Equinix reported Q2 2019 revenue of $1.385 billion, up 10% over the same period last year and up 2% over the previous quarter. Net income and net income per share attributable to Equinix amounted to $144 million, a 22% increase over the previous quarter, or $1.69 per share.
Charles Meyers, President and CEO, Equinix stated: “Equinix had another strong quarter, as it continues to deliver distinctive and durable value for customers pursuing their digital transformation initiatives. As a variety of trends are making global businesses think differently about their infrastructure, Equinix is responding by both investing across its traditional strengths and layering in incremental capabilities that make it an easier-to-use, more accessible global platform. We see a large and expanding market opportunity, and we believe Equinix is uniquely positioned to capture this opportunity as customers prioritize digital transformation and adopt hybrid and multicloud as their architecture of choice.”
Equinix partners with Singapore’s GIC on xScale Data Centers in Europe
Equinix has formed a joint venture with GIC, Singapore’s sovereign wealth fund, to develop and operate xScaleTM data centers in Europe. The joint venture is initially valued at over $1 billion.
Equinix said initial facilities in the joint venture will serve the unique core workload deployment needs of a targeted group of hyperscale companies, including the world’s largest cloud service providers. The facilities will be located on or proximate to some of Equinix’s existing IBX campuses.xScale data centers will be managed and staffed by Equinix while ensuring seamless connectivity to the Equinix global platform, providing a consistent experience for the hyperscale companies.
Equinix cites two ways in which the new xScale data centers will provide hyperscale companies a differentiated value proposition from existing wholesale data center operators in two key areas:
xScale data centers will offer access to Equinix’s comprehensive suite of interconnection and edge services. These services will tie into the hyperscale companies’ existing access points at Equinix, thereby increasing the speed of connectivity to their existing and future enterprise customers.
xScale data centers will be engineered to meet the technical and operational requirements and price points of core hyperscale workload deployments. This enables hyperscale companies to consolidate core and access point deployments into one global provider to streamline and simplify their rapid growth.
Equinix has been working for years with hyperscale operators, including Alibaba Cloud, Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure and Google Cloud. Currently, global deployments from the top hyperscale companies exceed $500 million in annual revenue at Equinix, with interconnection-rich retail deployments representing the most rapid growth segment of their deployments.
Under the deal, GIC will own an 80% equity interest in the joint venture and Equinix will own the remaining 20% equity interest. Equinix will sell both its London LD10 (retaining part of that business under a lease back) and Paris PA8 IBX data centers and the associated leases, as well as certain other development interests, to the joint venture. A significant portion of London LD10 and Paris PA8 are already leased.
The cmpanies envision additional new xScale data centers in Amsterdam, Frankfurt (two sites) and London. These initial six facilities, when fully built out, will provide approximately 155 megawatts (MW) of power capacity.
