Infotech Lead Asia: Data center players are on an expansion spree. Equinix has opened its newest data center in Shanghai (SH5).
The new center will address the demand premium data center services in China from global customers looking to expand in the market.
Following the $230.5 million acquisition of Asia Tone in July 2012, Equinix gained a total of six data centers and one disaster recovery center located across Hong Kong, Shanghai and Singapore, including SH5.
The first phase of SH5 will provide 200 cabinet equivalents, expanding to 900 with a gross area of 80,000 square feet when all three phases of SH5 are completed. With its experience serving multinational customers worldwide, Equinix is uniquely positioned to provide the same high-performance premium colocation services in China that its customers have come to expect.
“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, Equinix 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 result in demand in the market for data center services that deliver high-performance and availability.
Frost & Sullivan recently said 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.
The SH5 data center offers premium data center services including colocation and Smart Hands services. Equinix will provide its customers with 24×7 support and installation assistance.
In addition to the recent acquisition of Asia Tone, Equinix also announced the completion of the second phase of its second Hong Kong data center, taking the total capacity at HK2 to 1,450 cabinets.