Equinix Acquires Istanbul Data Center from Zenium
The Zenium data center, which will be renamed Equinix IS2, will further strengthen the
- According to the
International Monetary Fund, Turkeyhas the world's 17th-largest nominal GDP1 and a population of approximately 80 million people. The acquisition of IS2 extends Equinix'sability to provide Turkish businesses with the direct and secure connectivity they need to expand their global reach in new and existing markets. Equinixcurrently operates a single facility—IS1—in Istanbul, and has 67 International Business Exchange™ (IBX®) data centers across Europeand the Middle East, strategically located in 18 metropolitan areas across 13 countries.
- The purchase of the Zenium business includes a total of three buildings and land. The IS2 data center building is partially fitted out; the two other buildings are shell and core and prepared for data center fit out. IS2 provides
Equinixwith 1,500 square meters of colocation space today with the ability to increase this to 12,000 square meters and up to 22MW of critical customer load at full build—creating the ability for a future campus environment.
- There are 10 networks, including Turk Telecom, already present at the new IS2 data center, providing network choice to the many multinationals, hyperscalers and IT vendors who use
Istanbulas a regional headquarters or a gateway to markets in Asiaand the Middle East. This connectivity is the foundation for cloud adoption, as enterprises continue to increase IT consumption of cloud-related services to accelerate business performance.
- According to the Global Interconnection Index, which measures and forecasts the growth of Interconnection Bandwidth,
Europeis expected to grow 44% per annum to reach 1451 Tbps of installed capacity by 2020. Europe'sgrowth will be driven by a number of factors, including data sovereignty and the need for European businesses to exchange information with other businesses in-region. Istanbulis a key traffic route for submarine cables between Europe, Asiaand Africa. These cable systems enable accelerated traffic globalization and data consumption, as well as rapid growth of cloud and online services. They are increasingly important for industries that rely on low-latency connectivity, such as the online gaming and CDNs — many of which already use Istanbulas a regional hub today. Equinixcurrently operates more than 180 IBX data centers in 44 markets, providing customers even more ways to connect with other businesses around the world on Platform Equinix™.
- Slaughter and May acted as lead external legal advisor for
Equinix. RBC Capital Marketsserved as Zenium's financial advisor.
Eric Schwartz, president, EMEA, Equinix:
"The dynamic evolution of digital technology is disrupting how business is done across all industries, forcing companies to invent new, information-centric business models. These business models rely on interconnection and distributed IT architecture. As the Turkish economy continues to grow,
Istanbulwill become an increasingly important hub for connectivity and technology infrastructure, and this new campus will help Equinixmeet this demand from customers across our global customer base."
- Franek Sodzawiczny, CEO & founder, Zenium:
Equinixwith this transaction, which enables us to focus on our business in Western Europe. The technological infrastructure in Turkeyis advancing quickly, as businesses are requiring more interconnection to compete. This is a great opportunity and Equinixis now well positioned to drive this exciting data center business forward."
- Equinix Expansion Continues in 2017 as Interconnection Demand Soars [blog]
- Equinix Extends the Digital Edge for Companies with Five New Data Centers and 14 Expansions Opening in 2017 [press release]
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from expectations discussed in such forward-looking statements, including statements related to the acquisition of Zenium and the expected benefits from the acquisition. Factors that might cause such differences include, but are not limited to, unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix, including Zenium; the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering Equinix services; 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 filings with the Securities and Exchange Commission. In particular, see recent
1 "Report for Selected Countries and Subjects". IMF World Economic Outlook Database,
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