Equinix Study finds that Canadian organizations’ expansion plans were significantly impacted by COVID-19

TORONTO, CANADA – May 11, 2021 – Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company™, today announced the findings of its annual global study of the views of IT decision-makers on the biggest technology trends affecting businesses worldwide and the impact of the COVID-19 pandemic on digital infrastructure plans.

Surveying 2,600 IT decision-makers from diverse enterprises across 26 countries in the Americas, Asia-Pacific and EMEA regions, the study reveals that in Canada:

• COVID-19 significantly halted Canadian organizations’ expansion plans as only 35% of respondents plan to expand into new regions, countries or metros this year, compared to 52% the previous year.
• More than half (52%) of digital leaders in Canada feel that further lockdown as a result of COVID-19 is the biggest threat to their organization. 
• Nearly half (46%) of digital leaders in Canada have accelerated their digital transformation plans as a result of COVID-19.
• Sustainability is becoming increasingly important for businesses, as 56% say their customers want companies to demonstrate the sustainability of their IT infrastructure.

Digital transformation in the post-pandemic future

Digitization and business investment in digital infrastructure have increased as a result of COVID-19. 46% of the digital leaders surveyed in Canada said they have accelerated digital transformation plans because of the pandemic, while 40% said their budgets have been increased to satisfy the rapid growth in digital demands.

There has also been a major overhaul of IT strategies to meet the challenges emerging from the pandemic. More than two-thirds (68%) said they have revised their IT strategy as a result of COVID-19, while 58% said they want to invest in technology to be more agile post-COVID.

Asked about their biggest priorities for their organization’s digital strategy, 77% of respondents cited migrating to the cloud was their top priority, followed closely by digitizing their IT infrastructure (75%) and improving cybersecurity (75%).

Of note, while 44% of digital leaders are less concerned about security threats within the cloud compared to 62% a year ago, almost half (47%) cite data leaks and cyber threats as a result of more user distributed devices as a major threat to their organization.

5G is Making Progress in Canada

• Respondents are more likely to say that Canada’s implementation of 5G is progressing well (42%), with only 17% believe the implementation is moving slowly.  
• Nearly half (49%) of digital leaders in Canada feel the biggest impact of 5G on their business will be allowing them to take advantage of new technologies like AI and IoT. This represents a significant increase compared to last year (38%).

Utilizing interconnection for success

• 65% of IT leaders said they believe interconnection — the direct and private exchange of data between organizations — will help them to navigate the challenges they face due to COVID-19.
• 60% believe interconnection is a key facilitator of digital transformation and that it will help their business gain competitive advantage.

Claire Macland, Senior Vice President, Global Marketing at Equinix, said: “Digital leaders around the world were clearly already working to accelerate their organizations’ digital transformation. This effort has been supercharged by COVID-19, as this study clearly relays.

“Many companies are now investing more in their digital infrastructure to enable them to embrace a hybrid working model and thrive in the new world of work we all find ourselves in. Despite headwinds in many sectors, many organizations are continuing to expand physically and virtually into new markets and regions around the world.

“This increasing focus on digitization and expansion is one of the reasons why Equinix has continued to invest in its own growth. We completed 16 new expansions in 2020—our most active build year ever—and expect to continue to evolve Platform Equinix to support our customers as they continue on their digital transformation journey.”

The Global Interconnection Index (GXI) Volume 4, a market study recently published by Equinix, forecasts that overall interconnection bandwidth—the measure of private connectivity for the transfer of data between organizations—will achieve a 45% compound annual growth rate (CAGR) from 2019 to 2023, globally. The expected growth is driven by digital transformation, and specifically by greater demands from enterprises extending their digital infrastructure from centralized locations to distributed edge locations.

To read more about the Global Tech Trends Survey, or download a copy, please visit: https://www.equinix.com/resources/infopapers/equinix-tech-trends-survey

Additional Quotes

• Jon Lin, President, Americas, Equinix:
  “Leaders around the world are more focused than ever on digitizing their organizations to respond to the challenges created by COVID-19. This study reaffirms that interconnection is at the core of these transformations. In the Americas, almost three-quarters of digital leaders believe interconnection will help navigate the challenges faced as a result of the pandemic, confirming interconnection has become business-critical to many enterprises and will continue to be so as we recover following this global crisis.”
   
• Andrew Eppich, Managing Director, Equinix Canada, said:
  “The pandemic has elevated the topic of digital transformation to a boardroom-level discussion as businesses across Canada and the world raced to digitize their operations like never before. As the future of work continues to evolve, businesses are taking on ambitious projects to ensure that people can work seamlessly and stay connected in the post-COVID-19 world.”

About the Study
The independent study, commissioned by Equinix, surveyed 2,600 IT decision-makers in diverse enterprises across the Americas (Brazil, Canada, Colombia, Mexico, U.S.), Asia-Pacific (Australia, China, Hong Kong, Japan, South Korea, Singapore) and EMEA (Bulgaria, Finland, France, Germany, Ireland, Italy, Netherlands, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, UAE, U.K.). Respondents were selected for participation from Dynata’s online panel. The survey was conducted online between 17 December 2020 and 08 January 2021.

About Equinix
Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today’s businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

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 data centers and developing, deploying and delivering Equinix products and solutions, unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; a 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; risks related to our taxation as a REIT; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent Equinix 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.

Media contacts

Michelle Lindeman (Americas)
+1 (650) 598-6361
mlindeman@equinix.com  

Jim Black (Canada)
+1 (416) 422-7151
jim.black@porternovelli.com

Investor Relations

Katrina Rymill
+1 (650) 598-6583
krymill@equinix.com

Chip Newcom
+1 (650) 598-6262
cnewcom@equinix.com