Exhibit 99.1
Equinix to Acquire Site for New Data Center in Los Angeles Market and
Expand Existing IBX(R) Center in Silicon Valley
West Coast Expansion Driven by Strong Demand for Data Center
Colocation and Network Exchange Services
FOSTER CITY, Calif.--(BUSINESS WIRE)--June 14, 2007--Equinix, Inc.
(Nasdaq:EQIX), the leading provider of network-neutral data centers
and Internet exchange services, today announced the planned
acquisition of a new data center property in the Los Angeles area and
the expansion of an existing center in the Silicon Valley. The
announcement of the expansions comes as the demand for data center and
network exchange services continues to accelerate, far outpacing
supply.
According to Tier1 Research's Mid Year 2007 Internet Data Center
Supply Report, North American data center demand is outpacing supply
by a factor of two to one. Equinix has responded to this increased
demand with an aggressive expansion strategy since late 2003. By early
2008, Equinix will have more than doubled its capacity with expansions
in the New York, Washington, D.C., Silicon Valley, Chicago, Los
Angeles, Tokyo, Singapore and Sydney markets.
The new Los Angeles area center will provide Equinix with
additional data center space to respond to accelerating customer
demand within the rapidly growing digital media and entertainment
industry in the region. Located near one of Equinix's existing centers
in El Segundo, the new center will be Equinix's fourth Internet
Business Exchange(TM) (IBX(R)) center in the Los Angeles area. Equinix
intends to utilize the existing high-quality building on the new site
for this expansion.
The property will be acquired for $49 million and Equinix is
scheduled to close on the purchase of the property by the end of June.
The center is expected to be open for customers in the fourth quarter
of 2008 and will accommodate approximately 1,700 cabinets in its
initial phase. The site features a total capacity of approximately
3,000 cabinets, and it will be directly linked to the three other Los
Angeles area IBX centers through redundant dark fiber links managed by
Equinix.
The new center will feature physical infrastructure consistent
with Equinix's industry-leading standards for security, environmental
control and power availability. In addition to purchasing the land and
existing building shell, Equinix plans to acquire access to power and
provision fiber for interconnection to Equinix's other three IBX
centers in the region.
Also announced today, Equinix intends to expand its existing IBX
center in Santa Clara, California by approximately 1,100 new cabinets.
This new capacity will provide expansion options in the strategic
Silicon Valley area, where the company already operates three other
centers. The new space will offer direct access to the more than 90
networks and 125 enterprises and content companies already operating
within Equinix's Silicon Valley IBX centers, a principal element of
Equinix's value proposition. Equinix intends to begin placing new
customers in the expanded space in the second quarter of 2008.
At capacity, Equinix expects the Silicon Valley expansion to
generate approximately $25.0 to $30.0 million in annual revenue.
Equinix intends to invest approximately $41.0 million in the
expansion, of which $26.0 million is expected to be committed in 2007.
Equinix intends to update its full year capital expenditures guidance
for the Los Angeles and Silicon Valley expansions on its second
quarter earnings call.
"Video and multimedia applications continue to be a catalyst for
accelerated demand from our content and digital media customers in our
West Coast markets," said Steve Smith, CEO of Equinix. "Today's
expansions in the Los Angeles and Silicon Valley markets represent
Equinix's commitment to maintaining our leadership position in the
growing data center and network exchange services market."
About Equinix
Equinix is the leading global provider of network-neutral data
centers and Internet exchange services for enterprises, content
companies, systems integrators and network services providers. Through
the company's Internet Business Exchange(TM) (IBX(R)) centers in 10
markets in the U.S. and Asia, customers can directly interconnect with
every major global network and ISP for their critical peering, transit
and traffic exchange requirements. These interconnection points
facilitate the highest performance and growth of the Internet by
serving as neutral and open marketplaces for Internet infrastructure
services, allowing customers to expand their businesses while reducing
costs.
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; a
failure to receive significant revenue from customers in recently
built out 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; the results of any
litigation relating to past stock option grants and practices; 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.
Internet Business Exchange is a trademark of Equinix, Inc.
CONTACT: Equinix, Inc.
Jason Starr, 650-513-7402 (Investor Relations)
jstarr@equinix.com
or
K/F Communications, Inc.
David Fonkalsrud, 415-255-6506 (Media)
dave@kfcomm.com