May 28, 2019
US$77 Million Investment to Expand Platform Equinix in Hong Kong
Supporting digital edge and business continuity strategies with additional capacity and geographical diversity
HONG KONG – May 29, 2019 – Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that it is expanding two of its International Business Exchange™ (IBX®) data centers in Hong Kong with a total investment of US$77 million (approximately HK$604 million). Following the expansions, Equinix will have distributed facilities across the Western, Eastern and Northern parts of Hong Kong, supporting the digital edge and business continuity strategies of enterprises.
The robust network infrastructure, reliable energy supply, safety from natural disasters and geographical proximity to mainland China continue to drive demand for data centers in Hong Kong. In addition, the city’s thriving financial services industry is increasingly demanding data center services due to stringent industry requirements around security and resilience.
According to the second annual Global Interconnection Index (the "GXI"), a market study published by Equinix that analyzes traffic exchange globally, Hong Kong is expected to see the fastest Interconnection Bandwidth growth in Asia-Pacific, growing at a 55% compound annual growth rate (CAGR) by 2021. The Banking & Insurance industry is even anticipated to experience solid growth in Interconnection Bandwidth at 79% CAGR in the same time period.
Shenzhen iAppPay Information Technology Co., Ltd. (iAppPay), a mainland China-based payments company which provides payment solutions for over 260 million end users and businesses, including WeChat Pay, Alipay, UnionPay, VISA and Mastercard, has chosen Equinix IBX data centers in Hong Kong to support the growth of cross-border payments driven by Chinese outbound travelers.
- Through the expansions of the HK2 and HK4 IBX data centers, Equinix will add a total of 1,500 cabinets of capacity, bringing an additional colocation area of nearly 4,800 square meters (equivalent to approximately 51,400 square feet). HK2 expansion was completed in March, while HK4 is expected to complete in Q3 2019.
- HK4 – new location in Hong Kong
- Located in Sha Tin, the second phase of HK4 provides a new location option in Hong Kong for customers. The geographic diversity will further enhance the interconnection provided by Equinix, ensuring that users benefit from distributed infrastructure that is connected securely and dynamically to provide a seamless experience.
- The US$34 million (approximately HK$266 million) investment in HK4 phase 2 will add 500 cabinets of capacity and approximately 1,500 square meters (equivalent to more than 16,000 square feet) of colocation space.
- HK2 – the largest IBX in Hong Kong
- With an investment of US$43 million (approximately HK$338 million), HK2 phase 5 added 1,000 cabinets of capacity and approximately 3,300 square meters (approximately 35,400 square feet) of colocation space, making it Equinix’s largest IBX facility in Hong Kong.
- Located in Tsuen Wan, midway between the Hong Kong International Airport and the central business district, HK2 is within walking distance of HK1 and HK3 and has diverse path fiber connections to the other four IBX data centers in the city.
- With the addition of the new phases, the five IBX data centers of Equinix will have a total colocation space of about 31,300 square meters (equivalent to approximately 323,400 square feet), increasing by 17%.
- Equinix Hong Kong data centers are business hubs for more than 505 companies. Equinix customers can interconnect directly to other customers and partners in their digital supply chain, including a dense concentration of more than 80 networks, more than 125 cloud and IT service providers, and over 140 financial services, including iAppPay.
- Founded in 2010, iAppPay is the first aggregation payment cloud platform in China. Amidst the double-digit growth of China outbound tourism, the company was looking for a scalable solution and global platform to support the growing volume of cross-border payment transactions. Through secure and low-latency interconnection with its customers, partners and service providers on Platform Equinix®, iAppPay is able to deliver smooth and seamless payment transactions for customers.
- Luo Tao, Operation Director, Shenzhen iAppPay Information Technology Co., Ltd.
“Processing digital transactions has become more and more complex and dynamic with hundreds of thousands of new banking products and payment technology. Platform Equinix allows us to interconnect with our partners, service providers and customers via secure and high-performance direct connections. Equinix’s unique payment ecosystem truly supports our global business expansion and removes all the complexity facing our company.”
- Larry Tam, Managing Director, Equinix Hong Kong
“Hong Kong is a key gateway to mainland China and home to many headquarters of global corporations. This generates substantial demand for secure data center services to support business expansion in the region. By establishing distributed digital edge control points within Equinix colocation data centers, companies which are focused on growth - like iAppPay - can accelerate and scale their digital transformation, integrate and control business processes, and better fortify their digital assets with a high-speed and low-latency interconnection.”
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most interconnected data centers. On this global platform for digital business, companies come together across more than 50 markets on five continents to reach everywhere, interconnect everyone and integrate everything they need to create their digital futures. Equinix.hk
This press release contains forward-looking statements 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 data centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to 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; the loss or decline in business from our key customers; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent Equinix 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.
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