Equinix to Build Two New $100 Million Data Centers in the Washington, D.C. and Silicon Valley Areas.
Investment Will Add Important New Capacity in Two of Equinix's Top Interconnection in·ter·con·nect
v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects
To be connected with each other: The two buildings interconnect.
v.tr. Locations; Part of $1.4 Billion Expansion Program Since 2007
FOSTER CITY, Calif. -- Equinix, Inc. (Nasdaq:EQIX), a provider of global data center services, today announced plans to build a new 152,000 square foot International Business Exchange (IBX IBX Independence Blue Cross (Health Insurance Company)
IBX Internet Business Exchange
IBX Integrated Business Exchange
IBX Inner Banks (Foundation of Renewal for Eastern North Carolina) [R]) data center in the Washington D.C. area and a new 170,000 square foot IBX data center in the Silicon Valley. The two new greenfield projects For other uses, see Greenfield (disambiguation).
In software engineering jargon, a greenfield is a project which lacks any constraints imposed by prior work. The image is that of construction on greenfield land, where there is no need to remodel or demolish an existing increase the company's data center footprint in the two regions by 33 percent and are part of Equinix's $1.4 billion 2007-2010 expansion program for 15 out of the 18 markets in which it currently operates. The expansions are planned to open when Equinix anticipates reaching capacity in the Washington, D.C. and Silicon Valley markets, where the company has operated for almost 10 years, and which continue to serve as strategic regions for global network interconnection.
The new Washington New Washington is the name of several towns in the United States:
The new Silicon Valley-5 (SV5) IBX center will be built on land owned by Equinix that is immediately adjacent to the company's flagship Silicon Valley-1 (SV1) IBX center in San Jose San Jose, city, United States
San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , CA. It will have a total capacity for 2,600 net sellable cabinets at full build out. Equinix intends to build out the center in two phases, with total capital expenditures expected to be approximately $145 million, with approximately $100 million for the initial phase and an estimated $30 million to be spent in 2009. The first phase will have a capacity of approximately 1,000 cabinets when it opens at the end of the third quarter 2010, and the second phase, which will be built out over time as demand warrants, will include the addition of approximately 1,600 cabinets.
"While the past year has seen the U.S. and global economy experience an unprecedented recession, the demand for quality data center space and services continues to grow, especially in the Washington, D.C. and Silicon Valley markets which are two of the most network-dense regions in the country," said Dan Golding vice president and research director at Tier 1 Research. "This demand is driven by the short-term trend Short-term trend
Erratic price movements that last less than three weeks. of a supply-demand imbalance imbalance /im·bal·ance/ (im-bal´ans)
1. lack of balance, such as between two opposing muscles or between electrolytes in the body.
2. dysequilibrium (2). of available data center space, as well as the long-term trend of the increasing need to safely colocate and interconnect (1) To attach one device to another.
(2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. data networks in our information-driven economy."
The DC6 IBX will provide additional supply to the Washington, D.C. market where Equinix has experienced strong demand from existing telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. customer expansions, as well as from government customers and government contractors A government contractor is a private company that produces goods or services under contract for the government. Often the terms of the contract specify cost plus – i.e., the contractor gets paid for its costs, plus a specified profit margin. . Equinix's Washington, D.C. area campus, located in the Dulles Corridor, is also home to many of the region's technology companies. Equinix's existing five data centers in the Washington, D.C. market currently feature more than 470,000 square feet of data center space and access to more than 131 networks, making the campus one of the richest IP network interconnection points in the U.S.
The SV5 IBX will provide much needed capacity to the constrained con·strain
tr.v. con·strained, con·strain·ing, con·strains
1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force.
2. Silicon Valley market, where companies in the Internet content and media, Software as a Service (SaaS) and e-commerce sectors have been driving significant demand for data center and interconnection services. The new center will also allow Equinix to meet the long-term expansion needs of its existing Silicon Valley area customers. More than 74 networks currently operate across approximately 500,000 square feet of data center space in Equinix's existing four centers in the Silicon Valley.
Both new centers will feature a physical infrastructure consistent with Equinix's industry-leading standards for security, environmental control and power availability.
"Equinix IBX centers have served as important drivers of business in the Washington, D.C. and Silicon Valley markets for nearly 10 years, and these strategic regions continue to be our top two markets globally," said Steve Smith, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Equinix. "The investments we made years ago in purchasing land adjacent to our existing centers in these markets has given us significant flexibility in our expansion strategy. As we expect to reach capacity within our existing Washington, D.C. and Silicon Valley area centers sometime in 2010, these newly announced projects will enable us to accommodate increasing customer growth and to further expand our market leadership position."
Currently, Equinix houses more than 300 network providers around the globe in 45 IBX data centers across 18 markets and 10 countries.
As a result of these expansions in the Washington, D.C. and Silicon Valley areas, capital expenditures for 2009 are now expected to be approximately $435.0 million, comprised of approximately $60.0 million of ongoing capital expenditures and $375.0 million of expansion capital expenditures. All other financial guidance provided by Equinix on July 22, 2009 remains unchanged.
Equinix, Inc. (Nasdaq:EQIX) provides global data center services that ensure the vitality vi·tal·i·ty
1. The capacity to live, grow, or develop.
2. Physical or intellectual vigor; energy. of the information-driven world. Global enterprises, content and financial companies, and network service providers rely upon Equinix's insight and expertise to protect and connect their most valued information assets. Equinix operates 45 International Business Exchange[TM] (IBX[R]) data centers across 18 markets in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe and Asia-Pacific.
Important information about Equinix is routinely posted on the investor relations Investor relations
The process by which the corporation communicates with its investors. page of its website located at www.equinix.com/investors. We encourage you to check Equinix's website regularly for the most up-to-date information.
This press release contains forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 relating to relate prep → concernant
relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421.
2. ; 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.