REDWOOD CITY, Calif. and AMSTERDAM, April 23, 2019 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that it has closed a transaction for the purchase of Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands, in an all-cash transaction for €30 million ($34 million). The facility, which will be renamed Equinix AM11 International Business Exchange™ (IBX®) data center, is in close proximity to Equinix's existing campus in southeast Amsterdam and will help meet growing demand for digital infrastructure connectivity in the Amsterdam and broader European markets, as businesses continue to build out their digital edge strategies.
The agreement was signed on April 16, 2019, and the acquisition was completed on April 18, 2019.
Highlights / Key Facts
AM11 becomes the 11th Equinix IBX data center in the Netherlands and the ninth Equinix IBX located in Amsterdam. The data center is a leased asset and adds approximately 250 cabinets of sold capacity and a total capacity for approximately 700 additional cabinets once the facility is completely built out. The site can also support the potential to expand into an adjacent building to accommodate future growth and approximately 1,300 additional cabinets.
Equinix's southeast Amsterdam campus includes AM1, AM2, AM5 and AM7. The AM11 data center will be tethered to Equinix's AM7 data center, enabling customers to easily interconnect with the world's largest business ecosystems available on Platform Equinix® for maximum collaboration across digital supply chains. AM11 currently has a customer mix that maps closely to Equinix's existing base including networks, cloud service providers and content and digital media companies.
Private connectivity between enterprises, strategic cloud service providers and network services is essential as digital transformation fuels higher demand for localized digital services at the edge. According to Volume 2 of the Global Interconnection Index, a market study published by Equinix, the capacity for private data exchange between enterprises and cloud and network service providers is forecast to grow nearly 10 times faster than public internet traffic by 2021.
Equinix's Netherlands IBX data centers are business hubs to more than 1,125 companies that connect to business partners and customers across their digital supply chains. Equinix in the Netherlands is home to many thriving, diverse business ecosystems, including:
Europe's electronics payments and e-commerce ecosystems, which operate at Equinix to leverage excellent broadband connections to the rest of the world, as well as connections to many global submarine cable networks
ISPs, telecommunications carriers, content providers and hosting services from all over the world, via connections to the AMS-IX, Equinix IX and NL-IX in Equinix's Amsterdam colocation facilities
International enterprises that want to take advantage of the Netherlands' high-speed connections to the rest of Europe: typical latency from the Netherlands to London, Paris and Frankfurt is less than 50 milliseconds
Businesses in the Netherlands can access leading cloud service providers such as Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure and Google Cloud, which are available on Equinix Cloud Exchange Fabric™ (ECX Fabric™). As Equinix offers direct access to the highest concentration of major cloud provider onramps in the world, ECX Fabric is ideally suited to solve customers' multicloud network connectivity challenges.
Today, Equinix operates 200 IBX data centers in 52 markets, providing customers even more ways to connect with other businesses around the world on Platform Equinix.
Peter van Burgel CEO, AMS-IX: "The Netherlands and especially the Amsterdam Metropolitan Area is a top destination for global businesses looking to expand into Europe. There is access to a highly educated and multilingual workforce and a state-of-the art technology infrastructure to meet the digital needs of these businesses. As AMS-IX, we see businesses are demanding more data center capacity and interconnectivity. As a longstanding customer and partner of Equinix, AMS-IX is very excited to continue to contribute to the growing needs and support the rapidly growing digital economy."
Eugene Bergen, President, EMEA, Equinix: "Amsterdam is a key interconnection point for Europe, with leading enterprises and cloud service providers making it a primary hub for IT infrastructure. Adding interconnection capacity in this market enables local and international customers to leverage Platform Equinix to meet their changing business needs. Whether that is to connect to networks, clouds, or content and digital media providers, Equinix is the place to be."
About Equinix Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most-interconnected data centers. On this global platform for digital business, companies come together across more than 50 markets on five continents to reach everywhere, interconnect everyone and integrate everything they need to create their digital futures. www.equinix.com.
Forward Looking Statements This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from expectations discussed in such forward-looking statements, including statements related to the acquisition of Switch Datacenters Group B.V.'s AMS01 data center business in Amsterdam southeast, in the Netherlands and the expected benefits from the acquisition. Factors that might cause such differences include, but are not limited to, unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix, including the Switch data center; the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.