Equinix invests $55m to build its third data center in Osaka, Japan
Equinix, the world's digital infrastructure company, announced an initial investment of $55 million to build its third International Business Exchange (IBX) data center in Osaka, Japan. To be named OS3, the new facility will further expand Equinix's footprint and enable local and global businesses to harness Platform Equinix to bring together and interconnect the foundational infrastructures that power their success.
Osaka is home to the second-highest concentration of businesses in the country and has become a hub for startup companies and innovation. It is gearing up to become Japan's next international financial center and drive the growth of the digital economy. With numerous businesses related to energy, healthcare and medical services, and manufacturing, Osaka has evolved to become a prime location for data centers in Japan, the second largest following Tokyo.
OS3 will offer close proximity to major internet and peering exchanges and a vibrant ecosystem of network, cloud and digital content providers. It will also offer direct, low-latency connections to the large Kansai region, which consists of major cities including Osaka, Kyoto and Kobe. This will allow digital leaders to leverage OS3 to scale and utilize digital infrastructure for optimal performance. OS3 is scheduled to open in Q4 2021. The first phase of OS3 is expected to provide an initial capacity of 900 cabinets and more than 33,000 square feet (approximately 3,070 square meters) of colocation space. At full buildout, the facility will provide 2,500 cabinets with a total colocation space of approximately 89,340 square feet (more than 8,300 square meters).
Directly connected to the Equinix data center campus in Osaka, OS3 will provide a wide range of interconnection solutions, including Equinix FabricTM— formerly Equinix Cloud Exchange Fabric. Through this on-demand, SDN-enabled interconnection service, businesses can connect between their own distributed infrastructure and any other company's distributed infrastructure, including some of the world's largest network service and cloud providers on Platform Equinix. Customers in Osaka can establish direct and secure access to cloud providers such as Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure, Google Cloud, etc., to address their rising needs of hybrid multicloud infrastructure.
Currently offering approximately 64,500 square feet (6,000 square meters) of colocation space in Osaka, the Equinix Osaka campus consists of two IBX data centers and serves as a business hub for more than 130 companies. Customers can choose from a broad range of network services offered by over 25 network service providers. With Platform Equinix, companies in the Kansai area can bring together all the right places, partners and possibilities to create the foundational infrastructure they need to succeed.
Demand for digital infrastructure continues to grow on a local and regional scale. According to the Global Interconnection Index Volume 4 (GXI Vol.4), a market study published by Equinix, Cloud & IT Services are expected to lead the growth in the Asia-Pacific region, reaching an anticipated 1,374 Tbps by 2023. This puts this sector's growth in Asia-Pacific at 29%, higher than the next largest region, North America. Earlier this year, Equinix announced its intention to form a joint venture with GIC to develop and operate hyperscale data centers in Japan. The three initial facilities in the joint venture, one in Osaka and two in Tokyo, will serve the unique core workload deployment needs of a targeted group of hyperscale companies, including the world's largest cloud service providers.
Today, the global footprint of Platform Equinix spans more than 220 IBX data centers across 63 metros, providing digital infrastructure for more than 10,000 of the world's leading businesses. In Asia-Pacific, Equinix currently has 46 IBX data centers in key metros across Australia, China, Hong Kong, Japan, Korea and Singapore. Equinix has a national footprint of 13 IBX data centers across Tokyo and Osaka in Japan.
Mimei Ito, Research Manager, IT Services, IDC Japan: "With the rising adoption of digital transformation, together with the acceleration of advanced technology such as AI and IoT, we are expecting a strong growth of demand for digital infrastructure in Japan, despite the short-term economy slowdown amid COVID-19. As the service level of digital infrastructure directly impacts the quality of user experiences, the expansion of the Equinix data center in Osaka reflects a rapid increase in the deployment of digital workloads among enterprises and their customers in Japan's second-largest metropolitan area. This is expected to accelerate further through enhanced interconnectivity of cloud ecosystems."
Jeremy Deutsch, President, Equinix Asia-Pacific: "Digitalization is no longer just an option, but a prerequisite for businesses to succeed. Equinix has always been committed to delivering a single platform which creates the foundational infrastructure to support customers' evolving needs for digital infrastructure. Our expansion in Osaka marks another key milestone in our ongoing plans to deliver Platform Equinix to more businesses in the fast-growing Asia-Pacific region. With our world-class infrastructure and solutions, we will continue to be the trusted partner of digital leaders by enabling them to seize the opportunity with agility, speed and confidence."
Kuniko Ogawa, Managing Director, Equinix Japan: "As a large metropolitan area with many global and locally based enterprises, Osaka has emerged as a significant market. In the past years, we have seen rising demand for secure, high-performance, and low-latency connectivity in the Kansai area. With our planned OS3 IBX data center, backed by our global footprint and vast array of services offered on Platform Equinix, we are set to expand our ability to bring together and interconnect the infrastructure that businesses need to fast-track their digital advantage."