Equinix and GIC to Invest $525 Million to Build Hyperscale Data Centers in Korea
Posted on 01/27/2022
Equinix, Inc. (Nasdaq: EQIX) announced the signing of an agreement to form a US$ 525 million joint venture in the form of a limited liability partnership with Singapore’s GIC Private Limited, a sovereign wealth fund. The joint venture will develop and operate two xScale data centers in Seoul. This new joint venture will bring the global xScale data center portfolio to more than US$ 8 billion across 36 facilities, and an expected greater than 720 MW of power capacity when completed and fully constructed.
The two facilities under this joint venture, to be named SL2x and SL3x, are expected to provide more than 45 megawatts (MW) of power capacity to serve the unique core workload deployment needs of hyperscale companies, including the world’s largest cloud service providers.
Equinix entered the Korean market in 2019 with its first IBX, SL1. At the facility, customers can connect their corporate IT infrastructure to global hyperscale providers, including Alibaba Cloud, Amazon Web Service, Google Cloud, Microsoft Azure and Oracle Cloud, via Equinix FabricTM, for a high-performance solution and enhanced user experience.
Under the terms of Equinix’s joint venture agreement with GIC, GIC will own an 80% equity interest in the joint venture, and Equinix will own the remaining 20% equity interest. The joint venture is expected to close in Q1 2022, pending regulatory approval and other closing conditions.