Invests in New Data Center in New York; Expands Existing Data Centers in Chicago and Frankfurt
REDWOOD CITY, Calif., Apr 27, 2011 (BUSINESS WIRE) -- Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, today announced plans to open its eighth International Business Exchange(TM) (IBX(R)) data center in the New York metropolitan area and plans to expand Equinix IBX data centers in Chicago, Ill., and Frankfurt, Germany. The company's decision to expand Platform Equinix is driven by strong demand for data center services and interconnection in these markets.
Equinix is investing approximately $140 million in its newest New York metro area IBX data center. The new facility is scheduled to open in the second quarter of 2012 and will primarily support the growth of Equinix's extensive financial ecosystem. The first phase will add approximately 156,000 gross square feet of space and 2,200 cabinet equivalents to Platform Equinix in the New York area, with room for additional expansions that would bring the total capacity to approximately 380,000 gross square feet of space and 7,100 cabinet equivalents.
The company is also investing approximately $30 million to expand its Chicago-3 IBX (CH3) and approximately $70 million to further expand its Frankfurt-2 IBX (FR2). The CH3 expansion will add approximately 19,000 square feet of colocation space and 600 cabinet equivalents, and is scheduled to open in the fourth quarter of 2011. The FR2 expansion, which is the third phase of expansions in this data center, will add approximately 102,000 gross square feet of space and 1,900 cabinet equivalents when completed in 2012. The initial build-out of this expansion, which will add approximately 480 cabinets, is scheduled for completion in the fourth quarter of 2011.
"These three business, financial and communications centers are critical markets for many of our customers, particularly financial and media companies, enterprises and network providers who rely on Platform Equinix to connect to partner and customer ecosystems and improve application performance," said Steve Smith, Equinix's president and chief executive officer. "We continue to experience strong demand for colocation and interconnection services in these markets. The planned expansions are in response to this demand and will enable our customers to grow their businesses in these markets and globally."
Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. More than 3,350 enterprises, cloud, digital content and financial companies connect to more than 650 network service providers and rely on Platform Equinix to grow their business, improve application performance and protect their vital digital assets. Equinix operates in 37 strategic markets across the Americas, EMEA and Asia-Pacific and continually invests in expanding its platform to power customer growth. 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.
SOURCE: Equinix, Inc.
Scott Blevins, +1-415-992-4400