Equinix and PGIM Real Estate, the real estate investment and financing arm of PGIM, have announced the opening of Sydney’s first xScale data center, SY9x.
This milestone follows the closing of the $575 million joint venture between the parties in March 2022.
The Australian cloud computing market is expected to grow by 12.5% to $14.1 billion by 2025, supported by large-scale digital transformation initiatives in both the public and private sectors.
Additionally, according to the Global Interconnection Index Volume 5 (GXI Vol. 5), a market study announced by Equinix, Sydney is projected to have a 43% compound annual growth rate (CAGR) for private enterprise interconnection to the cloud and IT providers between 2020- 2024, which is one of the highest in the Asia-Pacific region.
The first of two data centers to be developed and operated under the joint venture with PGIM Real Estate, SY9x currently offers more than 14 MW of power capacity and will deliver more than 28 MW when fully built to meet cloud demand – business-to-business platforms and services in Australia, the companies say.
Commenting on the opening of SY9x, the Minister for Business, Investment and Commerce, Minister for Tourism and Sport, and NSW Minister for Western Sydney Stuart Ayres commented: “Western Sydney is a fast-growing region with great opportunity and potential, and offers a diverse and dynamic economic center.
“This first hyperscale data center under the US $575 million joint venture of Equinix and PGIM Real Estate provides essential digital infrastructure to the world’s largest cloud service providers and helps create jobs in our local communities.
“With unprecedented levels of cloud adoption further accelerating digital transformation in Australia, the decision to locate its first xScale data center in Western Sydney illustrates the enormous enthusiasm of multinational companies to invest in our growing city.”
By deploying in Equinix xScale data centers, hyperscale companies can add core deployments to their existing access point footprints in Equinix International Business ExchangeTM (IBX) data centers, enabling them to grow on a single platform that immediately supports 70 global metros. Can span and provide direct interconnection to an ecosystem of more than 10,000 customers.
After construction, the second xScale facility, SY10x, will provide more than 28 MW of power capacity. When fully built, the two xScale facilities will offer more than 55 MW combined.
In Australia, Equinix and HSBC Bank, Nike Australia, Goldman Sachs, and Hennes & Mauritz (H&M) have received approval from the Australian Competition and Consumer Commission (ACCC) for joint renewable energy procurement. PGIM Real Estate owns 80% equity interest in the joint venture, while Equinix owns the remaining 20%. Equinix will be responsible for the operation of the hyperscale data centers.
Morgan Laughlin, Global Head of Data Center Investments at PGIM Real Estate, said: “Since 2013, PGIM Real Estate has been investing in the vibrant and growing data center sector; we are delighted to open our first hyperscale data center in Australia in partnership with Equinix.
“PGIM Real Estate expects to expand its investments in the global digital infrastructure sector. We view our co-investment relationship with Equinix as an extremely important part of that strategic effort. In line with PGIM Real Estate’s strong commitment to sustainable building practices and Reducing global carbon emissions, we are looking for opportunities to use renewable energy for our assets and increase our investments in the renewable energy sector in tandem with the increasing focus on data centers.”
Guy Danskine, managing director of Equinix Australia, said: “To meet the increasing demand for cloud and digital infrastructure, the opening of our first xScale data center in Australia and the continued expansion of our International Business Exchange data center capacity in the nation that more and more organizations can implement their digital-first strategies.
“This infrastructure enables our customers to scale their operations, deliver exceptional customer experiences, and unlock the value of artificial intelligence, machine learning, 5G, and other emerging technologies.”
