offer direct interconnection to an ecosystem of more than 10,000
customers.
- Under the terms of the agreement, PGIM Real Estate will control
an 80% equity interest in the joint venture, and Equinix will own
the remaining 20% equity interest.
- PGIM Real Estate has been investing in the data center sector
since 2013. This latest joint venture agreement with Equinix marks
the first investment made through PGIM Real Estate's dedicated
global data center strategy, managed on behalf of third-party
clients, to invest exclusively in hyperscale facilities located
across internet gateway markets in the U.S., Europe, and Asia-Pacific.
Additional Resources
- Equinix and PGIM Real Estate Enter into a US$575 Million JV to Extend Hyperscale Data
Center Program into Australia
[press release: October 2021]
- Equinix and PGIM Real Estate Open First xScale™ Data Center in
Sydney for Hyperscalers [press
release: June 2022]
- Hyperscalers Expand Beyond Core Locations for Proximity and
Speed [Equinix Blog]
About Equinix
Equinix (Nasdaq: EQIX) 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 organizations 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.
About PGIM Real Estate
With $210 billion in gross assets under management and
administration,1 PGIM Real Estate provides investors and
borrowers access to a range of real estate equity, real estate
debt, agriculture, and impact solutions across the risk-return
spectrum. PGIM Real Estate is a business of PGIM, the global asset
management business of Prudential Financial, Inc. (NYSE: PRU). PGIM
Real Estate's risk management approach, execution capabilities and
industry insights are backed by a 50-year legacy of investing in
commercial real estate, a 140-year history of real estate
financing, 2 and the local experience of
professionals in 32 cities globally. Through its investment,
financing, asset management and talent management approach, PGIM
Real Estate engages in practices that strive to ignite positive
environmental and social impact, while pursuing activities that
seek to strengthen communities around the world. For more
information visit pgimrealestate.com.
1 As of Dec. 30,
2023. Net AUM is $134 billion
and AUA is $49 billion.
2 Includes legacy lending through PGIM's parent
company, PFI.
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 current inflationary environment; foreign currency
exchange rate fluctuations; increased costs and increased
challenges to procure power and the general volatility in the
global energy market; the challenges of acquiring, operating and
constructing IBX® and xScale® data centers 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 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; risks related to potential cybersecurity breaches; 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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SOURCE Equinix, Inc.