Equinix and PGIM Real Estate, PGIM's real estate investment and financing arm, have entered into a $600 million joint venture to develop and operate the first xScale data center in the U.S., located in California’s Silicon Valley region.
The data center provider’s SV12x International Business Exchange™ (IBX®) is a two-story facility built in two phases. It is expected to provide more than 28 megawatts (MW) of power capacity at full build-out. SV12x is located at Equinix's Great Oaks data center campus in San Jose, California, alongside four existing Equinix International Business ExchangeTM (IBX®) data centers. The facility's first phase is scheduled for this year's second quarter.
Equinix and PGIM are hardly strangers. This agreement represents Equinix's second joint venture with PGIM Real Estate. In 2021, the two companies launched a $575 million joint venture to extend a hyperscale data center program into Australia.
Combined with Equinix's existing hyperscale joint ventures in Europe, Asia-Pacific, and elsewhere in the Americas, this new joint venture will bring the global xScale data center portfolio to more than $8 billion across more than 35 facilities and an expected greater than 725 megawatts of power capacity when completed and fully constructed.
Equinix xScale data centers enable hyperscale companies to add core deployments to their existing access point footprints at Equinix IBX data centers, enabling their growth on a single platform that can immediately span more than 70 global metros and offer direct interconnection to an ecosystem of more than 10,000 customers.
PGIM Real Estate will control an 80% equity interest in the joint venture, and Equinix will own the remaining 20% equity interest.
Data centers have become a growing focus for PGIM, having started investing in the sector in 2013. This latest joint venture agreement with Equinix marks the first investment made through PGIM Real Estate's dedicated global data center strategy, managed by third-party clients, to invest exclusively in hyperscale facilities across internet gateway markets in the U.S., Europe, and Asia-Pacific.
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