Summary
This 8-K filing from Equinix (EQIX) on December 6, 2012, announces a significant expansion of its global footprint through a new data center lease agreement in Toronto, Canada. Equinix Canada Ltd., a wholly-owned subsidiary, has entered into a 15-year lease for approximately 220,000 square feet of space in a to-be-constructed building. This strategic move aims to bolster Equinix's presence in a key market and is expected to commence operations in the fourth quarter of 2014. The company anticipates a substantial investment in the initial phase of this new facility, with plans to build out 137,000 square feet of floor space designed to house over 675 cabinet equivalents. The total rent obligation over the initial term is approximately $141 million, with Equinix providing a corporate guarantee for its subsidiary's obligations. This expansion underscores Equinix's commitment to meeting growing demand for data center capacity.
Key Highlights
- 1Equinix subsidiary enters a 15-year lease for ~220,000 sq ft of data center space in Toronto, Canada.
- 2The new facility is expected to open in Q4 2014.
- 3Equinix plans to invest ~$42 million in Phase 1 of the new data center.
- 4Phase 1 will provide 137,000 sq ft of floor space and capacity for over 675 cabinet equivalents.
- 5The total rent obligation over the initial lease term is approximately $141 million.
- 6Equinix Inc. has guaranteed the lease obligations of its subsidiary, Equinix Canada Ltd.
- 7The new data center will be located near Equinix's existing TR1 facility in Toronto.