DataCenterNews Asia logo
Specialist data center news for Asia
Story image

How the Equinix deal with Verizon opens new routes to global interconnection

Mon 12 Dec 2016
FYI, this story is more than a year old

Context is critical in a deal the size of Equinix’s $3.6 billion acquisition of 29 Verizon data centers. In this case, the context boils down to this: Our customers needed more opportunities for interconnection, and we wanted to provide them.

The increasing digitization of the global economy, driven in large part by the expansion of cloud computing, is the hallmark of the interconnected era. Companies today are finding they increasingly need to securely interconnect with partners, customers and employees instantly, and anywhere. And they’re telling us about it. We hope the deal with Verizon will help.

This acquisition expands interconnection in several established markets in the Americas, and also offers paths to new metros and ecosystems in the region.

Though the size of a deal spanning 15 markets is almost unprecedented for Equinix, it’s also a familiar move in many ways. The Verizon deal is the 13th acquisition in our 18-year history, and it helps us continue to do what we always aim to do – be there, in whatever markets our customers need us, to meet their interconnection needs. We were confident this deal would do that because of a variety of strengths in the Verizon portfolio, including its geography and customer makeup. I’ll expand on that and some of the other advantages of the acquisition here:

Access to critical new markets

The Verizon acquisition brings us into three new markets, Bogota, Colombia; Culpeper, Va.; and Houston. A new presence in Bogota strengthens our positon in Latin America. Culpeper is a highly secure hub for government business. Houston is a center for the energy industry and hosts a rich enterprise market. Each adds a critical element to our global platform and increases colocation options for our customers across a range of industries. I’ll focus more on each of these markets below.

Stronger ecosystems, cloud density and value for our enterprise customer base

The Verizon data centers we are acquiring includes 900 customers, many of whom are enterprise customers new to Equinix, including some Fortune 1000 companies. Our new presence in Houston gives us entry into a city with a heavy concentration of energy companies, as well as the 4th-highest count of Fortune 500 companies in the U.S. In addition, by expanding our global platform, we enhance cloud and network density, increase the choice and vibrancy of potential partnerships in our industry ecosystems, and extend our geographic range. This enhances our ability to help enterprises implement hybrid and multi-cloud strategies.

Expanded capacity in existing markets

The 12 markets where the deal bolsters an existing Equinix presence are Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, Miami, New York, Sao Paulo, Seattle, Silicon Valley and Washington. The acquired Verizon facilities will tie into existing campuses in these markets, expanding capacity to support customer growth, while increasing the interconnection options inside newly combined – and richer – industry ecosystems.

Accelerated Latin American growth

One of the key Verizon facilities in the deal is Miami NAP of the Americas (NOTA). It has 90 global networks interconnecting to 150 countries and hosts the termination point of 15 subsea cables systems. This is a key gateway to Latin America. In addition, Verizon’s Sao Paulo site is a cloud, network and financial hub in Latin America, and will be directly connected to our three Sao Paulo data centers after close. The Bogota site establishes us in Colombia, which has the highest number of subsea cable landings in Latin America and where 94% of internet traffic is driven by international content. Structure Research estimates the value of Latin America’s retail colocation market was $445 million in 2015 and will double by 2020. We want our customers to benefit from more access to this burgeoning marketplace.

Enriched government sector relationships

The Culpeper site is a highly secure facility with a heavy concentration of government customers. It is a key location for federal IT initiatives and the federal cloud market, which is projected to grow at a compound annual growth rate of 21% through 2019.

The Verizon deal is estimated to close in mid-2017, subject to customary closing conditions. The 175 data centers we’ll run by then is a 58% increase from the 111 we started with in 2016. By any measure, it’s astonishing growth in a short period. But it’s also smart growth, and it’s precisely aligned with our history of expanding today to meet our customers’ interconnection needs tomorrow.

