Equinix builds US$63m second data center in Hong Kong

Tags: data center, Equinix, Hong Kong, investment

Equinix announced Monday a plan to build a second data center with a total capacity for more than 1,450 cabinet equivalents. 

The company said the HK$491 million (US$63 million) facility is targeted for opening in the third quarter of the year, adding that the first phase of the data center will offer an initial 450 cabinet equivalents. 

The new facility, dubbed HK2 International Business Exchange, will be in Tsuen Wan and have direct fiber connection to its existing HK1 data center, Equinix added. 

The two-phase HK2 project is the fourth in a series of recently announced data center expansions in the Asia Pacific, said Steve Smith, CEO and president at Equinix. The other recently announced projects include data center expansion in Sydney, the third phase expansion of a data center in Singapore, and a co-location service partnership with China-based SI Shanghai Data Solutions in Shanghai. According to Smith, the company expects to spend about US$240 million on data centers in Asia between 2010 and 2011.

Despite a key trend in today's data center business, Smith said that cloud makes up less than five percent of the Equinix' revenues. "Cloud's still at an early stage, but it's growing fast," said Smith. "We were able to attract around 170 cloud firms to deploy in our facilities in the past 18 months. Salesforce, HP, IBM, Amazon, and Microsoft are our cloud customers." 

"HP's an interesting case that shows huge cloud potential for us," said Smith. "HP has about 220 data centers worldwide, but uses our facilities and services that allow them to easily reach different markets for many of their cloud offerings."

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