Equinix and PGIM Real Estate Enter Into $600M JV For First xScale Data Center In The U.S.
Portfolio Pulse from Benzinga Newsdesk
Equinix, Inc. (NASDAQ:EQIX) and PGIM Real Estate have announced a $600 million joint venture to develop and operate the first xScale data center in the U.S., located in Silicon Valley. The facility, named SV12x, will offer over 28 MW of power capacity and is part of Equinix's global xScale data center portfolio, expected to exceed $8 billion and 725 MW across more than 35 facilities. PGIM Real Estate will hold an 80% equity interest, with Equinix holding the remaining 20%. This venture marks PGIM Real Estate's first investment through its global data center strategy.
April 15, 2024 | 12:09 pm
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Equinix, Inc. enters a $600M JV with PGIM Real Estate for a new xScale data center in Silicon Valley, holding a 20% equity interest.
The joint venture with PGIM Real Estate to develop the first xScale data center in the U.S. represents a significant expansion of Equinix's global data center portfolio. This strategic move not only enhances Equinix's infrastructure capabilities but also strengthens its position in the competitive data center market. The investment in the Silicon Valley data center, a key technology hub, is likely to attract significant interest from hyperscale companies, potentially driving up Equinix's revenue and reinforcing its market leadership. The 20% equity interest held by Equinix indicates a substantial commitment to the project, suggesting confidence in its success and positive future returns.
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