Article by Karl Strohmeyer, Equinix blog network

Related stories
Top stories
Story image
Colocation
Digital Edge chooses Nortek’s StatePoint for new data center
Digital Edge will use Nortek's StatePoint liquid cooling technology in its new data center, the first commercial colocation operator in Asia to do so.
Story image
Cybersecurity
The 'A-B-C' of effective application security
Software applications have been a key tool for businesses for decades, but the way they are designed and operated has changed during the past few years.
Story image
Microsoft
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Talend
Talend introduces new data health solutions for businesses
Talend has announced its latest version of Talend Data Fabric, with the release of Talend Trust Score enabling data teams to establish a foundation for data health.
Story image
BitTitan
Why tenant consolidation is critical to cloud success
Consolidating tenants can improve cost management, security and engagement after a flurry of reactive activity following the widespread shift to remote operations.
Story image
Sustainability
Siemens showcases new automated solutions for data centers
Siemens has implemented new automated solutions and AI in the Baltic region's largest data center, providing insight into the future of data center management.
Story image
Sustainability
AyalaLand and FLOW partner for data center development
AyalaLand Logistics Holdings Corp (ALLHC) and FLOW Digital Infrastructure have entered into a framework agreement to bolster the development of carrier-neutral data centers in the Philippines.
Story image
Data Center
Sime Darby Berhad to use Equinix APAC data centers
Equinix has expanded its digital infrastructure services, including its International Business Exchange data centers, to Sime Darby Berhad
Story image
Infrastructure
Kyndryl and CDC Data Centres enter multi-year agreement
Kyndryl and CDC Data Centres have announced an agreement, under which Kyndryl will design and manage a customised environment within CDC's facilities.
Story image
Hyperscale
SpaceDC partners with Aofei for data center sales in Asia
SpaceDC has partnered with Aofei Data International to sell Aofei's data centers, CDN and SDN in China.
Story image
Disaster Recovery
Kacific launches emergency connectivity offering, CommsBox
Kacific has announced the release of a new emergency connectivity offering designed to rapidly provide broadband service in emergency or disaster zones.
Story image
APAC
Odaseva expands in APAC and UK with more security features
Odaseva, a data platform for Salesforce, is establishing new headquarters in London as well as a new data center in India.
Softiron
For every 10PB of storage run on HyperDrive vs. comparable alternatives, an estimated 6,656 tonnes of CO₂ are saved by reduced energy consumption alone over its lifespan. That’s the equivalent of taking nearly 1,500 cars off the road for a year.
Link image
Story image
Data Center
Preventing downtime costs and damage with Distributed Infrastructure Management
Distributed Infrastructure Management (DIM) can often be a lifeline for many enterprises that work with highly critical ICT infrastructure and power sources.
Story image
Sustainability
Power at the edge: the role of data centers in sustainability
The Singaporean moratorium on new data center projects was recently lifted, with one of the conditions being an increased focus on power efficiency and sustainability.
Story image
Hyperscale
Seagate, Phison partnership to improve data center offering
Seagate and Phison have announced plans to expand their SSD portfolio to assist data center customers in reducing total cost ownership (TCO).
Story image
Digital Transformation
EdgeConneX enters Indonesia, plans for data center campus
EdgeConnex has announced it is expanding its presence in Asia with the acquisition of GTN Data Center in Indonesia.
Story image
Data Center
Fujitsu AU signs PPA to offset 40% of NSW data centre load
The agreement marks a key step for Fujitsu Australia in decarbonising its operations and providing lower-emissions services to its customers.
Story image
Sustainability
YTL unveils development of solar-powered data center campus
YTL Power (YTL) has announced the development of a 500MW data center campus in Johor, the first data center park in Malaysia to be powered by solar energy.
Story image
Digital Transformation
Multiplex, NEXTDC making strong progress on S3 data centre
Multiplex has made a significant achievement on Stage 1 of NEXTDC’s S3 data centre, ‘topping out’ the structure in the Artarmon on Sydney’s lower North Shore.
Story image
ABI Research
70% better 5G power consumption with hardware optimisation
ABI Research has found that hardware optimisation promises up to 70% improvement in 5G power consumption as networks reach scale in many developed nations.
Story image
Data Center
Equinix enters Africa, closing US$320 million acquisition of MainOne
The completion of the acquisition augments Equinix's long-term strategy to become a leading African carrier-neutral digital infrastructure company.
