Equinix opens xScale data centre in Western Sydney

Equinix has opened the first of two planned xScale data centres in Western Sydney in a US $575 million partnership with PGIM Real Estate. 

Equinix said in a statement that the data centre located in the Western Sydney suburb of Rosehill, SY9x, currently provides more than 14 megawatts of power capacity and would provide more than 28 MW when complete.

The data centre provider said that when SY10x was complete the xScale facilities would provide a combined power capacity of more than 55 MW to meet the city’s surging demand for cloud-based platforms and services among businesses in Australia.

Equinix Australia managing director Guy Danskine said, “to address the increasing demand for cloud and digital infrastructure, the opening of our first xScale data centre in Australia in tandem with the continued expansion of our International Business Exchange data centre capacity across the country ensure more and more organisations can implement their digital-first strategies.”

“This infrastructure enables our customers to scale their operations, deliver exceptional customer experiences and unlock the value of artificial intelligence, machine learning, 5G and other emerging technologies.”

The Nasdaq-listed company pointed to an internally-commissioned research finding that Sydney is forecast to have an estimated 43 percent compound annual growth rate for enterprise private interconnection to the cloud and IT providers between 2020-2024, which is one of the highest in the Asia-Pacific region.

Commenting on the opening of SY9x, NSW Minister for Enterprise, Investment and Trade and Minister for Western Sydney Stuart Ayres said, “Western Sydney is a fast-growing region of great opportunity and potential, offering a diverse and dynamic economic centre.”

“This first hyperscale data centre under the US$575 million joint venture by Equinix and PGIM Real Estate provides essential digital infrastructure to the world’s largest cloud service providers and helps create jobs in our local communities.”

“With unprecedented levels of cloud adoption further accelerating digital transformation across Australia, the decision to locate its first xScale data centre in Western Sydney illustrates the enormous enthusiasm from multinational companies to invest in our growing city.”

PGIM Real Estate, the real estate investment and financing arm of the US insurance company Prudential Financial, owns 80 percent equity interest in the joint venture. Equinix owns 20 percent and will be responsible for operating the hyperscale data centres.  

PGIM Real Estate global head of data centre investments Morgan Laughlin said “Since 2013, PGIM Real Estate has been investing in the vibrant and growing data centre sector and we are now delighted to be opening our first hyperscale data centre in Australia in partnership with Equinix.”

“PGIM Real Estate is projecting to continue expanding its investments in the global digital infrastructure sector, and we view our co-investment relationship with Equinix as an extremely important component of that strategic effort.” 

“In line with PGIM Real Estate’s strong commitment to sustainable building practices and reducing global carbon emissions, we are seeking opportunities to both use renewable energy at our assets whilst also to grow our investments in the renewable energy sector in tandem with the expanding focus on data centres.”