Equinix announced a joint venture with Singapore’s GIC and Canada Pension Plan Investment Board (CPP Investments) to raise over $15 billion in capital.
This partnership is aimed at making investment for expanding Equinix’s U.S. footprint of hyperscale data centers, the industry’s largest facilities capable of providing massive networking power.
The venture will nearly triple the investment in Equinix’s hyperscale program, adding over 1.5 gigawatts of new capacity over time by purchasing land for new facilities. Equinix will hold a 25 percent stake in the joint venture, while GIC and CPP Investments will each control 37.5 percent. The partnership will also use debt to reach the $15 billion capital goal.
This move comes as industries accelerate the deployment of artificial intelligence (AI) technologies, driving demand for vast computing power and storage capacities. Hyperscale data centers, typically used by tech giants like Amazon, Microsoft, and Google, are essential for AI applications, and this joint venture positions Equinix to capitalize on this growing market.
Adaire Fox-Martin, CEO and President, Equinix, said: “As the world’s leading companies build out their infrastructure to support key workloads such as artificial intelligence, they require the combination of large-scale data center footprints optimized for AI training and interconnection nodes for the most efficient inferencing.”
Equinix has seen strong growth fueled by demand for data center services, prompting the company to raise its annual earnings forecast earlier this year. The company has been expanding in Southeast Asia, acquiring three data centers in the Philippines from Total Information Management.
Equinix’s existing hyperscale joint venture portfolio in Europe, Asia-Pacific and the Americas has a committed investment of over $8 billion, which is expected to result in greater than 725 MW of power capacity across more than 35 facilities.
Equinix earlier said it’s expecting capital expenditure of between $2.85 and $3.1 billion in 2024. Equinix is aiming for revenue of $8.692 and $8.772 billion in 2024.
Equinix has 260 data centers across 71 metros and 33 countries. In Asia-Pacific, Equinix operates 56 data centers in 14 metros across Australia, China, Hong Kong, India, Japan, Korea, Malaysia and Singapore, including the recently opened data centers in Johor (JH1) and Kuala Lumpur (KL1) in Malaysia.
