Equinix revs up mainland expansion after Shanghai data centre launch

Equinix seeks to bolster presence in market with launch of new facility in Shanghai

PUBLISHED : Wednesday, 19 September, 2012, 12:00am
UPDATED : Wednesday, 19 September, 2012, 3:10am

Global data centre services giant Equinix yesterday opened the first phase of an advanced new facility in Shanghai, bolstering its expansion plans in the world's second-largest economy.

The mainland launch came about two months after Californian-based Equinix completed its US$230.5 million acquisition of information-technology services provider AsiaTone, a Hong Kong company with operations in Shanghai.

Preparations are now under way for new infrastructure projects in other major mainland cities, according to Alex Tam Wing-yiu, the managing director at Equinix Greater China.

"Our expansion in [mainland] China is a strategic move to meet strong demand for premium data centre services from our customers around the globe," Tam said.

A data centre is a secure, temperature-controlled facility built and equipped to house large- capacity server computers and enterprise data-storage systems, with multiple power sources and high-bandwidth links to the internet.

Founded in 1998, Equinix operates about 105 data centres across 13 countries. These facilities serve more than 4,000 firms.

The Nasdaq-listed company, which forecasts its global revenue will exceed US$1.89 billion this year, gained six data centres and one so-called disaster-recovery centre in Hong Kong, Shanghai and Singapore when it acquired AsiaTone.

That included the Shanghai data centre, which will have a gross area of 80,000 square feet when all three phases of its construction are completed.

Tam said Equinix was targeting new data centre investments in similar major cities such as Beijing and Guangzhou.

Research and consulting firm Frost & Sullivan expects the data centre services market on the mainland to have a capacity of 1.86 million square metres by 2016.

In Hong Kong, Equinix opened the second phase of its US$72 million high-performance data centre in Tsuen Wan in July.

Prominent customers in the city include Hong Kong Mercantile Exchange, Bloomberg, Verizon, Wharf T&T, and "cloud" services companies Carpathia Hosting and BrightHost.