Consistent with its long-standing commitment to data center development in China, the global data center company, Eqinix, has launched its newest data center in Shanghai, a city set to emerge as the world’s financial capital by 2020.
The launch strengthens Equinix’s (News - Alert) footprint in Asia-Pacific data center space.
Global customers are thronging China’s data center market for premium services. The newly launched facility, SH5, is expected to address this strong demand for high-performance premium colocation services from global customers.
The Shanghai data center will undergo a three-phased expansion, Equinix revealed in a recent statement. In the initial phase, SH5 will provide 200 cabinet equivalents. Upon completion of all three phases, the facility will offer 900 cabinets with a gross area of 80,000 square feet.
SH5 is one of six data centers that Equinix gained as a result of its $230.5 million acquisition of Asia Tone in July 2012.
Their facilities include one disaster recovery center, and are located across Hong Kong, Shanghai and Singapore.
Research and consulting firm Frost & Sullivan (News - Alert) expects the data center services market in China to see a compound annual growth rate (CAGR) of 13.9 percent from 2009 to 20161. China’s data center capacity is expected to reach 1.86 million square meters by 2016, growing at an 11.3-percent CAGR from 2011 through 2016.
“Our expansion in China is a strategic move to meet strong demand for premium data center services from our customers around the globe. China is one of the fastest growing markets in the Asia-Pacific region and a priority market for many multinational companies,” said Alex Tam, managing director of Equinix for Greater China. “In addition, the PRC government’s twelfth, five-year plan announced in 2011 encouraged enterprises to adopt new technologies, such as cloud computing technology. This will inevitably result in tremendous demand in the market for data center services that deliver high-performance and availability.”
“As a leading global data center service provider,” he said, “Equinix will continue expanding Platform Equinix to support our customers’ business needs with our global data center footprint.”
“With Shanghai expected to be the global financial center by 2020, the market requires a reliable data center service provider with international experience to provide a highly secure, available and robust data center service,” Tam added. “With established financial ecosystems in major financial centers around the world, Equinix is able to support mission-critical financial services applications to ensure business continuity.”
Equinix recently announced that Steve Smith, CEO and president, and Keith Taylor, chief financial officer, will present at the Goldman Sachs 21st Annual Communacopia Conference on September 19 at 10:30 a.m. EDT in New York City.
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Edited by Braden Becker