Summary
Equinix Inc. (EQIX) announced the closing of its initial joint venture with GIC, Singapore's sovereign wealth fund, on October 8, 2019. This strategic partnership establishes a new entity to acquire and operate data center facilities in Europe, initially focusing on six key locations in Amsterdam, Frankfurt (two sites), London (two sites), and Paris. Equinix will retain a 20% interest in the joint venture, while GIC will hold 80%. Under the terms of the agreement, Equinix will manage and operate the data centers, providing a comprehensive suite of services including sales, marketing, development, facilities management, and overall coordination. The joint venture has secured significant financing, including an €850 million credit facility, to support its operations and future development of xScale data centers. This move allows Equinix to leverage external capital for growth while continuing to benefit from the operational expertise and strategic management of these European assets.
Key Highlights
- 1Equinix and GIC closed their initial joint venture focused on European data centers.
- 2The joint venture initially includes six data center facilities in Amsterdam, Frankfurt (2), London (2), and Paris.
- 3Equinix holds a 20% interest, and GIC holds an 80% interest in the joint venture entity (EMEA Hyperscale 1 C.V.).
- 4Equinix will provide management, operational, and development services for the joint venture's data centers.
- 5The joint venture secured €850 million in secured credit facilities for operations and development.
- 6The financing includes a €200 million term loan, a €610 million delayed draw term loan for new xScale development, and a €40 million revolving credit facility.
- 7This joint venture allows Equinix to accelerate growth in the hyperscale data center market by utilizing third-party capital.