Equinix Teams Up with PGIM for $600M Data Center JV in Silicon Valley

Equinix, Inc. and PGIM Real Estate have teamed up for a $600 million joint venture to establish the first xScale data center in the U.S., situated in California's Silicon Valley region. The facility, named SV12x, will provide over 28 megawatts of power capacity once fully operational. It's part of Equinix's Great Oaks data center campus in San Jose, adjacent to four existing Equinix International Business Exchange (IBX) data centers. The first phase is slated for completion in Q2 2024.

Highlights and Key Facts

This venture marks the second collaboration between Equinix and PGIM Real Estate. When combined with Equinix's existing ventures in Europe, Asia-Pacific, and other parts of the Americas, the global xScale data center portfolio will surpass $8 billion, encompassing over 35 facilities and more than 725 megawatts of power capacity upon full construction.

Equinix xScale Data Centers

Equinix xScale data centers empower hyperscale companies to augment their core deployments within Equinix IBX data centers, facilitating their expansion on a unified platform spanning over 70 global metros and offering direct interconnection to a network of over 10,000 customers.

Equity Distribution

Under the agreement, PGIM Real Estate will hold an 80% equity interest in the joint venture, while Equinix will retain the remaining 20% equity interest.

PGIM Real Estate's Data Center Strategy

PGIM Real Estate's involvement in the data center sector dates back to 2013. This venture signifies PGIM Real Estate's inaugural investment through its dedicated global data center strategy, aimed at investing exclusively in hyperscale facilities in key internet gateway markets across the U.S., Europe, and Asia-Pacific, managed on behalf of third-party clients.