SG GIC Invests USD 3.9B in Equinix xScale

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Equinix announced a partnership with Singapore’s sovereign wealth fund GIC to develop new data centers through the Equinix xScale program.

The program will see Equinix building new hyperscale data centers for the world’s largest cloud service providers. The xScale portfolio of 32 facilities will provide more than 600 megawatts (MW) of power capacity when fully built out.

Over the past two years, Equinix launched the development and operation of xScale data centers worldwide, representing an investment of USD 3 billion. The GIC agreement will add another US$3.9 billion through the joint venture. 

Charles Meyers, chief executive officer of Equinix, said the xScale portfolio allows the company to support the rising demands of the world’s largest cloud service providers.

”For years, the world’s largest cloud service providers, including Alibaba Cloud, Amazon Web Services, Google Cloud, IBM Cloud, Microsoft Azure, and Oracle Cloud Infrastructure, have partnered with Equinix to leverage its global platform of more than 220 data centers to directly connect to their strategic business partners and customers,” Meyers added.

After deal closing and buildout, the xScale data center portfolio will span three regions: Europe, the Asia-Pacific, and the Americas. 

“With our xScale program, these hyperscalers can continue to grow at Equinix while in close proximity to an ecosystem of 10,000 customers. The joint venture arrangement of xScale enables these large deployments to be structured in an off-balance sheet model that aims to preserve capital for investment in our traditional retail data center and digital infrastructure business and maintain our strategic and financial flexibility,” said Meyers.

With xScale data centers, hyperscale companies can add core deployments to their existing access point footprints at Equinix. They can grow their business on a single platform that can immediately span 63 global metros and offer direct interconnection — within a set of ecosystems — to their customers and strategic business partners.

Under the terms of the joint venture, GIC will own 80% equity in future joint ventures, and Equinix will own the remaining 20%.

Image credit: iStockphoto/ty cgi stock