Equinix revealed it will invest US$51 million to expand their footprint in Hong Kong and support the growing demand for digital transformation by businesses.
“With more and more companies embracing digital transformation, we have seen demand for interconnection continue to grow,” said Larry Tam, the Managing Director for Equinix Hong Kong.
The acceleration of digital transformation brought by the pandemic as well as the advent of Industry 4.0 technologies like 5G are driving the demand for data centers and interconnection in Hong Kong.
Equinix’s Global Interconnection Index Volume 3 recently revealed that Hong Kong is expected to see the second fastest interconnection bandwidth growth in the region, increasing at 55% CAGR from 2018 to 2022.
A separate survey showed 46% decision-makers in Hong Kong believe interconnection is a key facilitator of digital transformation, with 45% believing interconnection can help their business gain a competitive advantage.
The global interconnection and data center company also announced the completed third phase expansion of HK4, one of Equinix’s five International Business Exchange™ data centers in Hong Kong.
The expansion added 1,000 cabinets to the 500 currently stationed at the facility, with a further 3,000 expected to be added in future phases.
Equinix’s current colocation space totals approximately 34,500 square meters in Hong Kong, with the aim of supporting digital edge and business continuity strategies along with digital transformation of local and international enterprises.
Their US$51 million investment in Hong Kong follows a second US$1 billion joint venture with Singapore’s sovereign wealth fund, GIC, to build hyperscale data centers in Japan.