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Equinix Inc., a leading digital infrastructure developer, announced Tuesday the launch of a $15 billion joint venture (JV) with GIC and the Canada Pension Plan Investment Board (CPP Investments) to develop data centers. The deal will allow Equinix to significantly expand its U.S. data center footprint as demand for digital infrastructure continues to rise.

Expanding U.S. Data Center Capacity

The California-based real estate investment trust plans to leverage the funds from the joint venture to acquire land and develop data centers with a capacity of more than 100 megawatts on new campuses. Equinix's goal is to add over 1.5 gigawatts of new capacity across these data centers, ensuring the company can meet the growing demand for digital services and cloud infrastructure.

In its announcement, Equinix emphasized the substantial scale of its existing data center portfolio. The company has already invested more than $8 billion in joint ventures across the Americas, Europe, and the Asia-Pacific region, which have the capacity to develop 725 megawatts of power across 35 facilities.

Equinix Forms $15B JV : JV Structure and Future Plans

Under the terms of the new $15 billion JV, GIC and CPP Investments will each hold a 37.5% stake, while Equinix will retain a 25% ownership interest. The partnership is expected to close in the fourth quarter of 2024, subject to regulatory approvals.

By forming this joint venture, Equinix seeks to secure long-term capital for expanding its digital infrastructure, particularly in the U.S. This move aligns with the company's broader strategy of partnering with major institutional investors to accelerate data center development worldwide.

Growing Investment in Digital Infrastructure

This new partnership builds on Equinix's strong track record in the global digital infrastructure market. As more businesses rely on cloud computing, artificial intelligence, and other data-heavy applications, the demand for data centers continues to grow rapidly. The $15 billion joint venture underscores Equinix's commitment to staying at the forefront of the digital transformation.

While counsel information for the deal was not immediately available, the finalization of the JV will mark another milestone in Equinix's expansion efforts. The company’s ability to forge partnerships with significant investors like GIC and CPP Investments positions it well to meet the increasing infrastructure demands of a digitally connected world.