Equinix to Expand London Data Center
by Justin Hughes
LONDON, ENGLAND — Interconnection and data-center REIT, Equinix, Inc., has broadcasted its plan to expand the company’s London data center. In particular, $39 Million USD of investment will be made for expansion of the company’s LD4 IBX data center at its London Slough campus. The move will assist the company to address the growing demand from financial services companies. More specifically, the latest phase will sustain the expanding multi-asset class electronic trading ecosystem, comprising interconnected execution venues, trading platforms, market data vendors, service providers as well as buy-side and sell-side firms.
The expansion, which is expected to open in the fourth quarter this year, will create the addition of 1,075 cabinets in around 3,300 square meters of colocation area at the LD4 data center. At this time, LD4 has 3,777 cabinets, in about 10,000 square meters of colocation area. Customers will have the ability to securely interconnect with more than 1,000 businesses in London. These consist of capital market participants, insurers and electronic payments firms, in addition to the several network service providers, and cloud and IT service providers.
To more securely manage with ecosystem participants, the Nasdaq capitalizes on Equinix’s global interconnection platform and has utilized Equinix at LD4 in London and New York City. The private connectivity coordinates the sharing of huge data with multiple stakeholders via private business exchanges and securely avoiding the public internet entirely. Furthermore, in Europe, the interconnection bandwidth is anticipated to increase, reaching 1450+Tbps by 2020, as written in the Global Interconnection Index. Then, by 2020, Banking and Insurance is predicted to expand and reach 955+ Tbps of interconnection bandwidth. Private data exchange is also looking to grow in London and increase fourfold to 486 Tbps from 114 Tbps. With this information on hand, Equinix believes its expansion move is strategically advantageous.
Prior to this new initiative, Equinix teamed up with Telefónica’s infrastructure subsidiary, Telxius, to enhance the U.S. facilities and services for the next-generation cable landing station architecture, in a bid to support the MAREA and BRUSA cable systems. The change should simplify network design and offer Equinix’s customers improved access to the growing global subsea cable network. The recently-opened MAREA subsea cable is a joint project with Facebook and Microsoft, and the new cable is the highest capacity subsea cable system built across the Atlantic. In contrast, Telxius is creating BRUSA, a new subsea cable stretching, 6,800 miles, connecting Rio de Janeiro and Fortaleza, Brazil, with San Juan, Puerto Rico, and Virginia Beach, VA, USA.
With developments in cloud computing, Internet of Things and big data, and a growing number of companies opting for third-party IT infrastructure, data-center REITs like Equinix and Digital Realty are being given a boom market. Also, with the colossal rise in data, resulting from web browsing and e-commerce to streaming video and AI, there is a surge in new subsea cable construction. With all these points in mind, Equinix sees big growth ahead by utilizing strategic measures of data-center expansion, partnerships and buyouts.
For more on Equinix, check out earlier CapRE Insider Reports covering their latest activity as well as exclusive analysis from their leadership: