Singapore GIC, U.S. Equinix to build $1 bil. hyperscale data centers in Japan
SINGAPORE, NNA - Equinix Inc., a U.S.-based data center firm, and Singapore’s sovereign wealth fund GIC have agreed to set up a joint venture worth more than $1 billion to develop and operate hyperscale data centers in Japan on the back of the digital economy’s rapid growth.
The joint venture, in which GIC will own an 80 percent stake while Equinix will own the remaining 20 percent, will initially include one facility in Osaka and two in Tokyo, Equinix said on Tuesday.
The three facilities are expected to provide about 138,000 kilowatts of power capacity to the two markets and plan to offer services to a targeted group of hyperscale companies including the world’s largest cloud service providers, it added.
“The demand for data center capacity in the Tokyo and Osaka markets has outstripped supply,” Jabez Tan, head of research for Structure Research, a Toronto-based research and consulting firm, was quoted as saying in a press statement.
“Through this new joint venture, Equinix and GIC will be a top provider of new data center capacity for the world’s largest hyperscale companies seeking to expand in these two strategic markets,” he added.
The two already partnered in a similar deal to develop and operate large data centers in Europe in 2019.
For years, large cloud service providers such as Alibaba Cloud, Amazon Web Services, and Google Cloud have partnered with Equinix to leverage its global platform of 210 data centers to directly connect to their business partners and customers, according to Equinix.
“As these companies continue to expand in Asia-Pacific, they require capacity at scale to match their internal compute, storage and edge cache requirements,” it said in the statement.