Equinix invests $604m to expand two Hong Kong data centres

The expansions will see the firm adding 1,500 capacity cabinets.

Global data centre company Equinix, Inc. is expanding two of its International Business Exchange (IBX) data centres in Hong Kong with a total investment of approximately $604m (US$77m), an announcement revealed.

Following the expansion, Equinix will have distributed facilities across the Western, Eastern and Northern parts of Hong Kong.

Also read: Investors pool cash into data centres and co-living as alternative assets shine
https://hongkongbusiness.hk/commercial-property/in-focus/investors-pool-cash-data-centres-and-co-living-alternative-assets-shine

Through the expansions of the HK2 and HK4 IBX data centres, Equinix will add a total of 1,500 cabinets of capacity, bringing an additional colocation area of nearly 4,800 sqm. The HK2 expansion was completed in March, whilst HK4 is expected to be completed by Q3 2019.

Located in Sha Tin, the second phase of HK4, which saw an estimated $266m (US$34m), will add 500 cabinets of capacity and approximately 1,500 sqm of colocation space.

Meanwhile, the fifth phase of HK2 in Tsuen Wan, which is said to be the largest IBX in Hong Kong, saw investment of $338m (US$43m) which added 1,000 cabinets of capacity and approximately 3,300 sqm of colocation space.

“With the addition of the new phases, the five IBX data centers of Equinix will have a total colocation space of about 31,300 sqm, increasing by 17%,” the firm highlighted.

“Hong Kong is a key gateway to mainland China and home to many headquarters of global corporations. This generates substantial demand for secure data center services to support business expansion in the region,” Larry Tam, managing director of Equinix Hong Kong, said.

According to the second annual Global Interconnection Index (GXI), a market study published by Equinix that analyses traffic exchange globally, Hong Kong is expected to see the fastest interconnection bandwidth growth in Asia-Pacific (APAC), growing at a 55% compound annual growth rate (CAGR) by 2021. The banking & insurance industry is even anticipated to experience solid growth in interconnection bandwidth at 79% CAGR in the same time period.