Story image
SD-WAN
Orange moves Siemens AG’s entire operations to a SD-WAN
Orange Business Services has migrated Siemens AG's entire global operations, 1168 sites across 94 countries, to a SD-WAN
Story image
Microsoft
Microsoft unveils adaptive accessories for disability access
Microsoft is introducing an expansive Inclusive Tech Lab to give people with disabilities greater access to technology through new software features and adaptive accessories.
Story image
Telstra
Telstra expands business offerings in the Philippines
The expansion aims to offer more choice for customers and enhance connectivity into the Philippines, and within the country.
Story image
Sustainability
Grasping the opportunity to rethink the metrics of a sustainable data centre
A data centre traditionally has two distinct operations teams: the Facility Operations team, and the IT Operations team. Collaboration between them is the key to defining, measuring, and delivering long-term efficiency and sustainability improvements.
Story image
Infrastructure
Report - Data investment the key to better business growth
New research from Digital Realty has revealed that almost half (47%) of IT leaders globally believe their business investment in data systems and infrastructure is a key obstacle or concern.
Story image
Data Center
CBRE finds record levels of investment in APAC data centers
CBRE's new report finds direct investment in the sector more than doubled in 2021, surpassing investment volumes for the past four years combined
Story image
Red Hat
Red Hat expands capabilities to provide streamlined application development in cloud
"Application development is undergoing significant change and developers need tools to support this transformation."
Story image
Sustainability
NTT launches IoT Services for Sustainability offering
"We know what actions are needed to build a more sustainable future and have a robust suite of technologies available to help deliver this impact."
Story image
Research
New strategies for cloud-native attacks - Aqua Security
New research from Aqua Security reveals attackers are using more sophisticated techniques to target cloud-native environments.
Story image
Databricks
Databricks grows in APAC market, expands into Korea
Databricks officially launches a local office in Seoul, Korea, building on existing partnerships with Cloocus, Megazone and the Weverse Company
Story image
SaaS
Cisco reveals new tech, intends to prevent network issues
Cisco has revealed new technology intended to mitigate costly disruptions by aiding IT teams in learning, predicting and planning.
Story image
Surveillance
Genetec launches new enclosure management system for data centers
Genetec has released a new enclosure management solution that will give data centers the ability to secure, monitor and manage access to racks and cabinets remotely.
Story image
Sustainability
ABB unlocks sustainable energy upgrades for data centers
ABB says its new microgrid solutions will get data centers ready for the green revolution and use their own energy sources with a reduced carbon footprint.
Story image
Sustainability
Video: 10 Minute IT Jams - SoftIron CMO on Data Center Sustainability
In a special Power/Energy feature week presentation, we are joined by SoftIron CMO Andrew Moloney.
Story image
Power / Energy
Keysight Technologies introduces new next-gen DPT solution
Keysight Technologies has announced its new next-generation Double-Pulse Tester (DPT) with the PD1550A Advanced Dynamic Power Device Analyser.
Story image
Cybersecurity
A10 Networks finds over 15 million DDoS weapons in 2021
A10 Networks notes that in the 2H 2021 reporting period, its security research team tracked more than 15.4 million Distributed Denial-of-Service (DDoS) weapons.
Story image
Cloud
Colt connectivity with AWS increases services in Asia
Colt Technology Services expands cloud connectivity to AWS Direct Connect Hosted services, with speeds of up to 10 Gbps in Asia.
Story image
Cable
New high-performance cable in the works for Asia
A new high-performance submarine cable is being built to enhance connectivity between Hong Kong, China and Southeast Asia.
Exabeam
Find out how a behavioural analytics-driven approach can transform security operations with the new Exabeam commissioned Forrester study.
Link image
Story image
Sustainability
RDA and MVGX partner for sustainable data center development
Red Dot Analytics (RDA) and MetaVerse Green Exchange (MVGX) have entered a strategic partnership to make Singapore's data center development and operations more sustainable.
Story image
Power / Energy
DigitalBridge makes $30 million equity investment in LEDC
Leading Edge Data Centres (LEDC) has announced it has secured an AUD$30 million equity investment in its regional edge network from an affiliate of DigitalBridge Group, DigitalBridge.
Story image
Sustainability
AirTrunk boosts Japan presence with West Tokyo data center
AirTrunk is planning to build TOK2, a new hyperscale data center in Japan which will strengthen the company’s presence in the country.