Equinix invests $55 million in Osaka data center

Data center giant Equinix has announced plans to invest $55 million on the construction of a data center in Osaka, Japan.

The data center is set to be the company’s third International Business Exchange (IBX) facility, named OS3.

Osaka’s rising digital and financial hub

Home to many innovative startups, Osaka is fast becoming Japan’s newest digital and financial center.

“With the rising adoption of digital transformation, together with the acceleration of advanced technology such as AI and IoT, we are expecting a strong growth of demand for digital infrastructure in Japan, despite the short-term economy slowdown amid COVID-19,” said Mimei Ito, Research Manager for IT Services at IDC Japan.

Osaka ranks just behind Tokyo in terms of concentration of businesses in the country, with many firms in the region involved in important sectors such as energy, financial services, medical services, and manufacturing.

The expansion of the Equinix data center in Osaka reflects a rapid increase in the deployment of digital workloads among enterprises and their customers in Japan’s second-largest metropolitan area, which is expected to accelerate further through enhanced interconnectivity of cloud ecosystems.

“As a large metropolitan area with many global and locally based enterprises, Osaka has emerged as a significant market. In the past years, we have seen rising demand for secure, high-performance, and low-latency connectivity in the Kansai area,” said Kuniko Ogawa, Managing Director of Equinix Japan.

OS3’s establishment is hoped to contribute greatly to the digital ecosystem in the region, offering close proximity to major internet and peering exchanges along with low latency connections to nearby major cities such as Kyoto and Kobe.

“With our planned OS3 IBX data center, backed by our global footprint and vast array of services offered on Platform Equinix, we are set to expand our ability to bring together and interconnect the infrastructure that businesses need to fast-track their digital advantage,” Ms. Ogawa continued.

Expanding connectivity

OS3 will integrate Equnix’s interconnectivity solution, Equinix Fabric, to allow businesses to connect between their own distributed infrastructure and any other company’s cloud infrastructure.

“The expansion of the Equinix data center in Osaka reflects a rapid increase in the deployment of digital workloads among enterprises and their customers in Japan’s second-largest metropolitan area. This is expected to accelerate further through enhanced interconnectivity of cloud ecosystems,” said Ms. Ito.

The first phase of the facility is expected to be approximately 33,000 square feet wide, providing over 900 cabinets of storage space. When completed, it will have up to 2,500 cabinets in a 89,340 square feet space.

Jeremy Deutsch, President of Equinix Asia-Pacific, commented: “Our expansion in Osaka marks another key milestone in our ongoing plans to deliver Platform Equinix to more businesses in the fast-growing Asia-Pacific region. With our world-class infrastructure and solutions, we will continue to be the trusted partner of digital leaders by enabling them to seize the opportunity with agility, speed and confidence.”

Equinix’s two existing IBX data centers in Osaka currently host content for over 130 companies in a 64,500 square feet colocation space.

Earlier this year, Equinix announced a US$1 billion joint venture with GIC to develop and operate hyperscale data centers in Japan. The three initial facilities, one in Osaka and two in Tokyo, will serve the unique core workload deployment needs of a targeted group of hyperscale companies, including the world’s largest cloud service providers.

By Jie Yee Ong, Tech Reporter

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