Equinix expands footprint in Japan with $115m data center
Equinix has announced its 15th International Business ExchangeTM (IBX) data center in Tokyo, Japan, named TY15 with an initial investment of $115 million.
Strategically located adjacent to the existing network and cloud dense IBX campus in Tokyo, TY15 will strengthen connectivity for global cloud and network service providers, as well as enterprises, enabling them to scale up and empower Japans booming digital economy.
According to IMF, Japan is set to be at the forefront of digitalization by transforming its legacy IT systems to stay competitive locally, regionally and globally to empower innovations and digital transformation. The digital appetite of Japanese enterprises continues to soar, which presents tremendous business opportunities for cloud and network service providers.
According to the Global Interconnection Index (GXI) 2023, a market study recently announced by Equinix, Tokyo continues to lead the Asia-Pacific region in interconnection growth and is forecast to reach 1,758 Tbps by 2025, with approximately 40% of the bandwidth driven by cloud and network service providers.
In addition, IDC forecasts that Japan's domestic public cloud service market in 2022 is expected to increase by 29.8% from the previous year to 2,159.4 billion yen, and the compound annual growth rate (CAGR) from 2021 to 2026 will remain at 20.8%, reaching 4,279.5 billion yen in 2026. This expansion will be timely to serve this rising demand for cloud services. Leveraging the current network density of TY2 and the abundant network fibers from network service providers running throughout the area, TY15 will serve as a magnet to continuously attract additional partners to Equinix's ecosystem and enable service providers to fast-track the expansion journey.
The TY15 IBX is ideally located 1 kilometer from the TY6/TY7/TY8 IBX data centers and approximately 1.5 kilometers from the TY2 IBX data center, further expanding the Shinagawa campus to service the growing demand for data centers and interconnection services. Scheduled to open in H2 2024, the first phase of TY15 will provide an initial capacity of approximately 1,200 cabinets, and 3,700 cabinets when fully built out.
With close proximity and direct fiber connectivity to TY2, TY15 will become the premier site in Tokyo for connectivity, unlocking a plethora of new interconnection opportunities for enterprises and cloud and network service providers alike.
Cloud services are becoming a critical part of Japan's digitization. With the major cloud service providers, such as Amazon Web Services, Alibaba Cloud, Oracle Cloud, Google Cloud, Microsoft Azure and IBM Cloud, all accommodated within the Equinix ecosystem. The new TY15 will provide additional capacity for them to continue growing while attracting new cloud service providers seeking entry into the Japanese market.
With the introduction of a full suite of digital services, Equinix enables customers in Tokyo to transform and scale their infrastructure with speed, agility, reliability by utilizing the cloud-optimized architecture they need to meet todays dynamic business environment. In particular, the newly introduced multipoint-to-multipoint data center interconnection via Ethernet-switched LAN (E-LAN) technology of Equinix Fabric will help businesses and service providers in Japan integrate their distributed IT infrastructure more easily and cost effectively. They can connect their global footprint within a common network instead of setting up point-to-point connections.
The TY15 IBX will incorporate sustainability into its design, implemented with innovative technologies such as magnetic bearing chillers and free cooling. This promotes the alignment with the environmental and sustainability goal of the Japanese government to achieve net-zero carbon emissions by 2050. Equinix data centers adopt ancillary green functionalities like motion-activated LED lights, high-temperature chilled water set points, DCIM and Adaptive Control Systems and cold/hot aisle containment to reduce total energy consumption.
The global footprint of Platform Equinix encompasses over 245 data centers across 71 major metros around the world, providing digital infrastructure for more than 10,000 of the world's leading businesses. In Asia-Pacific, Equinix currently has 51 data centers in 13 key metros across Australia, China, Hong Kong, Japan, Korea and Singapore. In early October, Equinix also announced plans for an approximately $74 million IBX data center in the heart of Jakarta, Indonesia.
"Equinix is committed to supporting our customers to embrace interconnectivity with rising digital economies in both core Asia-Pacific data center metros and emerging markets like Indonesia," says Jeremy Deutsch, President, Equinix Asia-Pacific
"Our further investment in Japan reflects the growing demand for digitization as the Asia-Pacific market rapidly outpaces the global average in hybrid cloud adoption," he says.
"TY15 will expand the capacity and range of services Equinix can provide for our customers and partners as they seek to expand their digital footprint in the Asia-Pacific region supporting the key market of Tokyo."
Kuniko Ogawa, Managing Director, Equinix Japan, adds, "TY15 will be a critical addition to our portfolio and our next TY2 to address the exponential digital infrastructure demands arising in Japan's journey towards a digital economy.
"Key business sectors across the country are undergoing their respective transformations, now more than ever digital infrastructure plays a vital role in realising new and greater opportunities for businesses," he says.
"While Tokyo seeks to continuously strengthen its position in the financial sector as a gateway for investment into the Asia-Pacific, the expanding Shinagawa campus, together with our world-class infrastructure, will allow us to support the city's rising demand for reliable digital infrastructure and services.
"Enterprises looking to bolster their digital ecosystems can leverage Platform Equinix to unlock proven, on-demand and stable connectivity to thousands of clouds, networks and digital supply partners."