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Equinix to Build New Data Center in Melbourne

The US$60M expansion into Melbourne will meet the demand for premium data center services in Australia and enhance Equinix's global footprint in Asia Pacific

REDWOOD CITY, Calif. and SYDNEY, Jan. 22, 2014 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced it plans to invest approximately US$60M to build a new data center in Melbourne. Equinix's new Melbourne data center – called ME1 – will address strong demand from customers for premium data center services in Melbourne, as data consumption and cloud services experience continued growth in the Australian and global IT markets.

(Logo: http://photos.prnewswire.com/prnh/20140102/MM39832LOGO)

Highlights / Key Facts

  • Located in Port Melbourne, ME1 will provide a capacity of 1,500 cabinets, with the first phase of 375 cabinets scheduled for completion in Q4 2014. Equinix will construct a specially built 105,000 square foot building shell to house the new ME1 data center and allow for future development.
  • ME1 will be built to meet the LEED® (Leadership in Energy and Environmental Design) Green Building Rating System, a framework developed by the U.S. Green Building Council for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions. The plan currently includes evaporative coolers to support low power usage effectiveness (PUE).
  • Melbourne is a hub for software companies with Victoria accounting for almost a quarter of Australia's economic activity. The ME1 International Business Exchange(IBX®) data center will enable existing Equinix customers to expand into the second largest market in Australia providing opportunities for business connectivity in APAC and across Equinix's global footprint[1].
  • The expansion of Equinix's footprint in Australia is the latest in a series of expansions across Asia-Pacific markets, enabling Equinix to assist multi-national customers looking to expand into local and regional markets. ME1 will be the company's fourth data center to be built in Australia and allows businesses to connect to leading companies inside its dynamic business ecosystems to accelerate their digital supply chain, particularly within the networks, financial services, cloud, and digital content markets.
  • The Australian IT market is continuing to experience significant growth. Cisco's Visual Networking Index predicts that by 2017 there will be 23 million Internet users in Australia – up from 18 million in 2012. In Australia, IP traffic will reach 30 gigabytes per capita in 2017, up from 14 gigabytes per capita in 2012, making it equivalent to 2 billion DVDs per year, 189 million DVDs per month or 258,430 DVDs per hour[2].
  • According to a recent report by Synergy Research[3], Equinix is the market leader in retail collocation globally with 18 percent market share. From this unique vantage point Equinix has seen an increase in businesses evaluating their data center strategies to have more compelling hybrid cloud solutions – specifically enterprises benefiting from the security and reliability of the private cloud while harnessing the scalability and flexibility power of the public cloud. By housing IT infrastructure in a carrier-neutral data center such as Equinix, businesses are able to expand their cloud and data capabilities rapidly as data consumption and content volume continues to increase.
  • Equinix's global platform – Platform Equinix™ – gives customers access to more than 950 network providers, 120 of which are accessible in Australia. The dual-market presence provides a primary and redundant solution for customers as lowered latency significantly improves performance, flexibility and agility.

Quotes  

  • Tony Simonsen, managing director, Equinix Australia:
    "We continue to see a surge in demand for data center and interconnection services in the Asia-Pacific (APAC) region and the addition of ME1 will aid enterprises looking to gain proximity to customers and partners and to improve application performance for employees and end-users in Australia."

Additional Resources

About Equinix
Equinix, Inc. (Nasdaq: EQIX), connects more than 4,400 companies directly to their customers and partners inside the world's most networked data centers. Today, businesses leverage the Equinix interconnection platform in 31 strategic markets across the Americas, EMEA and Asia-Pacific. www.equinix.com.

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, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue 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; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent 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.

Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.

[1] http://www.invest.vic.gov.au/competitive-dynamic-business-environment
[2] http://www.cisco.com/web/solutions/sp/vni/vni_forecast_highlights/index.html               
[3] http://www.srgresearch.com/articles/mature-us-colocation-market-led-equinix-and-centurylink-savvis

SOURCE Equinix, Inc.

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