- Equinix Inc. has formed a joint venture with the Canada Pension Plan Investment Board (CPP) and Singapore’s GIC to develop new data centers, aiming to raise over $15B.
- The joint venture is set to develop facilities with over 1.5 gigawatts of new capacity, supporting the growing demand for ‘hyperscale’ data centers.
- Equinix, the largest REIT focused on data centers, will own 25% of the joint venture, while CPP and GIC will each hold a 37.5% stake.
Equinix Inc. (EQIX), the world’s largest REIT specializing in data centers, announced the formation of a major joint venture with the Canada Pension Plan Investment Board (CPP) and Singapore’s GIC Pte.
Expanding Horizons
According to Bloomberg, this strategic move aims to expand the JV’s ‘hyperscale’ data center footprint globally, with more than $15B in projected capital for new development.
Redwood City-based Equinix plans to use the joint venture to purchase land and develop new facilities, eventually providing more than 1.5 gigawatts of new data center capacity.
This expansion reflects the growing need for data storage and processing power, driven largely by the rise of AI and digital transformation across industries.
Ownership Breakdown
In this joint venture, CPP and GIC will each hold a 37.5% stake, while Equinix retains the remaining 25%.
This partnership further solidifies the relationship between Equinix and GIC, which has previously collaborated on data center projects, along with other large investors like PGIM.
Meeting Growing Demand
The demand for data centers is on the rise due to the explosion of AI and cloud services. Executives across various sectors have emphasized the need for more robust data infrastructure, as well as sufficient energy to support this growth.
The hyperscale facilities developed through this joint venture will cater to these expanding needs, enabling hyperscale cloud service providers to meet the increasing data requirements.
Why It Matters
As a REIT with a market cap of approximately $84B, Equinix is well-positioned to capitalize on the proliferation of data centers that power AI and digital ecosystems. The partnership with CPP and GIC will ensure access to substantial capital and resources, accelerating the pace of new developments.
With more than $15B to be raised, Equinix, CPP, and GIC are set to add significant capacity for hyperscale customers. Given the current trajectory, demand for such facilities is only expected to grow.
