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Equinix to Launch Two New Facilities

By theWHIR.com , October 23, 2008

By Anastasia Tubanos, theWHIR.com

October 23, 2008 -- (WEB HOST INDUSTRY REVIEW) -- Data center operator Equinix (www.equinix.com) announced on Wednesday plans to build two new data centers in London and Singapore.

According to the company's most recent announcement, the expansions "come at a time when demand in the London and Singapore markets continues to outpace supply, providing a favorable pricing environment."

Marking its fifth facility in the UK market, the 110,000 square foot London data center will be built in the suburb of Slough, the same area that SAVVIS launched its data center last week and already houses Equinix's LD4 Internet Business Exchange data center.

It seems Slough is a fairly popular area for web hosts and data center providers to place their facilities, perhaps due to its convenient access to two separate electricity sub-stations and good connectivity to the national grid. Rackspace also has a carbon neutral data center in this area.

Equinix says LD5 will have the capacity for multiple phases, enabling it to build out the site over time as demand increases. The first phase of the LD5 center, which is anticipated to open in Q1 2010, will accommodate approximately 1,400 cabinet equivalents, and, at full build out, will have a total capacity of approximately 5,500 to 6,000 cabinet equivalents. Capital expenditures for the initial phase of the build out are expected to range between $80 million and $90 million.

As for the Singapore data center, which the company says will be 300,000 square feet, it will also be built out in phases, with capital expenditures for the initial phase expected to be approximately $45 million.

The company says the Singapore facility will provide additional capacity to Equinix's existing SG1 center located in the southern region of Singapore as well as enable the company to continue the growth of the its peering business, since the SG2 center will be located close to one of the largest submarine cable landing points in the region. The initial phase of SG2 is expected to open in Q3 2009.

"These two new fully funded builds, in addition to our recently announced build in Paris, represent Equinix's longstanding strategy of measured expansion in strategic markets where demand is strong," says Steve Smith, president and CEO of Equinix. "In London and Singapore, we continue to experience strong growth and anticipate that we will soon reach capacity in these existing centers. These new centers will provide the company with a long-term solution to meet the demand in these markets, as we pursue our flexible expansion model that enables us to build out a property in multiple phases over time."

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