Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced it plans to develop a new International Business Exchange™ (IBX®) data center in Osaka, called OS1, which will be its first data center in the western region of Japan. Equinix together with K-Opticom, one of the largest access providers in Osaka/Kansai area and Kanden Energy Solutions (KENES) will open the new data center in Osaka in Q4 of 2013. The data center will strengthen global network connectivity in Osaka by directly connecting to Dojima, the network core in Osaka. This follows Equinix’s recent announcement to build its fourth IBX data center in Tokyo in response to high demand for data center services in Japan. The total investment for Phase 1 of the Osaka data center will be $12M.
Highlights / Key Facts
- The new OS1 data center will provide total capacity of 32,000 square feet and over 800 cabinets equivalents. The first phase, scheduled to open in Q4, 2013, will provide initial capacity of 320 cabinets. OS1 is an ideal data center option for business continuity planning outside of Tokyo with its state-of-the-art, seismically isolated infrastructure and central location in Osaka, minimizing the risk and damage from floods and earthquakes.
- Osaka is Japan’s second largest economy after Tokyo and saw its internet traffic grow by 68 percent and bandwidth increase at a compound annual growth rate (CAGR) of 56 percent from 2008 to 2012 rivaling Tokyo 1. With access to more than 900 domestic and international carriers, OS1 will promote the internationalization of Osaka. OS1 will also strengthen Osaka’s international communication infrastructure as a global network hub through direct connectivity via optical fiber to Dojima, the network core in Osaka.
- In addition, OS1 will offer customers in Osaka Equinix Internet Exchange (EIE) services, the world’s most widely distributed peering and traffic exchange available in 19 locations around the world. The Equinix Internet Exchange provides customers an efficient and cost-effective means to leverage Equinix ecosystems for traffic exchange and transit.
- By leveraging Platform Equinix™, with the world’s largest global footprint, current and prospective customers can quickly expand their businesses to new markets including Osaka with the assurance of receiving the same level of service quality and performance. Customers in OS1 will also be able to access Equinix Marketplace™ to identify potential customers and partners from among more than 4,000 ecosystem participants offering a range of services inside Equinix data centers. Furthermore, by offering bilingual support in Japanese and English, OS1 will help Japanese multinational companies in the Kansai region expand their businesses overseas.
- K-Opticom has the most robust access network in the Osaka region, which will enable multinational telecommunication companies to interconnect with local networks to serve their international customers. As a result OS1 will provide domestic and international customers with dedicated network connectivity services via multiple paths with high reliability.
- Kenes will combine its technology, know-how and experience of KEPCO (Kansai Electric Power Co., Ltd.) with Equinix’s expertise in building and operating data centers worldwide to provide a state of the art, global data center in Osaka.
- Kei Furuta , managing director of Equinix Japan: “Osaka is another important strategic market, along with Tokyo in Japan. Many of our global customers have requested Equinix data center services in Osaka. With the support of K-Opticom, Kenes and O-BIC, we can meet that demand by opening our first IBX data center in Osaka. As the backbone of the digital economy Platform Equinix is used by more than 4,000 customers worldwide and serves as an interconnection platform to promote business growth among customers. I am honored to be able to help invigorate the Osaka economy and promote internationalization through OS1.”
- Yukio Yamasaki, vice president of K-Opticom: “As one of the largest network service providers in the Kansai region, K-Opticom provides network construction services to corporate customers in Kansai and throughout Japan. Now, through a partnership with Equinix, we will provide global customers of Equinix that use OS1 with a variety of added value communication services featuring the high reliability that our company is known for. We are confident that we can support entry into Osaka for multinational companies.”
- Takanori Mizuno, vice president of Kanden Energy Solution Co., Inc.: “Through utility services which rely on the comprehensive strength of KEPCO Group, Kenes supports energy savings, cost reduction and CO 2 reduction for our customers. We will apply the technological capability and know-how that our company has accumulated in the electric industry to the new Osaka data center of Equinix, a global data center provider with a strong performance record, I am confident that Kenes’s utility services can contribute to providing OS1 customers with a highly reliable data center.”
- Shinji Maruyama, director, International Division, Osaka Chamber of Commerce and Industry/ Secretary General, Osaka Business and Investment Center (O-BIC): “Through the O-BIC, Osaka Prefecture, Osaka City and Osaka Chamber of Commerce and Industry we have attracted foreign companies and invigorated Osaka. We welcome the opening of a new data center in Osaka City by the world-leading provider, Equinix. As one of Equinix’s global centers with high network connectivity, OS1 will serve as an optimal IT infrastructure for foreign companies seeking to enter Osaka. I am pleased that OS1 will be opened through cooperation between the public and private sectors.”
About EquinixEquinix, Inc. (Nasdaq: EQIX), connects more than 4,000 companies directly to their customers and partners inside the world’s most networked data centers. Today, businesses leverage the Equinix interconnection platform in 31 strategic markets across the Americas, EMEA and Asia-Pacific. www.equinix.com. Forward Looking Statements This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix’s filings with the Securities and Exchange Commission. In particular, see Equinix’s recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release. Equinix and IBX are registered trademarks of Equinix, Inc. International Business Exchange is a trademark of Equinix, Inc. 1 Source: TeleGeography – Global Internet Geography Asia Report
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