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Equinix accelerates new data centre development with US$144m investment
Wed, 2nd Dec 2020
FYI, this story is more than a year old

Equinix has made an initial investment of US$144 million for the expansion of Platform Equinix, with its fifth International Business Exchange (IBX) data center in Singapore - named SG5.

Meeting increasing demand for cloud connectivity

With the first phase of investment, the purpose-built facility will be developed to meet growing demand for cloud connectivity for enterprises as they transform digitally, the company states.

SG5 is scheduled to open in H1 2021, providing an initial capacity of more than 1,300 cabinets in the first phase.

As cloud adoption is accelerating and growing in complexity, businesses increasingly rely on hybrid and multicloud ecosystems for agility and scalability, Equinix states.

This is aligned with Singapore's Smart Nation initiative, which is driving businesses in the country to rapidly undertake digital transformation to build resiliency and stay competitive in the digital economy.

Singapore's advancement toward these goals is positioning the island city-state as a digital hub and gateway for the Asia-Pacific region.

With this in mind, the addition of the SG5 IBX to Platform Equinix will provide essential digital infrastructure support and global connectivity that will enable enterprises to build and expand their cloud ecosystems to fast-track their digital advantage.

The buildout of of SG5

The first phase of SG5 will have a capacity of 1,300 cabinets and approximately 18,400 square feet (1,710 square meters) of colocation space.

At full buildout, the facility is targeted to provide approximately 5,000 cabinets, with a total colocation space of close to 129,000 square feet (12,000 square meters).

The new purpose-built, nine-story facility will be located at the Tanjong Kling data center park.

According to the company, this will strengthen Equinix's cross-island presence and location diversity, with four of Equinix's current IBX data centers strategically spread across the island.

SG5 will be directly connected to the four existing Equinix IBX data centers in Singapore via low-latency dark fibre links and will enable customers to securely interconnect with more than 705 companies in the market.

Customers will be able to choose from a broad range of network services from more than 200 providers, and interconnect directly to customers and partners in their digital supply chain.

As a regional hub and a gateway for Asia-Pacific, Singapore serves as a key location to many multinational corporations in the region, Equinix states.

To this end, Equinix has made significant investments into developing Singapore's digital infrastructure over the years, including an initial investment of US$85.3 million into the establishment of the SG4 IBX, which opened this year.

Following global and regional trends 

Demand for digital infrastructure continues to grow on a local and regional scale, Equinix states.

According to the Global Interconnection Index Volume 4 (GXI Vol.4), a market study published by Equinix, cloud and IT services are expected to lead the growth in the Asia-Pacific region, reaching an anticipated 1,374 Tbps by 2023.

This reveals that traditional businesses in the region are moving workloads to an edge-first architecture as COVID-19 accelerates digital transformation in Asia-Pacific, Equinix states.

A commitment to sustainability and energy efficiency

Equinix has committed to a long-term goal of using 100% clean and renewable energy and lowering its carbon footprint for its global platform.

With 75% renewable energy used in Asia-Pacific in Q3 2020, SG5 follows in this vein and will adopt a number of green features for efficient energy use.

These include motion-activated LED lights, automated control and regulation of motors, as well as hot aisle containment and ceiling plenum infrastructure.

Recycled NEWater will also be used for cooling purposes, which is an energy-saving process that is aligned with the Singapore government's green initiatives, Equinix states.

Equinix Singapore data centers are also certified to meet rigorous environmental and energy management standards.

The Equinix SG1 IBX data center is BCA-IMDA Green Mark certified; the SG2 and SG3 facilities have been certified to meet Platinum status; and SG4 is certified to meet GoldPLUS status.

Adding to existing Equinix infrastructure

SG5 adds to the existing Equinix footprint of four IBX data centers in Singapore, currently providing more than 468,000 square feet (43,500 square meters) of colocation space as well as software-defined interconnection to cloud service providers (CSPs) through Equinix Fabricformerly Equinix Cloud Exchange Fabric, the company states.

Through Equinix Fabric, customers can connect to cloud on-ramps to set up direct connectivity with international and local cloud service providers including AWS, Google Cloud and Microsoft Azure.

Equinix has more than 40% private cloud on-ramps in markets where it operates, including Singapore, and has twice as many metros with multicloud on-ramps compared to the market.

Today, the global footprint of Platform Equinix spans more than 220 IBX data centers across 63 metros, providing digital infrastructure for more than 9,500 leading businesses.

In Asia-Pacific, Equinix currently has 46 IBX data centers in key metros across Australia, China, Hong Kong, Korea, Japan and Singapore.

Equinix also recently announced its plan to build OS3 in Osaka, Japan, and PE3 in Perth, Australia.

Looking to a successful future

Equinix president Asia Pacific Jeremy Deutsch says, "As the global economy and the Asia-Pacific region continue to grow, we see a strong demand for digital infrastructure to support business growth.

"This is especially evident in Singapore, which is proving to be a key hub for digital business in the region.

"Traditional infrastructure is struggling to keep up with this digital demand, leading enterprises to explore hybrid and multicloud options to further their transformation.

"The SG5 IBX data center aims to create more opportunities for enterprises in the region to build a strong digital foundation, enabling them to develop into the digital leaders of tomorrow.

Equinix managing director South Asia Yee May Leong says, "Singapore continues to thrive as a regional digital hub despite current pandemic and economic challenges.

"Today's businesses demand a solid digital infrastructure to grow and scale, leveraging vital ecosystems and cloud services via Platform Equinix.

"We are catering to the needs and demands of our customers by expanding our local footprint to enable regional and global growth as Singapore continues its Smart Nation journey and enterprises pursue digital transformation.