Digitally Mature Businesses in Europe are Expanding Digital Infrastructure 4x Faster Than Pre-Pandemic

AMSTERDAM, Netherlands, October 19, 2021 – The latest Global Interconnection Index (GXI Vol. 5), an annual market study published by Equinix, reveals that the pandemic has forced economies into digital overdrive, with digital leaders, businesses who were already implementing a digital-first strategy, moving four times faster than pre-pandemic levels. These businesses in the EMEA region have compacted the time to deploy their digital infrastructure to multiple regions, expand to multiple edge locations and integrate multiple clouds—what might have taken two years is now achievable within six months.

This accelerated pace of digital transformation is predicted to continue to fuel the rapid growth in interconnection bandwidth. According to the GXI Vol. 5, overall interconnection bandwidth, the measure of private connectivity for the transfer of data between organizations, is forecast to reach 5,327+ terabits per second (Tbps) in the EMEA region, making up 25% of global interconnection bandwidth, per year by 2024, representing a five-year compound annual growth rate (CAGR) of 46%. This growth is aligned with the increasing demand for the digital infrastructure needed to bring more businesses online, facilitate electronic integration with partners and supply chains, and reach more people in distributed hybrid work environments.

Additional Insights from GXI Vol. 5

• Core locations in EMEA are forecast to grow at a 45% CAGR to 3,994 Tbps, representing 75% of the regional forecast. Amsterdam and Frankfurt represent typical core markets with Network and Cloud access, with Amsterdam expected to grow at a 44% CAGR. Edge locations are expanding capacity 10% faster to support the growing need for local participation and maintain regional compliance.
   
• Close to 30% of enterprise infrastructure deployed in carrier-neutral facilities has moved to the edge, in proximity to points of data consumption. Service Providers are also expanding at the edge. They deployed 20% more digital infrastructure in EMEA (with higher growth rates) than other regions, replenishing headroom consumed for the pandemic. They are forecast to consume 64% of EMEA interconnection bandwidth (3,413 Tbps), with Network Service Providers alone making up 33% of the regional mix. This enables high Enterprise interconnection bandwidth growth rates and accelerated digital infrastructure growth.  
   
• Among industries in EMEA, enterprises are exceeding provider interconnection bandwidth growth rates, with Financial Services making up 50% of overall Enterprise interconnection bandwidth (18% of the regional mix).
   
• The Public Sector, Healthcare & Life Sciences, Industrial Services and Transportation industries are expected to experience the fastest digital infrastructure growth, which is forecast to drive a 48% or more CAGR in interconnection bandwidth from 2020 to 2024 globally. These industries that were previously lagging in interconnection adoption are now leading in interconnection growth rate as a result of the pandemic.

“While COVID has forced businesses to innovate in many ways, by both expanding existing and introducing new digital services, the infrastructure underpinning these services must keep pace,” said Claire Macland, Senior Vice President of Marketing, Equinix. “As a result, savvy businesses are now moving four times faster than pre-pandemic levels in deploying this necessary digital infrastructure.”

Michiel Eielts, Managing Director, Benelux, Equinix, added: “Data centers are an indispensable link in our digitally transforming economy, vertical markets and society. The highly connected hub embodied by the city of Amsterdam is where all of this comes together. The GXI Vol. 5 confirms forecasts that interconnection bandwidth capacity will grow by 46% annually in EMEA, and illustrates how digital leaders are using interconnection and distributed infrastructure to shape and scale the global digital economy. It is our mission and responsibility to support this growth in a sustainable manner, investing in efficiency measures for our data centers worldwide, including in Amsterdam. Our vision is to have the smallest possible impact on the environment and to use our resources as efficiently as possible.”

Additional Quotes

• Courtney Munroe, Research Vice President, Worldwide Telecommunications Research, IDC:
  “Companies that have adopted a comprehensive digital strategy as a core business pillar—connecting with and leveraging digital platforms with partners, ecosystems, and customers, consistently emerge as disruptive market leaders. Adopting digital platforms and services is essential to achieve the level of agility and resiliency that is required to outpace and out-innovate the competition.”
   
• Joachim Goyvaerts, Director, Benelux and Ireland, PayPal:
  “A pioneer in the digital payment industry, PayPal has evolved to become a trusted strategic partner to more than 400 million global users. Financial services need to move faster than ever and leverage a robust digital infrastructure to support their clients. Our comprehensive platform powers global commerce and provides exceptional payment experiences in a quick and convenient way, helping customers build a solid foundation for their services and growth.”

Additional Resources

• Global Interconnection Index Volume 5 [report]
• GXI Vol. 5 Blog Global [blog]
• GXI Vol. 5 Blog EMEA [blog]
• IDC – A Blueprint for DX Success—Start with Hybrid Infrastructure and Connected Ecosystems [report]
• The Future of Digital Leadership [report]

About Equinix
Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company^TM, 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. Equinix 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, including statements about the speed of digital infrastructure expansion and the growth rate of interconnection bandwidth. Actual results may differ materially from expectations discussed in such forward-looking statements and the predictions made in the Global Interconnection Index. Factors that might cause such differences include 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.

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