March 15, 2011
Equinix To Open Fourth IBX Data Center in Paris (UPDATED March 17, 2011)
REDWOOD CITY, Calif. & PARIS—March 15, 2011 (UPDATED March 17, 2011)—Equinix, Inc. (NASDAQ: EQIX), a leading provider of global data center services, today announced that it is constructing a fourth International Business Exchange™ (IBX®) data center in the Paris metropolitan area. The new data center (PA4), scheduled to open in the third quarter of 2012, will further extend Platform Equinix in Europe to meet strong demand for premium interconnection and colocation services in Paris and across the region.
The location of PA4, near the center of Paris, will be highly attractive to customers, particularly as future data center developments are expected to face long lead-times to secure power in and around the city. Equinix has experienced sustained growth for its data center services in Paris, with the first phase of its PA3 IBX center, which opened in April 2010, now effectively full, and the second phase, due to open in the second quarter of 2011, expected to be full by the time the new PA4 center opens. Equinix customers are already recognizing PA4’s strategic importance in their long-term data center plans, with 20 percent of the space available in the first phase already sold.
“Paris is a growing market for Equinix due to its strategic location in the world economy and the superior performance of our data center design and operations. We continue to invest in Paris, and across Europe, to keep pace with the strong demand we’ve seen in this market,” said Eric Schwartz, President, Europe, at Equinix. “The new Paris IBX is an important addition that will support our growing base of network, financial, content, enterprise, and cloud and IT services customers and will further extend our leadership position in the European market.”
As with the other IBXs in Paris, PA4 will benefit from a high level of carrier connectivity combined with the Equinix Carrier Ethernet Exchange and Equinix Internet Exchange™, making PA4 an ideal place to procure bandwidth and optimize network performance. It will be built out in phases, eventually adding a total of more than 11,000 square meters of space and more than 4,500 cabinet equivalents, positioning Equinix to be the leading data center provider in the French market. The first phase of the project, which will provide more than 1,500 cabinet equivalents when complete, is expected to cost approximately $145 million (the majority of which will be used to purchase the site and support the development of all three phases), with much of the investment occurring in 2012. The facility will be built using the latest energy efficient technologies and meet ISO9001 certification.
The company’s previously provided capital expenditures guidance of between $400 and $500 million in 2011 includes the forecasted 2011 spending for this expansion.
Equinix, Inc. (Nasdaq: EQIX) connects businesses with partners and customers around the world through a global platform of high performance data centers, containing dynamic ecosystems and the broadest choice of networks. More than 3,275 enterprises, cloud, digital content and financial companies connect to more than 625 network service providers and rely on Platform Equinix to grow their business, improve application performance and protect their vital digital assets. Equinix operates in 35 strategic markets across North America, Europe and Asia-Pacific and continually invests in expanding its platform to power customer growth. http://www.equinix.com
Forward Looking Statements
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 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’s filings with the Securities and Exchange Commission. In particular, see Equinix’s recent 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.