Home Data Centres Equinix expands Aussie data centre footprint to meet 'rising customer demand'

Equinix expands Aussie data centre footprint to meet 'rising customer demand'

To "accelerate interconnection opportunities", data centre experts Equinix reports meeting customer demand with "continuous investment in Melbourne and Sydney data centre expansions".

In response to "increasing customer momentum", Equinix says it is "expanding its Australian footprint by adding additional capacity in its International Business Exchange data centres in Melbourne (ME1) and Sydney (SY4)".

The company said the expansion in Melbourne "will add 374 new cabinets, creating a total capacity of 1500 cabinets, and is expected to be completed in Q3 of this year".

In addition, "the completion of the Sydney data centre (SY4) expansion doubled the capacity of the data centre to a total of 3000 cabinets. SY4 also allows Equinix customers to take advantage of global connections via subsea cables, including the Southern Cross Cable Head, PIPE Pacific Cable network and the Hawaiki cable".

The announcement follows Equinix's news from December 2017 that it will acquire Metronode’s data centre operating business in Australia, which expanded the Equinix national footprint by adding 10 data centres.

We're told this will bring the company's total IBX data centre footprint in Australia to "15 data centres, further extending its global ecosystem coverage and enabling customers to deploy their infrastructure, applications and services closer to the edge".

In addition, this extension of the Equinix data centre footprint in Australia "increases networking capabilities for current customers while providing additional options for other service providers and enterprises needing to satisfy the interconnection demands of the growing digital economy".

The Global Interconnection Index, published by Equinix, "predicted Interconnection Bandwidth will grow fourfold across the Asia-Pacific region by 2020, while Sydney alone is expected to grow at a compound annual growth rate of 44% during the same period".

We're told "this explains why Sydney was one of 20 metropolitan areas that accounted for almost 60% of global retail and wholesale colocation revenues during the third quarter of 2017", according to data from the Synergy Research Group

Some "key facts" provided by Equinix are as follows:

  • The final expansion of the Melbourne data centre, known as ME1, adds 375 new cabinets to the facility. Upon completion, which is scheduled for Q3 2018, ME1 will have a total capacity of 1500 cabinets.

  • The A$13.3 million investment in ME1 follows rising demand from customers to enter the Port Melbourne data centre, located 2.5 kilometres from Melbourne’s Central Business District. There are more than 30 network service providers available in Equinix ME1 from a diverse ecosystem of customers including cloud service providers and enterprises belonging to a range of industries including healthcare and financial services.

  • The second phase of Equinix Sydney data centre, SY4, is also complete. With an investment of approximately A$52.3 million the expanded capacity will meet the rising demand for additional capacity and interconnection services. The expansion doubled the data centre’s capacity from 1500 cabinets to 3000, and a total usable floor space of more than 12,000 square metres.

  • Equinix SY4, strategically located four kilometres from Sydney’s CBD in Alexandria, enables cloud services providers and users to establish affordable, private, high-performance connections within Platform EquinixTM and accelerate growth. SY4 continues to expand in response to increasing cloud consumption, with local customers expressing demand to connect to hybrid and multi-cloud environments.

  • Customers connected to SY4 also gain access to the ecosystem of Equinix customers, rapid dark fibre connectivity between all Equinix sites in Sydney, and connection with Equinix customers globally via subsea cables, including the Southern Cross Cable Head, PIPE Pacific Cable network and the Hawaiki cable.

  • Australia is an important strategic market for Equinix. The company’s recent A$1.035 billion acquisition of Metronode, expected to close in the first half of 2018, will result in 10 additional data centre locations including Perth, Canberra, Adelaide and Brisbane in addition to Sydney and Melbourne. The acquisition will make Equinix the market leader in Australia and strengthen its leadership position in the region, with the Synergy Research Group stating that "the combined market share of Equinix and Metronode in Australia as of Q3 2017, was 18%, which surpassed all other individual market players in terms of colocation revenues".

  • Today the total global footprint of Equinix covers 190 IBX data centres across 48 markets, providing data centre and interconnection services for more than 9800 of the world’s leading businesses. Among them, 30 IBX data centres are located in the Asia-Pacific region.

Glen Duncan, senior research manager at IDC, said:

"Australia is the third-largest (after Japan and China) Infrastructure-as-a-Service market in the Asia-Pacific region. Ageing enterprise data centres, digital transformation, the internet-of-things and appetite for cloud are all driving rapid expansion in the local third-party data centre market.

"Recent IDC survey research indicates that connectivity and cloud capabilities are important considerations when enterprises and service providers decide upon colocation and the choice of third-party data centre provider. Third-party data centre providers are quickly expanding their service offerings and geographic footprint to meet customer demand.

"The recent acquisition of Metronode plus further development of its existing facilities expands Equinix’s footprint and strengthens its position in the Australian data centre market.”

Jeremy Deutsch, managing director of Equinix Australia, said:

"These expansions in our Melbourne and Sydney locations signify key milestones in our commitment to continue development of our national footprint in Australia.

"Building on our recent acquisition of Metronode, our expansion highlights our relentless commitment to increasing our capabilities and meeting the growth and expectations of our customers to scale over time.

"Both our Sydney and Melbourne campus locations are key digital hubbing points providing customers with direct and private access to a multitude of clouds, service providers, business partners, and end customers affirming our market leading position.”


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Alex Zaharov-Reutt

One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.