Digital infrastructure developer Equinix has formed a joint venture (JV) worth over US$15 billion with Singapore wealth fund GIC and Canada Pension Plan Investment Board (CPP Investments).
The partnership, aimed at expanding Equinix's xScale data centre portfolio, will focus on hyperscale data centres to meet increasing demand driven by the growth in artificial intelligence (AI) and cloud innovations.
CPP Investments and GIC will each hold a 37.5% equity stake while Equinix takes the remaining 25%. This marks Equinix’s first JV with CPP Investments, although it has a history of successful partnerships with GIC in Asia, Europe, and the Americas.
The JV move cements Equinix's position as a major player in global digital infrastructure, especially as the Asia-Pacific region continues to grow in importance for hyperscale data centre development.
The capital raised will support the development of new data centres across the United States, adding over 1.5 gigawatts of capacity.
Equinix's existing hyperscale portfolio in Asia-Pacific and other regions has already attracted over US$8 billion in investments. With Asia playing a crucial role, the new JV will build on Equinix's momentum in the region, strengthening global digital infrastructure networks.
Equinix says its data centres meet high sustainability standards, including LEED certification.
“We are proud to expand our years-long partnership with Equinix, addressing a massive and growing demand for digital infrastructure, driven by the rapid advancement of technology, including AI,” says Goh Chin Kiong, GIC’s chief investment officer for real estate.
“GIC’s capital and scale, paired with Equinix’s operational expertise, has driven meaningful value across our investments together. Through this joint venture, we look forward to providing the funding needed to develop state-of-the-art digital infrastructure across the US, alongside our like-minded partner, CPP Investments,” adds Goh.
The deal is expected to close in late 2024, pending regulatory approval.