Equinix Expands Hong Kong’s Footprint with $124M Data Center Investment

Unlocking new cross-border GBA opportunities through Equinix's purpose-built data center in Hong Kong

Aug 12, 2024

HONG KONG – August 13, 2024 – Addressing the continued demand for high performance data centers in Hong Kong, Equinix, Inc. (Nasdaq: EQIX), the world’s digital infrastructure company^®, today announced an initial investment of $124 million for its purpose-built International Business Exchange™ (IBX^®) data center in Hong Kong. Named HK6, this new facility will be interconnected to Equinix’s five existing data centers, which serve as a hub for data and economic exchange between multinational enterprises, local and mainland Chinese companies in the Greater Bay Area (GBA).

Hong Kong is strategically located at the heart of Asia, making it a natural aggregation point for the region’s connectivity. Over the past year, the Equinix Internet Exchange^® traffic in Hong Kong has grown by almost 50%. This significant growth is a testament to the thriving digital landscape in Hong Kong, which is experiencing rapid expansion and development.

Joanne Hon, Managing Director, Equinix Hong Kong said: "We are thrilled to begin construction of our sixth data center in Hong Kong, as it represents a significant milestone in innovation and growth. HK6 will be Equinix's largest investment in Hong Kong in the past decade, further strengthening the city's digital infrastructure and showcasing our unwavering confidence in this dynamic market. This strategic investment solidifies Hong Kong's position as a crucial gateway for data exchange between China and the global community."

HK6 will be enabled to support the liquid cooling technology essential for supporting high-density, enterprise-grade AI workloads. With the significant growth of AI applications, traditional cooling methods often struggle to keep up with the heat generated by high-performance computing. Liquid cooling technology delivers an efficient solution by directly cooling the IT components that generate the most heat. By utilizing liquid cooling, Equinix can deliver optimal performance and reliability for AI infrastructure, enabling businesses to harness the full potential of AI without compromising on efficiency or scalability.

Like Equinix's other IBX data centers in Hong Kong, HK6 will be 100% covered by renewables. Equinix is on track to achieve climate neutrality by 2030, with a strong focus on incorporating clean renewable energy sources throughout its worldwide operations.

Highlights / Key Facts

Located in a building specifically built for data centers in Tsuen Wan, approximately 1.5 km from Equinix’s carrier-dense and ecosystem-rich campus of HK1, HK2 and HK3), HK6 will further enhance Hong Kong’s digital landscape as a prime destination for hyperscalers’ network edge and on-ramps. The facility also complements Equinix’s existing footprint in Shatin and Tseung Kwan O, creating a distributed network of facilities across the Western, Eastern, and Northern parts of Hong Kong to support business continuity strategies of both local and international enterprises.
Expected to open in Q1 2026, the first phase of HK6 will provide 1,000 cabinets. Upon completion, the 17-story data center will offer a total of 3,550 cabinets, catering to the expansion needs of cloud and financial service providers.
The GBA is comprised of 11 major cities with a combined gross domestic product (GDP) of approximately $2 trillion in 2023, presenting significant digital opportunities and a fertile ground for growth. Equinix is responding to these market dynamics by strengthening Hong Kong's position as a digital and strategic gateway to the GBA. By partnering with major Chinese telecommunications and global cloud service providers, Equinix is well positioned to be the super-connector to enable seamless cross-border connectivity for businesses operating in and out of China, facilitating their operations within the region and across the globe.
Equinix’s sustainability initiatives in Hong Kong, particularly its novel AI-driven approach to regulating temperature and optimizing energy management, support the Hong Kong government's Climate Action Plan 2050 to achieve carbon neutrality before 2050.¹ By reducing energy consumption by 5% and saving approximately 200MWh per site annually, Equinix’s efforts contribute to these goals, helping to lower carbon emissions and support Hong Kong’s transition to a sustainable, low-carbon future.
Today, the global footprint of Platform Equinix^® spans 264 data centers across 72 metros and 33 countries. In Asia-Pacific, Equinix currently operates 58 data centers in 15 key metros across Australia, China, Hong Kong, India, Japan, Korea, Malaysia and Singapore. Most recently, Equinix announced its market entry into the Philippines.

Additional Resources

About Equinix
Equinix (Nasdaq: EQIX) is the world’s digital infrastructure company^®. Digital leaders harness Equinix’s trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

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, risks to our business and operating results related to the current inflationary environment; foreign currency exchange rate fluctuations; stock price fluctuations; increased costs to procure power and the general volatility in the global energy market; the challenges of acquiring, operating and constructing IBX^® and xScale^® 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; 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; risks related to regulatory inquiries or litigation and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent and upcoming 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.

Equinix Media Contact (Asia-Pacific)
Annie Ho
annho@ap.equinix.com

Equinix Media Contact (Hong Kong)
Tweety Chan
tweety.chan@teamlewis.com

¹ https://www.info.gov.hk/gia/general/202110/08/P2021100800588.htm

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