The investment will be used entirely on U.S.-based xScale buildouts, ultimately adding more than 1.5 gigawatts of new capacity
Global data center infrastructure company Equinix has announced a joint venture with Singaporean wealth fund GIC and Canada Pension Plan Investment Board (CPP Investments) to invest $15 billion to bolster Equinix’s data center buildouts.
Equinix will use the investment to expand its xScale data centers, which support AI workloads and are part of a program launched five years ago with current investment of 8$ billion. Today, these data centers are only available in Europe and Asia, but in February, the company said it plans to bring them to select U.S. market. While the $8 billion is expected to deliver more than 725 MW of power capacity across more than 35 facilities across Europe, APAC and North America, the newly announced $15 billion investment will be used entirely on U.S.-based xScale buildouts, ultimately adding more than 1.5 gigawatts of new capacity, said Equinix.
“As the world’s leading companies build out their infrastructure to support key workloads such as artificial intelligence, they require the combination of large-scale data center footprints optimized for AI training and interconnection nodes for the most efficient inferencing,” said Adaire Fox-Martin, CEO and president or Equinix. “Our xScale and IBX offerings are uniquely positioned to address this business need, enabling companies to realize the powerful potential of AI.”
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With the notoriously high power needs of AI data centers already becoming apparent, Equinix has highlighted sustainability in its messaging around the xScale data centers. “Data centers consumed an estimated 460 terawatt-hours (TWh) of electricity in 2022, nearly 2% of all the world’s electricity,” the company states on its website, adding that it hopes to achieve 100% renewable energy use by 2030.
Further, in a press release about the JV, it said: “Equinix is committed to delivering sustainable digital infrastructure and engaging our suppliers and partners in supply chain responsibility. Equinix has continued to make advancements in the way it designs, builds and operates its data centers with high energy-efficiency standards, and all xScale data centers will be LEED certified (or certified in the regional equivalent).”
Equinix said it will own 25% of the JV and CPP Investments and GIC will each control a 37.5% equity interest.