Key Takeaways
- • Equinix and PGIM Real Estate entered a $600 million joint venture to develop and operate SV12x, the first xScale data center in the U.S., located at Equinix's Great Oaks campus in San Jose, California.
- • PGIM Real Estate will hold an 80% equity interest in the joint venture, while Equinix retains the remaining 20%.
- • The facility is expected to provide more than 28 MW of power capacity at full build-out, delivered in two phases, with the first phase scheduled for completion in Q2 2024.
- • The deal lifts Equinix's global xScale portfolio to more than $8 billion across more than 35 facilities and over 725 MW of expected capacity once fully constructed.
- • This is the second Equinix-PGIM xScale joint venture, following a US$575 million JV announced in October 2021 for Australia.
Summary
Equinix, Inc. (Nasdaq: EQIX) and PGIM Real Estate, the real estate investment and financing arm of PGIM, Prudential Financial's global asset management business, announced a $600 million joint venture to develop and operate the first xScale data center in the U.S., according to an Equinix press release issued April 15, 2024. The facility, designated SV12x, is a two-story building being built out in two phases and is expected to provide more than 28 megawatts of power capacity at full build-out.
SV12x will be located on Equinix's Great Oaks data center campus in San Jose, California, alongside four existing Equinix International Business Exchange (IBX) data centers in the Silicon Valley region. The first phase is scheduled to be completed in the second quarter of 2024.
Under the agreement, PGIM Real Estate will control an 80% equity interest in the joint venture, and Equinix will own the remaining 20%. The transaction is the second joint venture between the two companies, following a US$575 million JV announced in October 2021 to extend Equinix's hyperscale data center program into Australia, which led to the opening of a first xScale facility in Sydney.
The new venture brings Equinix's global xScale portfolio to more than $8 billion across more than 35 facilities, with an expected capacity of greater than 725 MW when completed, combining it with the company's existing hyperscale joint ventures in Europe, Asia-Pacific and other parts of the Americas. Equinix says xScale data centers allow hyperscale companies to add core deployments alongside their existing IBX access point footprints, spanning more than 70 global metros and offering direct interconnection to more than 10,000 customers.
PGIM Real Estate has invested in the data center sector since 2013. According to the release, this agreement is the first investment made through PGIM Real Estate's dedicated global data center strategy, managed on behalf of third-party clients, which targets hyperscale facilities in internet gateway markets across the U.S., Europe and Asia-Pacific. PGIM Real Estate reports $210 billion in gross assets under management and administration as of December 30, 2023, with net AUM of $134 billion.
SV12x will be located on Equinix's Great Oaks data center campus in San Jose, California, alongside four existing Equinix International Business Exchange (IBX) data centers in the Silicon Valley region. The first phase is scheduled to be completed in the second quarter of 2024.
Under the agreement, PGIM Real Estate will control an 80% equity interest in the joint venture, and Equinix will own the remaining 20%. The transaction is the second joint venture between the two companies, following a US$575 million JV announced in October 2021 to extend Equinix's hyperscale data center program into Australia, which led to the opening of a first xScale facility in Sydney.
The new venture brings Equinix's global xScale portfolio to more than $8 billion across more than 35 facilities, with an expected capacity of greater than 725 MW when completed, combining it with the company's existing hyperscale joint ventures in Europe, Asia-Pacific and other parts of the Americas. Equinix says xScale data centers allow hyperscale companies to add core deployments alongside their existing IBX access point footprints, spanning more than 70 global metros and offering direct interconnection to more than 10,000 customers.
PGIM Real Estate has invested in the data center sector since 2013. According to the release, this agreement is the first investment made through PGIM Real Estate's dedicated global data center strategy, managed on behalf of third-party clients, which targets hyperscale facilities in internet gateway markets across the U.S., Europe and Asia-Pacific. PGIM Real Estate reports $210 billion in gross assets under management and administration as of December 30, 2023, with net AUM of $134 billion.
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