Equinix enters joint venture agreement with GIC and CPP Investments to expand hyperscale data centers

On October 1, Equinix, Inc. announced that it has entered a joint venture agreement, in the form of a limited liability partnership, with GIC and Canada Pension Plan Investment Board (CPP Investments). The venture intends to raise more than $15 billion in capital. GIC and CPP Investments will each control a 37.5% equity interest, and Equinix will have a 25% equity interest.

Equinix reports that the funding will accelerate its xScale data center portfolio. In April, Equinix and PGIM Real Estate entered a $600 million joint venture to develop and operate the first xScale data center in the United States, located in California’s Silicon Valley region.

The new venture plans to purchase land to build new xScale facilities on multiple greater-than-100-megawatt campuses in the U.S., aiming to add more than 1.5 gigawatts of capacity for hyperscalers.

The closing of the joint venture is contingent upon regulatory approvals and is expected to be finalized in the fourth quarter of 2024.

Adaire Fox-Martin, CEO and president of Equinix, said the company’s xScale and IBX offerings are positioned to address the demand for AI.

“As the world’s leading companies build out their infrastructure to support key workloads such as artificial intelligence, they require the combination of large-scale data center footprints optimized for AI training and interconnection nodes for the most efficient inferencing,” said Fox-Martin in a press release. 

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