Digital infrastructure company Equinix, Inc. (NASDAQ:EQIX) and PGIM Real Estate, the real estate investment and financing arm of PGIM, the global asset management business of Prudential Financial, today announced the entry into a $600 million joint venture to develop and operate the first data center xScale in the US, located in the Silicon Valley region of California.
The two-story facility, which will be known as SV12x, will be built in two phases and is expected to provide more than 28 megawatts (MW) of power output at full construction. The SV12x is located on Equinix’s Great Oaks data center campus in San Jose, California along with four existing Equinix International Business ExchangeTM (IBX) data centers.
The first phase of the installation is scheduled to be completed in the second quarter of 2024.
This deal represents the second joint venture between Equinix and PGIM Real Estate.
Combined with Equinix’s existing hyperscale consortiums in Europe, Asia Pacific and elsewhere in the Americas, this new consortium will bring the global portfolio of xScale data centers to more than $8 billion across more than 35 facilities and expected to more than 725 megawatt. power capacity when fully completed and constructed.
Equinix xScale data centers allow hyperscale companies to add core deployments to their existing Equinix IBX data center access point footprints, enabling their deployment on a single platform that can instantly span more than 70 global metros and offer direct connectivity to a ecosystem of over 10,000 customers.
Under the terms of the agreement, PGIM Real Estate will control 80% of the shares in the joint venture and Equinix will hold the remaining 20% of the shares.
PGIM Real Estate has been investing in the data center space since 2013. This latest joint venture agreement with Equinix marks the first investment made through PGIM Real Estate’s proprietary global data center strategy, managed on behalf of third-party clients, for investments exclusively in hyperscale facilities located in gateway markets in the US, Europe and Asia Pacific.