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Equinix signs $1bn deal to build European hyperscale data centres

(Image credit: Image Credit: Welcomia / Shutterstock)

Equinix and GIC are teaming up to bring xScale data centres in Europe.

According to media reports, the deal will see the two companies pour in roughly $1 billion into the joint venture, which will see Equinix develop xScale data centres to handle the demands of the world’s biggest cloud service providers.

This could include Equinix’s existing clients – Alibaba Cloud, Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure, Google Cloud, to name a few.

The joint union is expected to formally kick it off in the third quarter of this year, with GIC, Singapore’s sovereign wealth fund, owning an 80 per cent stake in the venture. GIC will also be buying two International Business Exchange (IBX) data centres (the London LD10 and Paris PA8) from Equinix.

The joint venture will be building xScale centres in Amsterdam, Frankfurt and London, which means there will be a total of six centres, providing a total of 155 megawatts.

In a press statement, Charles Meyers, president and CEO of Equinix, said, “The JV structure will enable us to extend our cloud leadership while providing significant value to a critical set of hyperscale customers. We look forward to launching similar JVs in other operating regions and believe that these efforts will continue to further differentiate Equinix as the trusted center of a cloud-first world.”